Many people who need cash in a hurry apply for traditional personal loans. However, borrowers must meet strict eligibility requirements to qualify for traditional personal loans, so it may not be easy to get approved. Plus, the process of applying for and finding out if you are approved can take days, and sometimes even weeks. These are some of the reasons why traditional personal loans may not be ideal for people who need fast cash.
Fortunately, this isn’t the only option available. If you own or partially own a vehicle, you may be able to get a loan with your car title. Who qualifies for a title loan? How much money will you be able to borrow if you are approved? Here’s what you need to know about title loans:
How Do Title Loans Work?
Even though the title is used as collateral, the vehicle will remain in your possession while you make payments on your loan, so you can continue to drive it as you normally would. Your lender will either put a lien on the title or hold onto it until your loan has been paid off in full.
This gives the lender the authority to take possession of your vehicle in the event you fail to repay your loan. But if you comply with the terms of your agreement and pay off your loan, you will not lose possession of your car.
How Do You Qualify for A Title Loan?
You may be able to get a loan with your car title if you meet these conditions:
- You are 18 years of age or older.
- You own or partially own a vehicle (your name must be on the title, even if it is not the only name on the title).
- You have a reliable source of income.
- You have equity in your vehicle.
Your title lender may have additional eligibility requirements. To find out if you qualify, contact your lender.
What Documents Do You Need to Apply for A Title Loan?
You will need to submit certain documents to your title lender during the application process, including:
- The title to your vehicle
- Your driver’s license or another form of ID
- Proof of residence (utility bills, mortgage, lease agreement, or driver’s license)
- Proof of income (bank statements, tax returns, pay stubs, etc.)
- Proof of auto insurance
Your lender will also need to examine your vehicle before determining whether you are eligible for a title loan. Some lenders may accept photos of your vehicle, whereas others may require you to bring your vehicle in for an inspection. Talk to your lender to find out exactly what you need to do to ensure your application is processed as quickly as possible.
Can You Get A Title Loan If You’re Unemployed?
The sudden loss of a job can put a strain on your finances, but it can also make it harder to get approved for a traditional personal loan. However, you may still qualify for a car title loan if you are unemployed.
You will need to submit proof of income when you apply for a title loan, but you don’t need to prove that you are earning an income from a steady job to get approved. You can get approved for a title loan with other sources of income, including workers’ compensation benefits, Social Security benefits, rental income, or veterans’ benefits.
How Much Money Can I Get From A Title Loan?
Title loans can vary from $2,510 to $50,000. The amount you can borrow from a title loan depends on several factors, including:
- How much your car is worth: Because your car is used as collateral, it’s resale value plays an important role in determining how much you can borrow.
- Your equity in your vehicle: Your lender will calculate your equity by subtracting the amount you owe on it from its resale value. You must have equity in your vehicle to qualify for a title loan.
- Your income: Your lender will assess your income to determine how much you can afford to repay.
It only takes a few minutes to find out how much you are approved to borrow. Contact your lender to get a free quote.
Does A Title Loan Go On Your Credit?
Title lenders report information related to your loan to the three national credit bureaus: Experian, Transunion, and Equifax. This means the loan and your payment history will appear on your credit report.
Taking out a title loan could also impact your credit score. Your payment history has a big impact on your overall credit–it accounts for about 35% of your total score. For this reason, making consistent, on-time payments on your title loan could improve your credit score in the long run.
What Are the Benefits of Car Title Loans?
Borrowers who are short on cash turn to car title loans for a number of different reasons, including:
- Simple application process: Applying for a title loan is easy. In fact, the entire process can usually be completed over the phone or online.
- Easier to get approved: Title loans are secured loans, which means your credit is not the only factor that is taken into consideration when determining your eligibility. Title lenders also consider the value of your vehicle and your income. Because of this, it is generally easier to get approved for a title loan than a traditional personal loan.
- No prepayment penalties: Some title lenders do not charge prepayment penalties, which means you won’t incur additional fees if you choose to pay your loan off early.
- Keep your car: Your car will remain in your possession while you make payments on your title loan.
How to Apply for A Car Title Loan
Take the first step toward securing the cash you need by applying for a title loan with I Need Cash Now. Here’s what to do:
- Start your application. Call 855-713-6522 or submit the form on our website to get in touch with one of our loan specialists. During this conversation, your loan specialist will ask you to provide some basic information to determine if you qualify for a title loan.
- Find out if you are approved. Your loan officer will determine if you are approved and if so, how much you can borrow. Your loan officer can also help you understand the other terms of your loan, including the interest rate and required payment.
- Sign and submit paperwork. To finalize your loan, you will need to submit the required documentation to your lender. You will also be asked to sign several forms.
- Collect your money. Your funds will be available shortly after your application has been approved. You can either pick up the cash at one of our partners’ convenient locations or have it sent directly to you via check or wire transfer.
Your loan specialist will be available to guide you through the entire process from start to finish.