In life, problems can arise when you least expect them. Events such as car accidents, medical emergencies, or the sudden loss of a job can put a strain on your finances. In times like these, it’s important to know where you can go to get the cash you need to make ends meet.
Some people might think the only way to get fast cash is to sell their belongings, but that’s not the case. If you own a vehicle, you don’t need to sell it to get cash to cover your unexpected expenses. Instead, you can use your vehicle as collateral to borrow money through a title loan.
If you’ve never taken out a title loan before, you may have a lot of questions about the process. How can I get a loan with my car title? How much can I borrow by using my car as collateral? Here’s everything you need to know:
What Are Title Loans?
Title loans are not traditional personal loans. A title loan is a secured loan, which means it is backed by collateral. To obtain a title loan, you must use the title to your vehicle as collateral.
Title loans offer a number of benefits. Title loans are typically processed faster than traditional personal loans, which is why they’re perfect for people who need cash as soon as possible.
It’s also much easier to qualify for a title loan than it is to qualify for a traditional personal loan. Because a title loan is secured by collateral, your credit is not the only factor that is taken into consideration when determining your eligibility. Title loan companies also consider other factors such as the value of your vehicle and your ability to repay the loan. For this reason, you may qualify for a title loan even if you don’t qualify for a traditional personal loan due to your credit.
What Happens When You Use Your Car As Collateral for a Loan?
Before applying for a title loan, it’s important to understand what will happen to your vehicle if you choose to use it as collateral.
You won’t have to hand over your keys if you are approved for a title loan. You can continue to drive your vehicle while you make payments on your loan. However, the title loan company will either hold onto your title or put a lien on it until your loan has been completely paid off. At this point, the title loan company will return your title or remove the lien from it.
In most cases, your car will not be repossessed unless you fail to repay your loan. In this case, the title loan company has the right to take possession of your vehicle to satisfy your debt.
Can You Use Your Car As Collateral If It’s Not Paid Off?
Most people can’t afford to pay for a vehicle in cash, so they take out an auto loan to cover the cost instead. If you’re still making payments on your vehicle, you may wonder whether this will impact your eligibility for a title loan.
You may qualify for a title loan even if you are still making payments on your vehicle. However, you must have equity in your vehicle to qualify, which means your vehicle must be worth more than the amount you still owe on it.
In general, many people who have a few payments left on their auto loan are approved for title loans. Everyone’s financial situation is unique, so it’s best to contact your lender to find out if your auto loan will impact your eligibility.
Can You Use Your Car As Collateral If Someone Else’s Name is on the Title?
You cannot use a vehicle as collateral for a title loan unless you own it, which means your name is on the title. However, your name does not need to be the only name on the title. If you share ownership of a vehicle with another person, you can use this title as collateral even though someone else’s name is on it with yours. All that matters is that your name is on the title.
How Much Can You Borrow By Using Your Car As Collateral?
How much you are approved to borrow will depend on several factors, including:
- Your vehicle’s value: Your vehicle is used as collateral, so your lender needs to know how much your car is worth before determining how much you can borrow. Title loan companies calculate a vehicle’s value based on its make, model, year, condition, mileage, and trim level.
- Your equity: 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 as a title loan. Title loan companies typically allow you to borrow up to a certain percentage of the value of your equity.
- Your income: Your lender will evaluate your income before determining how much you can borrow. This is to ensure you are not borrowing more than you can afford to repay.
In general, title loans can range from $2,510 to $50,000.
Will You Need to Bring Your Car In to Get a Title Loan?
If you apply for a title loan, your lender will need to calculate the value of your vehicle at some point during the application process.
This valuation process varies depending on the title loan company. Some title loan companies ask applicants to bring their vehicle in for an inspection. Other companies will arrange to have someone travel to their home, workplace, or another location to inspect your vehicle. There are also title loan companies that allow applicants to submit photos of their vehicle instead of getting it inspected.
Talk to your title loan company to learn more about how they calculate the value of vehicles. This way, you will know exactly what to expect during the application process.
How to Get A Loan With Your Car Title
Put your vehicle to good use by using it as collateral to get a title loan. Follow these steps to apply for a title loan from I Need Cash Now:
- Contact our loan officers. There are two ways to get in touch with our loan officers. You can either call us directly at 1-855-713-6522 or submit your information using the form on our website.
- Get a free quote. It only takes a few minutes to get a free quote. All you need to do is provide the loan officer with some basic information about your vehicle. The quote will include an overview of your loan, including but not limited to the amount you are approved to borrow and the interest rate.
- Finalize your loan. If you are happy with your quote, finalize your loan by signing and submitting the required documentation. Work with your loan officer to ensure you sign and submit everything that is needed to process your application.
- Get your cash. All that’s left for you to do is collect your cash. You can either pick it up in person or have it sent to you via check or wire transfer.
Don’t wait any longer to borrow the money you need. Contact us today to start the title loan application process.