How Does Covid-19 Affect My Title Loan Application?

Pandemics, much like financial emergencies, will often creep up when we least expect it. We all know to be prepared and have a savings account with money saved up. In normal times this is hard to do as it seems there are always monthly expenses with not enough money left over. Here in 2020 with the current coronavirus crisis, these are far from normal times. While fewer people are applying for online title loans, there still demand for short term funding. Most title loan lenders are still operating at normal capacity. But like other financial organizations it may take a bit longer to process and underwrite your application.

With The Covid-19 Shutdown, When Will I Receive Cash For My Car Title?

The entire process of applying for a title loan online takes between 15 to 30 minutes. It often depends on how fast you can do your part and the policy of the company you’re working with. Some companies will need extra information from your employer or recent vehicle history. Most lenders that provide online title loans will still need to do a vehicle inspection. This is difficult to do with the current Covid-19 lockdown and stay at home orders. It’s hard to get a consensus from title loan companies across the country. covid effect on title loan companies But we hear that most are still doing a full vehicle inspection. In states that don’t have a stay at home order, these inspections are still done in person. In other states like California and Illinois, the inspection will be done over live video and you may need to show a full video view of your car.

As long as you own a car outright, your online application is already halfway done. The moment you present your vehicle to the lender either in person or through a photograph, they will assess it to estimate its worth. If you go to company that offers instant title loans near you, they will compare your car’s value to other local comps. Some online services will still check for comps for similar vehicles. Others will get the value from bluebook or any type of valuation provider. The financial worth of your car will directly determine how much money you can qualify for the loan. The rest of the process is often easy in most times when we’re not dealing with a Covid-19 pandemic. As things stand now you can expect a longer wait time to get cash. The situation is made worse because most banks and car title loan companies have shorter hours and less staff in place. But if you’re patient you can still pawn a vehicle and hope to get your funds within one or two business days. That short amount of time looks good on paper. It’s of course quick when you compare to a personal loan that can take days and weeks. Or consider a mortgage refinance or cash out which is measured in weeks or months to get available cash. A few days to complete an instant online title loan from start to finish is still good when you factor in a National emergency and current state of affairs with Covid-19.

In most cases, online title loans are popular for their same-day approval services. Which means you can get your money in as little as a single business day. It all comes down to how fast you are able to contact the lender and get the process started. These are emergency loans, and it does not make sense to keep borrowers waiting for their money longer than necessary. Emergency means right this instant, not tomorrow. Borrowers often ask us, how do I physically collect my money after using a pink slip as collateral? That’s one thing people don’t think about until they get to the end of the process when applying for a title loan online. Luckily, title loan lenders have many different options available for those who are stuck at home or have limited banking options. After you have hand over your car title and the loan is approved, your online lender will hand over the money either in cash or wire it to your bank. You can also request it to be sent through Western Union or Moneygram. Another option is to have it sent straight to your bank account through ACH. Some people will ask for a bank wire, but that can take days and you will often see a service fee.

Expect A Longer Wait Time To Get Cash For Your Pink Slip

The process to apply for online title loans is short and simple. All you have to do is visit a store of your choice in your local area or get in touch with an online lender. See if your lender's office is open or under a lockdown As mentioned above, it’s not as easy as it used to be to apply for instant title loans. We can’t stress that enough. With Covid-19 restrictions, you are likely not going to walk into a store or meet with someone in person. Next, show any or all of the documents listed above to your lender. Most companies, either online or offline, offer assistance to guide you through every step of the way.

The first step to get cash when using your pink slip as collateral for a loan is to apply and get a vehicle appraisal. A quick truck or car appraisal will be conducted in order to determine the amount of loan you can qualify for. Some lenders may even ask borrowers to buy a roadside service plan or give them an extra set of keys as security in the case of a default. If the application is accepted and approved, borrowers will have to surrender the title of the vehicle as collateral. Some people will have a problem with that as it means the lender can repossess the car if the  loan falls into default status. Once the borrower signs and agrees to the lending agreement, they are now bound to repay the loan. All that is true and it’s important to make monthly loan payments on time. But consider that a few years ago most online title loan companies would often ask for the pink slip and car itself as collateral for the loan! That means you were actually pawning the car itself for cash. You would have no way to get to work or get around in your day to day life and that’s why this type of funding didn’t last very long!

Contact an Instant Title Loan Lender To See If They Can Get Your Cash Quicker

As of 2020, most reputable lenders will be fine with using the pink slip as collateral. Through this appraisal value, borrowers can obtain the loan they need while also drive their car as before. The lien on the vehicle will be released once the entire loan has been repaid. Be sure to speak with your lender about their current coronavirus protocol and lending terms before wasting time applying for online title loans. Many companies listed in our directory of lenders that offer instant title loans have clearly spelled out protocol on how to handle applications and underwriting in the current Covid-19 environment. Ask them what to expect during the process and if anything has changed on their end when you factor in the current State restrictions. Also see if there are any delays that could affect the amount of time it takes to get your cash!