Life is unpredictable. No matter how carefully you manage your budget, an unexpected trip to the hospital, loss of employment, or other type of emergency could throw a wrench in your financial plans. Some people turn to their family or friends for help in situations like these. But there is another way to get cash fast: applying for a title loan.
A title loan is a secured loan that is backed by your car. In other words, you can use the title to your vehicle as collateral to get cash through a title loan. You won’t have to give up your car or hand over the keys to get the cash you need. In fact, you can continue to drive your vehicle while you repay your loan. Your lender will put a lien on your title, which will be removed once your loan has been completely paid off.
You won’t need to wait weeks to find out if you can get cash through a title loan. Title loan applications are typically processed faster than applications for other loans, which is why they are appropriate for borrowers who need cash fast. If you’re ready to apply for a title loan, follow these simple steps:
Contact Your Title Lender
Initiate the title loan application process by contacting a title lender. Most title lenders allow you to start the process over the phone or online, but some might require you to visit their office in person.
During this initial conversation, you will need to provide basic information about your vehicle, including its make, model, year, mileage, and trim level. You may also be asked questions about your income and the amount you would like to borrow.
Your loan officer will determine if you qualify for a title loan based on the information you provide. For this reason, it is important to provide accurate information.
Review Your Loan Agreement
Your loan officer will tell you if you qualify for a title loan. If you do, the next step is learning about your loan agreement.
Your loan officer should go over the details of your loan, including how much you are approved to borrow and at what interest rate. Feel free to ask your loan officer questions to make sure you understand the terms of the agreement. Some questions you may want to ask include:
- How much are my payments?
- How often do I need to make payments?
- What is the interest rate on my loan?
- How long do I have to repay the loan?
- Are there any additional fees?
- Can I pay my loan off early?
Your loan officer will be happy to answer your questions to ensure you are comfortable with the terms of the loan. Once you’ve reviewed your loan terms, it’s time to accept the offer.
If you are satisfied with the terms of the loan, if you have not yet submitted the document, you must start submitting the required documentation to your lender. Your loan officer will explain what documents you need to submit and the best way to submit them. Your title lender may allow you to submit these documents via email, fax, or text message photos.
The documents you are required to submit could vary depending on your lender. In general, title lenders require borrowers to submit:
- The title to the vehicle
- Proof of auto insurance on the vehicle that is being used as collateral
- Proof of income such as pay stubs, tax returns, or bank statements
- Proof of residence such as a driver’s license, utility bills, or lease agreement
- Proof of identification such as a driver’s license or another form of government-issued ID
- Photos of the vehicle that is being used as collateral
If you added a co-signer to your loan, they will also need to submit certain documents during this step of the process. Talk to your lender to find out what your co-signer needs to provide.
After your documentation has been submitted and verified, your loan officer might ask you to sign several documents to finalize your loan. The sooner you complete this step, the sooner you can get the cash you need.
The final step in the process of taking out a title loan is collecting your cash. Most of the time, you will have access to your cash shortly after you are approved for a title loan. Talk to your lender to find out how you can get your cash as soon as possible. Your title lender may send you a check, wire the money, or ask you to pick it up in person.
That’s all there is to it. The process of applying for a title loan is simple and straightforward, so you won’t need to jump through hoops to get cash fast.