Funding options for online title loans seem to change multiple times a year. As an example, in the last two years we’ve seen many finance companies exit the lending industry. We’ve also seen states and the federal government increase regulations on firms that provide online title loans. There used to be many large companies that provided pink slip financing. 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 in lenders. We went from over 45 states that authorized online title loans to 23 states. As we check back on this story, 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 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 need an online title loan. 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 online 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 borrow money from a friend. Here’s a good resource for people 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. Online equity financing 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 options on the table that may change this process moving forward. There is car equity financing in process and funded throughout the country. That’s why it’s so important to stay on top of the most recent changes to 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 among 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.