In a perfect world, you would never run out of cash when you need it most. But in reality, life is unpredictable. Even if you carefully plan how you will spend every penny of your income, an unexpected expense can throw a wrench in your budget.
If this happens to you, it’s important to know where to turn for the fast cash you need to make ends meet. Many people who are in this situation take out cash loans on car titles to secure the cash they need in a hurry. But what are cash loans on car titles? How can you get one? Here’s what you need to know:
What is a Cash Title Loan?
A cash title loan, which is also known as a car title loan or title loan, is a type of secured loan. If you want to take out a title loan, you must be willing to use the title to your vehicle as collateral. Some lenders also accept titles to motorcycles and RVs.
You won’t lose your vehicle simply because you are using the title as collateral. You can continue to drive your car while you make payments on your title loan. However, the lender will either hold onto the title or put a lien on it until your loan has been completely repaid. Once your loan has been repaid, the lender will remove the lien or give you back the title.
What Happens If I Don’t Pay My Title Loan?
Remember, you won’t need to give your lender the keys to your car in order to borrow money through a title loan. You will be able to drive your vehicle as you normally would while you repay your loan.
But what happens if you don’t pay your title loan? Your vehicle is used as collateral to support your title loan. This means if you fail to repay your loan, your lender has the right to take possession of your vehicle.
This is the only scenario in which you would lose possession of your vehicle as a direct result of taking out a title loan. As long as you comply with the terms of the agreement and repay your title loan, you won’t need to worry about losing your vehicle.
What Do I Need to Get a Title Loan On My Car?
The first step in getting a cash loan on your car title is determining if you are eligible. You may be eligible for a car title loan if you meet these conditions:
- You are at least 18 years old.
- You own or partially own a vehicle.
- You have equity in your vehicle.
- Your vehicle meets your lender’s minimum value requirement.
- You have a reliable source of income.
If you meet these conditions, you may want to apply for a title loan to get the cash you need. Once you apply, the lender will ask you to provide certain documentation. The documentation requirements can vary depending on the lender. But in general, here’s what you should be prepared to submit during the title loan application process:
- Title to your vehicle
- Driver’s license
- Proof of income (pay stubs, bank statements, tax returns, etc.)
- Proof of residence (driver’s license, mortgage, utility bills, lease agreement, etc.)
- Proof of auto insurance
You will also need to give the lender permission to inspect your vehicle. Because your vehicle is used as collateral, the lender will need to inspect it to calculate its resale value. Some lenders require you to bring the vehicle in for an inspection, whereas others may accept pictures of your vehicle instead. Talk to your lender to find out what their inspection process entails.
How Much Cash Can I Get From a Title Loan?
If you’re thinking about getting a title loan, you may be wondering if you will be able to borrow enough money to cover your expenses. You can borrow anywhere from $2,510 to $50,000 with a title loan, depending on where you live. The amount you are approved to borrow will depend on several factors, including:
- Your vehicle’s value: Your vehicle is used as collateral to support your title loan, so its value will impact how much you are able to borrow. Your lender will calculate its value based on its make, model, year, mileage, condition, and trim level.
- Your equity: Equity is the difference between your car’s resale value and the amount you still owe on it. You must have equity in your vehicle to borrow money using a title loan. Furthermore, you cannot borrow more than the value of your equity.
- Your ability to repay the loan: You must have a reliable source of income to qualify for a title loan. During the application process, your lender will evaluate your income to determine how much you can afford to repay. This will impact how much you are approved to borrow.
It only takes a few minutes to find out how much you will be able to borrow with a title loan. All you need to do is contact your lender and provide some information about your income and vehicle to get a quote.
What Are the Benefits of Title Loans?
Title loans offer a number of benefits, including:
- Fast processing times: Title loans are known for their fast processing times. This is why so many people who need fast cash turn to title loans rather than traditional personal loans.
- No prepayment penalties: You won’t be penalized for paying off your loan earlier than expected.
- Most credit types are accepted: Your credit is one factor that is taken into consideration when determining your eligibility, but it’s not the only factor. Because a title loan is a secured loan, the lender will consider several other factors when determining eligibility, including the value of your vehicle and your ability to repay the loan. For this reason, most credit types are accepted.
- Keep your car: You won’t need to sacrifice your vehicle to get the cash you need. You can continue driving your vehicle while you make payments on your title loan.
How Can I Apply for a Title Loan?
- Get in touch with a loan officer. Call 855-713-6522 to speak to a loan officer directly or submit your information using the form on our website. If you choose the latter option, a loan officer will contact you as soon as possible.
- Find out if you qualify for a title loan. The loan officer will ask you to provide some basic information about your vehicle, including its make, model, year, and mileage. Then, the loan officer will tell you whether you qualify for a title loan, and if so, how much you can borrow. You will also learn about other loan terms, including the interest rate and payment.
- Finalize your title loan. If you are satisfied with the terms of your title loan, sign and submit the required paperwork to finalize the agreement. Your loan officer will guide you through this step to ensure you know what needs to be done to complete the processing of your application.
- Get your cash. Your cash will be available shortly after your application has been approved. You can choose to either pick up your cash in person or arrange to have it sent to you via check or wire transfer.
Don’t wait any longer to get the cash you need. Contact our loan officers to start the short and simple application process today.