Applying for Home Loans Online: Latest Trends and Difficulties

do you think about apply online for a title loan? Online securities lending markets have grown steadily over the past two decades, and that is, of course, great news for consumers who face a pervasive need for borrowing. Check out this research from the American Bankers Association (ABA):

  • 80% of banks have invested or plan to invest in online services to streamline lending
  • 26% of banks have already set up a system for accessing securities loans
  • 71% of banks use third-party online platforms to analyze loan qualification

Is there a clear regulatory framework to protect online loan offers?

The US Federal Reserve has been slow to put in place a comprehensive legal framework for banks issuing loans using online platforms – Europe has been much more successful in crafting these plans. However, while this poses challenges for consumers [read more about legislation here, most people can access title loans online through dozens of leading lenders. 

Borrowers don’t realize it, but there are a lot of state-specific factors that influence loan application services and your ability to get a title loan. For instance, lenders are only allowed to offer title loans across vast territories, so most firms provide loans to a few states.

How to get a title loan online

It is a fairly straightforward process and works a lot like any other loan process, except in this case you have to put down one of your assets as collateral. If you’re wondering where to get the loan in the first place, here is a list of the best companies offering title loans:

TMG: This is by far the best place to go online for auto title loans – and it’s also the highest-rated on ConsumerAffairs.Com. Loan applicants can get up to $50,000 processed and approved in the same day, however, in the case of auto loans, you must have cleared off the debt and earn a minimum of $1,500 a month.

Loan Center Title Loans: This company provides a reasonably large platform to fund title loans, and it has been in business for over 13 years. The rates are among the lowest anywhere, and funds can be approved in 24 hours. Applicants should also have employment with earnings of at least $1,500 a month. Bear in mind that Loan Center Title Loans isn’t accessible from all 50 states.

Finova Financial: They have a car equity line that offers low rates and one-year payback plan, not to mention same-day funding and no penalty for prepayment. The car owner must also be lien free and have adequate car insurance including collision coverage. Loans are offered in six states. Check their website for more information. 

CaliforniaTitleLoans: Here you will find same-day online title loans (if you live in the sunshine state) and the best part is, bad credit won’t be a feature in your application. They qualify a loan based on the equity of your collateral, and payment terms range from anywhere between 12 and 40 months.

PremierTitleLoans: This is a coast-to-coast company that prides itself in offering affordable rates and quick loan processing. Applicants should have an income of at least $1,500 a month, a co-signer, and they can qualify for a loan even with bad credit. Services are available in most states.

Pros of online title loans

  • Simple application: When compared to traditional bank loans, online title loans are much easier to get through, and that makes them perfect for getting quick money. Most online platforms offer 5-minute application forms, and a reply
    comes quickly.
  • Current employment, not a factor: Most people don’t realize this but lenders only ask for proof of income, but they don’t insist on proof of employment. Ability to repay the loan can come from anywhere including a job, benefits,
    inheritance, pension, etc.
  • No credit rating: This is what makes title loans more accessible to the general public. The fact that you don’t need to have an excellent credit rating means that the bank feels the loan is secured by whatever you provide as collateral. The only reason lenders do a credit check before offering title loans is to make sure the borrower isn’t bankrupt or undergoing credit counseling. 
  • Access to near-instant cash: Since this process takes minutes to finish, anybody can put together a loan on the same day [or within 24 hours] and be able to resolve a number of emergencies.
  • Direct deposits: These facilitate access to funds to meet your financial needs i.e. once the loan application is approved.
  • Borrow only what you need: The value of your collateral determines the borrowing limit, but you can only borrow what you need, as long as you do not exceed the limit. It allows the borrower more freedom.

The inconvenients:

  • Title loans have higher interest rates than mortgages, auto loans, and personal loans. However, you can reduce the interest by repaying the loan earlier than expected.
  • Title loans are not legal in the United States. To obtain a title loan, you may need
    travel to a state that allows them.
  • A late payment will make you pay higher fees. If any of the installments are paid late, it increases the chances of increasing the loan balance.
  • Lenders place a lien on vehicle titles. This lien is then entered into state records, and the borrower is unable to acquire another loan for the car until the loan is cleared.
  • Risk of repossession: the lien placed on car titles generally means that the borrower runs the risk of losing their security in the event of default.
  • Shorter repayment schedule: Title loans need to be repaid faster than traditional loans [some loan packages are offered with repayment schedules as short as 30 days].

Tips for Getting the Best Title Loan

Find out about the lender’s plans properly before applying for a loan. Remember that a longer repayment plan means you’re dealing with lower installments, and therefore more flexibility on your part. Repayment penalties tend to complicate matters, so watch out for them and find out about the lender’s online application process. Some websites require an additional phone call or other communication when applying online for securities loans [including visual inspection of
collateral] to approve a loan.

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