Sometimes, cutting back on expenses and carefully managing every dollar of your budget isn’t enough. If money is still tight, you may need to consider other ways to get the fast cash you need to make ends meet. One option is applying for a title loan, which is a type of secured loan. How do these loans work? Is it easy to get title loans? Here’s what you need to know:
What Are Title Loans?
A title loan, or car title loan, is a secured loan that is backed by your vehicle. In other words, you must use the title to your vehicle as collateral to borrow money through a title loan. Some lenders also accept titles to motorcycles or RVs as collateral.
You don’t have to give the lender your vehicle in exchange for the cash. You can continue to drive your vehicle while you make payments on the loan. However, the lender will either put a lien on your title or hold onto your title until you have finished paying off your loan.
When your loan is completely paid off, the lender will remove the lien or give your title back. But if you fail to repay your loan, the lender may take possession of your vehicle to satisfy your remaining debt.
Am I Eligible for A Title Loan?
If you need fast cash, the first thing you need to determine is whether you are eligible for a title loan. The eligibility requirements for a title loan are very different from the eligibility requirements for a traditional personal loan. You may be eligible for a title loan if you meet these requirements:
- 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.
- Your vehicle must meet your lender’s minimum value requirement.
- You are willing to consent to a credit check.
- You have a reliable source of income.
Each lender may have additional requirements that borrowers must meet to qualify for a title loan. For this reason, it’s best to contact your lender directly to find out if you are eligible.
What Do I Need to Apply for A Title Loan?
If you apply for a title loan, you won’t have to spend weeks filling out paperwork or gathering documents for your lender. However, you are required to submit certain documents during the title loan application process, including:
- The title to your vehicle
- Driver’s license
- Proof of income (pay stubs, bank statements, tax returns, etc.)
- Proof of residence (driver’s license, utility bills, lease agreement, etc.)
- Proof of auto insurance
There’s no need to panic if you can’t find the title to your vehicle. Let your loan specialist know you are having trouble locating your title. Your loan specialist can guide you through the process of getting a replacement title so you can complete your application.
There is one more thing you will need to do to apply for a title loan. Because your vehicle is used as collateral, the lender will need to know how much your car is worth when determining your eligibility. For this reason, the lender will need to inspect your vehicle during the application process. Your lender will calculate its resale value by evaluating its make, model, year, condition, trim level, and mileage.
Can I Get A Title Loan Without Proof of Income?
Your lender will ask you to submit an acceptable form of proof of income when applying for a title loan. This allows the lender to verify that you have a reliable source of income that you can use to repay the loan.
Some borrowers assume that “proof of income” means “proof of employment,” but that’s not the case. You are not required to submit proof of employment when applying for a title loan. You can get approved for a title loan even if you are unemployed as long as you have another source of income.
For example, if you receive veterans’ benefits, you may qualify for a title loan regardless of whether you are currently employed.
In short, being unemployed does not automatically make you ineligible for a title loan.
Can I Get A Title Loan With Bad Credit?
People with less-than-perfect credit may find it difficult to get approved for traditional personal loans. This is because borrowers typically must meet a minimum credit score requirement to qualify for a traditional loan. However, the same rules don’t necessarily apply for title loans.
Unlike traditional personal loans, title loans are secured by collateral. This means your eligibility for a title loan is not based solely on your credit. It’s true that your lender will consider your credit when determining your eligibility for a title loan, but they will also consider other factors, including the value of your vehicle and your ability to repay the loan.
The bottom line is most credit types are accepted by title lenders. A title loan might still be a good option for you even if you weren’t approved for a traditional personal loan due to your credit.
How Fast Can You Get A Title Loan?
How quickly you receive your title loan depends on the turnaround time for submitting all of your paperwork. If you have everything ready and submit it right away, you can get your title loan approved in as little as 48 hours.
If you want to ensure your title loan application is processed quickly, make sure you work with your loan specialist to sign the appropriate paperwork and submit the required documents right away. Your application cannot be processed until you have completed these steps. The sooner these documents are signed and submitted, the sooner you can get your cash.
How to Apply for A Title Loan
Applying for a title loan from I Need Cash Now is simple. Here’s what to do:
- Fill out the form on our website or call 855-713-6522 to speak to one of our loan specialists. Be prepared to provide your loan specialist with some basic information about your vehicle, including the make, model, year, mileage, and trim level.
- Get a quote. Your loan specialist will tell you if you qualify for a title loan and if so, how much you will be able to borrow. Review the details of this quote to ensure you are satisfied with the terms of the loan. Your loan specialist will be available if you have any questions about your quote.
- Finalize your loan. If you agree to the terms, the next step is finalizing your loan by signing paperwork and submitting documents to your lender. Your loan specialist will explain what documents you need to submit and the best way to submit them.
- Get your cash. There are three ways to collect your cash. You can get it sent to you via check or wire transfer or arrange to pick it up at one of our partners’ convenient locations.
Reach out to our loan specialists today to start the process of applying for a title loan.