Funding options for online title loans seem to change multiple times a year. As an example, in just the last two years we’ve seen multiple finance companies exit the lending industry. We’ve also seen states as well as the federal government attempt to increase regulations on the various firms that provide online title loans. There used to be many large companies that provided online title loans but now they’re out of business because of increased regulations. It seems that increased scrutiny on the title loan industry has resulted in a decrease from over 45 states that authorized online title loans to just 23 states as recently as 2015. As we check back on this story in 2017 we’re reminded there will always be changes when it comes to most financial products. As an example, most mortgage lenders and bad credit lenders that are around today were not in business just a few years ago. This is no different than what we’re currently seeing with online title loan lenders.
All these recent changes have made it that much harder for consumers who legitimately need an online title loan. We think it should be easy to do a simple search in Google for any title loan related term, but that’s no longer the case. Right now we can assume that most people who apply for an online title loan are doing it to meet financial needs. These people are unable to get a bank loan and they have no chance of getting an installment loan with reasonable interest rates. This means their short-term lending options are limited. They can take out an online payday loan or drive around and look for a local lender in their neighborhood. It’s not always a given that people searching for a title loan online even need that in the first place. There are many instances where people think they need a title loan when it may be best for them to take out a cash advance or just borrow money from a friend. Here’s a good resource for people just getting started in their search for a loan. This search portal is maintained by the Government and is a good start when looking for an online loan. Now, if someone is searching for a high dollar loan then we know what they’re likely to choose a title loan over a cash advance. Payday loans are usually only issued from $200 to $800. Anyone who’s looking for a title loan online will obviously pass on this low amount if they’re looking for a loan of $2,000 and up.
Here’s the most important thing to remember when you first start the search process. An online title loan gives people the chance to borrow an amount that’s equal to what their vehicle is worth. If a person has a vehicle that’s worth $50,000 they should be able to borrow at least $25,000 and sometimes even more in certain circumstances. All the direct lender wants is to be sure they can recoup the loan if the consumer stops making payments. Of course, this is the worst case scenario for the borrower and it should be discussed during the initial search for a loan. The car title lender will typically sell the vehicle if someone falls behind on their payments. They will then put the proceeds of the sale towards the remaining loan amount. Anything left over would then be given back to the consumer. Most people won’t end up in this situation. Reputable companies that offer car title loans will generally work with you if you fall behind on a loan and work out a payment plan. There are numerous options on the table that may change this process moving forward. There is meaningful legislation that affects the car title loans currently in process and funded throughout the country. That’s why it’s so important to stay on top of the most recent changes concerning title loans online. On any given month there are dozens of bills and laws passed that can create huge changes to title loan rules in any state. This is another strategy to remember when picking amongst dozens of lenders. Someone that knows the current legal standing of the car title loan industry in their state will have a jump on most everyone else.
Car Title Loans can be easy to find – just look online!
The plan of action that we discussing here needs to be implemented from when you start looking for a loan to when you’re approved. There are so many ways for a car title lender to take advantage of someone who doesn’t know the ins and outs of the qualification process. For example, did you know that an online title loan company can legally sell your vehicle in just a few weeks after you fall behind on your monthly payments? Not only that, they can also make it very difficult for someone to get their car back once it’s been repossessed. This situation will undoubtedly cause the borrower to have bad credit. But it will also leave them without a vehicle. It’s imperative that you know your rights before you start the process of applying for online title loans. Here’s another tidbit for you that concerns a Las Vegas title loan. Much like any other state lenders that fund car title loans in Las Vegas or Nevada are going to have individual state rules that must be followed. Did you know that Las Vegas sets a limit for what the minimum amount a title loan can be issued at? That means someone can find a title loan lender online that’s ready to give them $100 for a title loan. What’s really happening here. is that lender is either ignorant of the Nevada lending laws or just doesn’t care. This example falls back into what we discussed earlier. An informed consumer is the best consumer. There are a handful of things to know just like that that will save you so much time and frustration during the process of searching for online title loans.
Where can I find companies that offer direct online title loans? Look online!
One thing we noticed when surveying past readers is the fact they didn’t ask enough questions of their prospective lenders. This is probably the most overlooked aspect of the title loan process that can be easily fixed. People that sell or “market” online title loans are in the business of selling. There’s no way around that fact. It’s no different from a mortgage broker or insurance broker. They will sometimes conveniently leave out important facts or twist their words to tell you what you want to hear. Don’t let this happen. Dig into the fine print of the car title loan contract. If they keep talking about the benefits of online title loans ask what the negatives or drawbacks are. This will throw them off their pitch and give you a bit more control throughout the process. Another factor to consider is that most consumers will apply for online title loans versus going with their local lender. This is fine but sometimes makes it difficult to have a one on one conversation. Don’t let this fact stop you from getting all the answers. Call the company if they have a phone number listed! Some companies that fund title loans online even have a live chat option. This is great because you can get all your answers in writing and also be satisfied knowing that you spoke with someone.
Search Options for online title loans may change in 2017
We really hope that everything mentioned above will help you as you search for an online title loan. Anyone who made it this far in the article should be confident in their strategy to identify and lock in a car title loan. We also recommend that all title loan applicants do a budget and cash flow worksheet to better manage their finances. This way, there is less of a chance that you find yourself in a situation down the road where a title loan sounds appealing. There will always be people that don’t have the option of choosing a low-interest bank loan or installment loan over a car title loan. Don’t be that person. In addition to a budget worksheet, we also recommend documenting each conversation that takes place with your title lender. It should make no difference if the lender is local or instead funds online title loans. By documenting your conversations during the application or search process you will have everything in writing. Additionally if there are issues in the future, the information that you have kept from the online title loan search process should only help.