Medical emergencies, car accidents, home repairs, and other events can lead to sizable unexpected expenses. As a result, even the most careful budgeter may come up short on cash at some point in their lives. If you’re in this situation, it’s crucial to know where to turn to get the fast cash you need to make ends meet.
Many people who need fast cash rely on title loans. Title loans are not like traditional personal loans. So before you start visiting car title loan places near you, it’s important to learn more about this unique type of loan. Here’s everything you should know about title loans:
How Do Title Loans Work?
A title loan is a type of secured loan, which means it is supported by collateral. If you want to borrow money with a title loan, you must use the title to your vehicle as collateral. This doesn’t mean you will need to sacrifice your car to borrow money, though. You can continue to use your car while you make payments on your loan. Your lender will either hold onto your title or put a lien on it until your loan has been repaid.
If you comply with the terms of your loan agreement, you will remain in possession of your vehicle. However, if you fail to repay your loan, the lender has the right to take possession of your car to satisfy your debt.
Who is Eligible for a Title Loan?
Eligibility requirements can vary depending on the title loan company. In general, though, you may be eligible 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 listed on the title.
- You have equity in your vehicle.
- Your vehicle meets your lender’s minimum value requirement.
- You are willing to consent to a credit check.
- You have a reliable source of income that you can use to repay your loan.
It only takes a few minutes to find out if you qualify for a title loan. Contact your title loan company to see if you meet their unique requirements.
What Will You Need to Apply for a Title Loan?
You will be asked to submit a number of documents during the title loan application process. You may want to prepare by gathering these documents:
- Your driver’s license or another type of government-issued ID
- The title to your vehicle
- Proof of residence such as your driver’s license, a recent utility bill, lease agreement, or mortgage statement
- Proof of income such as pay stubs, bank statements, or tax returns
- Proof of auto insurance
Don’t panic if you can’t find the title to your vehicle. Let your title loan company know about your situation right away. They can help you obtain another copy of your title so you can complete your title loan application.
Do You Need to Be Employed to Qualify for a Title Loan?
You must have a reliable source of income to qualify for a title loan. Some people assume that this means they must be employed to qualify for a title loan, but that’s not necessarily true.
It is possible to qualify for a title loan even if you are unemployed. In this case, you will simply need to prove that you have another reliable source of income that you can use to repay your loan.
Some examples of other sources of income may include veterans’ benefits, disability benefits, retirement benefits, alimony, or rental income.
How Much Can You Borrow With a Title Loan?
Title loan companies can lend anywhere from $2,510 to $50,000 per loan. The amount you are approved to borrow will depend on these factors:
- Your income: The title loan company will evaluate your income during the application process. This way, they won’t allow you to borrow more than you can afford to repay.
- Your car’s resale value: Your car is used as collateral, so the title loan company must know how much it is worth when determining how much you can borrow. To calculate your car’s resale value, the title loan company will assess its make, model, year, condition, mileage, and trim level. You cannot borrow more than your vehicle is worth.
- Your equity: You cannot borrow more than the value of your equity in your vehicle. To calculate your equity, subtract the amount you owe on it from its resale value.
- Where you live: Some states have laws that establish minimum and maximum amounts for title loans. If you live in a state with these laws, they could impact how much you are approved to borrow.
What Are the Benefits of Title Loans?
There are a number of reasons why you should consider taking out a title loan to get the fast cash you need. Title loans offer many benefits, including:
- Fast processing times. Title loans are usually processed faster than traditional personal loans, so you can get the money you need as soon as possible.
- Easy application. You won’t need to jump through hoops to submit a title loan application. The entire process is simple and straightforward.
- Easy to qualify for. You may qualify for a title loan even if you don’t qualify for a traditional personal loan.
- Most credit types accepted. You will need to consent to a credit check during the application process. However, credit is just one factor that is taken into consideration when determining your eligibility. You don’t need a perfect credit score to qualify. In fact, title loan companies typically accept most credit types.
- No restrictions on spending. There are no rules regarding what you can and cannot do with the money you borrow. You can spend the money as you see fit.
How to Apply for a Title Loan
Now you should have the information you need to determine whether a title loan is right for you. The good news is you don’t need to visit multiple car title loan places to submit an application. In fact, you don’t even need to leave your house. Follow these steps to apply for a title loan from I Need Cash Now:
- Contact us. Start the process by contacting our loan specialists. You can either call 1-855-713-6522 or submit your information using the form on our website. If you choose the latter option, a loan specialist on our team will reach out to you as soon as possible.
- Get a loan estimate. It only takes a few minutes to get a loan estimate from our team. To prepare this estimate, your loan specialist will need to get some information about your vehicle, including its make, model, year, mileage, and condition. Be prepared to provide this information.
- Finalize your application. If you’re happy with the terms of your loan estimate, you can finalize your title loan application by signing and submitting the required documentation. Your loan specialist will explain what documents you need to sign and submit during this stage of the process.
- Collect your cash. All that’s left 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.
The cash you need to make ends meet is just a few steps away. Contact us now to start the title loan application process.