If you’re in need of fast cash, a title loan may be the solution. A car title loan is a secured loan that allows you to use the title to your vehicle as collateral. You can still drive your vehicle as you normally would while you make payments on your title loan. However, the lender will put a lien on your title or hold onto your title until your loan has been completely repaid.
Many people rely on title loans to get the cash they need in a hurry. Why? Title loans are processed quickly, which means borrowers don’t need to wait as long to secure their cash. You can also apply for title loans online, which makes the entire application process easy and convenient.
Before you start searching for the best online title loans, it’s important to understand how much you will be able to borrow if you are approved. Here’s what you need to know:
Am I Eligible for Online Title Loans?
The eligibility requirements for title loans are different from the eligibility requirements for traditional personal loans. This means you may qualify for a title loan even if you aren’t eligible for a traditional personal loan.
Eligibility requirements can vary from lender-to-lender, but in general, you may qualify for a title loan if you meet these conditions:
- You are at least 18 years old.
- You own or partially own a vehicle, which means your name is on the title.
- You have equity in your vehicle.
- You have a reliable source of income.
- You will consent to a credit check.
- Your vehicle meets your lender’s minimum value requirement.
If you are eligible, you may want to start gathering the documents you will need to submit during the application process. Be prepared to provide the lender with:
- The title to your vehicle
- Driver’s license
- Proof of income (pay stubs, bank statements, tax returns, etc.)
- Proof of residence (driver’s license, mortgage statement, utility statement, etc.)
- Proof of auto insurance
Gathering these documents in advance will make the application process even easier.
How Much Can I Borrow From A Title Loan?
Title loan companies take many factors into consideration when determining how much you can borrow, including:
- Your Vehicle’s Resale Value
- Your Equity
- Your Ability to Repay the Loan
- State Laws
Your Vehicle’s Resale Value
Your vehicle’s value is one of the main factors that will impact how much you are able to borrow with a title loan. This is because your vehicle is used as collateral to support the loan, so it’s important for your lender to know how much it is worth.
Title loan companies consider many factors when calculating the resale value of a vehicle, including the vehicle’s make, model, year, mileage, and condition. The trim level, which is the version of a vehicle that is equipped with specific features, will also impact its valuation.
If you apply for a title loan, the lender may need to inspect your vehicle to calculate its value. Some lenders will ask you to bring your vehicle in, whereas others send an inspector to you to make the process as convenient as possible. A lender may even let you submit pictures of your vehicle in lieu of an inspection. Discuss this with your lender after submitting your application so you know what to expect.
You cannot borrow more than your vehicle is worth. In fact, most lenders will only allow you to borrow up to a certain percentage of your vehicle’s resale value.
Another important factor that your lender will consider when determining how much you can borrow is your equity in your vehicle.
Equity is defined as the difference between your vehicle’s resale value and the amount you still owe on it. You must have equity in your vehicle to qualify for a title loan. Furthermore, you cannot borrow more than the value of your equity.
For example, say your vehicle is worth $10,000 but you still owe $3,000 on it. This means you have $7,000 in equity, so you may qualify for a title loan. If you are approved, you may not be able to borrow more than $7,000.
However, if your vehicle is worth $10,000 but you still owe $12,000 on it, you do not have equity, which means you may not qualify for a title loan.
Your Ability to Repay the Loan
Title loan companies also consider your ability to repay the loan when deciding how much you can borrow.
Your lender will ask you to provide proof of income during the title loan application process. This allows the lender to confirm you have a reliable source of income you can use to make payments on your loan. Your lender will analyze this information to determine how much you can afford to repay. This analysis will impact how much you are approved to borrow.
It’s important to note that you do not need to be employed to qualify for a title loan. All you need is a reliable source of income, which may or may not come from a regular job. You can qualify for a title loan with other sources of reliable income, including disability benefits, retirement benefits, alimony, and veterans’ benefits.
Some states have laws that establish minimum and maximum title loan amounts. For example, in the state of New Hampshire, title loans cannot exceed $10,000. In New Mexico, however, title loans cannot exceed $2,500.
Title loan companies must comply with these state laws. If you live in one of these states, these laws will impact how much you are able to borrow from a title loan.
Figuring out how much you are eligible to borrow is complicated. Fortunately, your title loan company can help. All you need to do is provide some basic information about your vehicle, including its make, model, year, mileage, and condition. It only takes a few minutes to get your free quote.
How to Apply for the Best Online Title Loans
- Get in touch with a loan officer. Call 1-855-713-6522 to speak to a loan officer directly. You can also submit your information using the form on our website. If you choose this option, a loan officer will contact you as soon as possible.
- Find out if you are approved. Your loan officer will review your information and tell you if you are eligible for a title loan. You will also find out how much you can borrow and at what interest rate.
- Finalize your loan. If you are satisfied with your quote, you will need to sign and submit documentation to your lender. Your loan officer will explain what documents you need to provide to complete this step in the process.
- Get your cash. Your money will be available shortly after your application is approved. Once it’s ready, pick up your cash in person at one of our convenient locations or arrange to have it sent to you via check or wire transfer.
You’re only four steps away from getting the cash you need to make ends meet. Don’t wait any longer–start the online application process now.