What Are Online Title Loans?
Car title loans are a type of bad credit loan option that uses the borrower’s vehicle title as collateral. During the approval process, lenders sign onto the borrower’s vehicle title as a lienholder, which gives them partial ownership over the borrower’s car. That way, if the borrower fails to repay their loan the lender can repossess their vehicle to recoup losses. About 11% of people who take out title loans will have their car repossessed every year.1
How Do Online Title Loans Work?
Getting a car title loan works similarly to getting any other type of loan, except the borrower must have a free-and-clear vehicle title to use as collateral. Borrowers can apply online and submit photos of their vehicle along with their application. When reviewing title loan applications, lenders will consider the value, or equity, in the borrower’s car and will usually base approval on this factor.
If approved, borrowers must allow the lender to sign onto their vehicle title as a lienholder during the terms of their title loan. While borrowers can usually keep their car to drive like normal while they pay off their loan, their vehicle is still at risk of repossession if they miss payments or default on their loan.
On the surface, title loans may seem like a convenient way to get quick cash, especially if you are working with a less-than-perfect financial history. However, car title loans are known for having extremely high interest rates and short repayment terms, making them notoriously difficult to repay. CreditNinja personal loans aim to be a more sustainable option over predatory car title loan lending products. We offer the same easy approval requirements that many car title loans offer, plus CreditNinja loans come with customizable repayment options, competitive APRs, and don’t require you to put your car at risk!
How Do CreditNinja Loans Work?
CreditNinja personal loans are a quick and simple way to access fast cash without having to use your vehicle as collateral. Our bad credit installment loans come with easy approval requirements, competitive APRs, flexible payment plans, and a short application designed to get you your money ASAP. Once approved, you can sign your contract and get your money directly deposited into your checking account as soon as the same-day or the next business day!*
| Apply Online Fast & Easy | Income Verification | Same-Day Availability* |
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| Fill out the easy online application and find out if you qualify in minutes! | We’ll use Instant Bank Verification (IBV) to confirm your income. | Sign your contract and get your money in a few hours, or the next day!* |
Online Title Loans Rates and Terms
Although title loans may offer fast cash, they almost always have extremely high interest rates, resulting in unaffordable monthly payments or putting you at risk of defaulting on your loan. While it may be extremely tempting to take advantage of these types of loans when you need money now, especially if you have a bad credit score, they may end up causing much more damage in the long run. Instead, take your time and research lenders and loan options to make sure you find a loan that is both convenient and affordable.
Repayment Period
These bad credit loans usually offer various repayment options, from lump sum payments to installment plans. If you find it challenging to meet your repayment schedule, some lenders may offer refinancing or restructuring options. Depending on the lender, you may be able to pay online, through automatic payments, or in person.
Applying for an Online Title Loan
Applying for an online title loan is a straightforward process that results in the borrower receiving funding in exchange for using their free-and-clear vehicle title as collateral. If you decide to take on this kind of loan, be sure to follow this step-by-step guide so you understand the requirements, required documents, and overall process of successfully applying for a car title loan.
- Find a lender and check your eligibility — Check out a few lenders online and see what types of approval requirements they have. This should give you a better idea of which lender may work best for you and your financial situation.
- Gather the required documents and submit your online application — Upload your documents to your smartphone or computer so you can easily attach them to your online application.
- Wait for approval and receive a loan offer — You should receive an approval decision right away.
- Sign your loan agreement — Upon approval, read over your loan contract carefully. Your contract will have all the information regarding your loan including repayment terms, APRs, and other fees. Don’t sign your loan agreement until you feel comfortable with your terms and fees.
- Receive your approved funds — After you sign your contract you can get your loan money! Many lenders offer direct deposit, which allows borrowers to receive their funds directly to their checking account.
- Begin the repayment process — After about a month it should be time to start paying back your loan balance. Be sure to make all your payments on time to avoid damage to your credit score as well as repossession of your vehicle.
Eligibility Requirements for Online Title Loans
To qualify, typically you need a fully paid-off vehicle with a lien-free title, proof of income, and residency.
Many bad credit online lenders are able to electronically receive documents and process them online. The documents most online title loan lenders require are:
- Qualifying Photo ID — Online title loan lenders usually require government-issued photo identification, such as a driver’s license, passport, or military ID.
- Free-and-Clear Car Title — Title loan borrowers must give lenders their vehicle title for the duration of their loan. During this time, the lender will sign onto the car title as a lienholder.
- Vehicle Photos — Some lenders for title loans will accept photos of a borrower’s vehicle in lieu of an in-person inspection.
- Proof of Income — To prove they have sufficient income to repay their loan, borrowers must show proof of income with documents such as a paystub, bank statement, or tax statement for title loans.
- Proof of Residency — Borrowers can prove where they live by providing documents like a lease agreement, mortgage statement, or other important bills/documents containing both the borrower’s name and address.
- Bank Account Information (sometimes) — Some lenders require bank account information so they can send approved funds via direct deposit.
- Personal or Professional References (sometimes) — It’s also not uncommon for lenders to request that borrowers include personal references for title loans online.
While CreditNinja doesn’t offer no credit check title loans, we can provide an arguably safer and more reliable alternative! And the best part is, you won’t need to have a perfect credit score. CreditNinja designs their installment loans to help borrowers with less-than-perfect credit, without requiring them to offer up a valuable asset—like a car—to be considered.
Tips for Fast Loan Approval and Quick Funding
A few tips that may help you get faster loan approval and quick title loan funding include:
- Ensure all documents are ready — Gather your documents before you apply to help your application get approved faster.
- Double-check application details — Before you click “submit application” double-check your information and make sure everything is correct. It would be a shame for your application to get denied because of a simple clerical error!
- Submit clear, high-quality photos of your vehicle — If your lender allows you to send in photos instead of taking in your car for an in-person vehicle inspection, be sure to send good quality photos to the lender. Take multiple photos of your car from various angles so the lender has an accurate depiction of what it looks like.
- Apply during business hours — While you can submit your application at any time, applying during business hours increases your chances of receiving money right away.
- Opt for direct deposit — Opting for direct deposit ensures that your approved loan amount is delivered to your bank account ASAP.
- Provide consistent contact information — Make sure all your personal information matches up. For example, the address listed on your driver’s license should match the address you listed in your application.
- Consider pre-approval options — Look out for pre-approval options that may help you skip a few steps of the application process and possibly receive your money faster.
- Maintain a good communication channel — Make sure all the contact information you give is accurate and current so you can communicate with your lender.
- Check for any additional requirements — Thoroughly review your application before you submit it to ensure you’ve met all the appropriate requirements.
What CreditNinja Loan Customers are Saying
CreditNinja has helped more than 250,000 people find quick and easy financing options. Check out what some of those people have to say about their experience with CreditNinja personal loans!
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They made me feel like just another Ninja. Not singled out. Filled out app, got a response, read over privacy papers ,terms and conditions, repayment options and then signed documents and later that night the funds were in my account. Pretty straight forward. I will recommend the Ninjas definitely. Thanks y'all.
– Kevin |
What made my experience great was that I was able to receive help with covering my bills and I was able to fix my truck that I drive every day to work. And if I ever need help again I will come back to CreditNinja as they helped where others didn't. – Gary |
There was multiple Internet glitches on my side and every time I called the 800 line the reps from the company walked me through every step of the way friendly helpful clear communication is how I would describe my experience thank you ninja’s and thank you, Credit ninja – Jason Fusco |
Online Title Loans FAQs
How much can I borrow on a title loan?
Loan amounts for personal loans are typically based on the equity in the borrower’s vehicle. The more the borrower’s car is worth, the more money they may get approved for. While borrowers may access high loan amounts with title loans, the high interest rates and brief repayment terms often make them a stressful form of funding. CreditNinja personal loans, on the other hand, come with loan amounts ranging up to $5,000 as well as flexible repayment plans and competitive APRs.
Can you car be repossessed with a title loan?
Absolutely. When borrowers sign up for title loans, they sign away partial ownership of their vehicle to the lender. This puts borrowers who miss payments or default on their title loans are at risk of having their vehicle repossessed by the lender. Many consider CreditNinja personal loans a safer option over title loans because they don’t require any collateral at all.
Can I get a title loan online with bad credit?
Yes. Title loan lenders usually care more about the equity in the borrower’s vehicle over their credit score or past financial history. CreditNinja personal loan options also have flexible credit approval, except borrowers don’t have to put up their car as collateral in order to get approved for a loan.
Can I get a title loan on a financed car?
No. Borrowers must have a free-and-clear vehicle title in order to qualify for auto title loans. But, some online title loan companies are willing to grant increased loan amounts so borrowers can pay off their vehicle and ultimately qualify for a title loan. While this may seem convenient, it also puts the borrower at risk of locking themselves into a loan they cannot afford to repay.
Can I drive my car while I have the title loan?
Usually. Borrowers are typically able to keep their car while they pay back their car title loans. However, should the borrower miss a certain amount of payments or default on their loan, the lender has the right to repossess the vehicle.
Still Have Questions? Contact CreditNinja Today
People all over the U.S. use CreditNinja personal loans to take care of other debts, pay rent, cover vehicle maintenance, and more. Whatever your financial emergency is, CreditNinja wants to help you out. Check out our easy online application and see how much money you could get today!
References:
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