Financial problems can arise when you least expect them. Medical emergencies, car accidents, home repairs, or other events can lead to additional expenses that you simply don’t have room for in your monthly budget. If this happens to you, it’s important to know where to turn to for the help you need.
If you own a vehicle, you may qualify for a title loan, which is a type of loan that allows you to borrow money by using the title to your vehicle as collateral. You won’t have to give up your car, but you will need to agree to let the lender put a lien on your title or hold onto it until your loan has been paid off.
Before you start searching for a “title cash loan near me,” you may want to know how much you will be able to borrow if you are approved for a title loan. Here’s what you should know:
What Factors Impact How Much I Can Borrow With a Title Cash Loan Near Me?
The title loan company will take a number of factors into consideration when determining how much you can borrow with a title cash loan. Some of these factors include:
- Type of Vehicle
- Vehicle’s Resale Value
- Your Equity
- Your Income
- Your Location
Type of Vehicle
Title loan companies accept many different types of vehicles as collateral for title loans, including:
- Sedans
- SUVs
- Pickup trucks
- Vans
- Coupes
- Convertibles
- RVs
- Motorcycles
The type of vehicle you choose could impact how much you are able to borrow with a title loan. For example, some lenders cap motorcycle title loans, which means you may not be able to borrow as much if you use a motorcycle as collateral instead of your personal vehicle. However, if you use an RV as collateral, you may be approved to borrow more since these vehicles are typically worth more than standard passenger vehicles.
Vehicle’s Resale Value
Because your vehicle is used as collateral to secure your title loan, the title loan company will need to know how much it is worth prior to determining how much you can borrow. For this reason, you may be asked to bring your vehicle in for an inspection when you apply for a title loan. However, some lenders will allow you to submit photos of your vehicle instead of bringing it in for an inspection. Talk to your lender to learn more about their inspection process.
Title loan companies will calculate your vehicle’s resale value based on many factors, including its make, model, year, condition, mileage, and trim level. You cannot borrow more than the resale value of your vehicle. In fact, most title loan companies will only allow you to borrow up to a certain percentage of your vehicle’s resale value.
Your Equity
If you are still paying off your auto loan, the value of your equity in your vehicle will also impact how much you are able to borrow. Your equity is the difference between your car’s resale value and the amount you still owe on your auto loan.
For example, say your vehicle is worth $20,000 and you owe $8,000 on it. This means you have $12,000 of equity in your vehicle ($20,000-$8,000=$12,000).
You must have equity in your vehicle to qualify for a title loan. If your equity is negative, which means you owe more than your vehicle is worth, you cannot use your vehicle as collateral to secure a title loan.
Your title loan company will not allow you to borrow more than the value of your equity, which is why it’s important to know how much yours is worth.
Your Income
You will be asked to submit proof of income such as pay stubs, bank statements, or tax returns when you apply for a title loan. The title loan company will review these documents as part of the process of determining how much you can borrow.
Submitting proof of income gives your lender the chance to confirm that you have a reliable source of income that you can use to repay your loan. It also gives the title loan company the chance to calculate how much you can afford to repay based on your current income. The results of this evaluation will impact how much you are approved to borrow.
Your Location
Your state of residence can impact how much you are approved to borrow with a title loan, too. This is because some states have laws that set minimum and maximum title loan amounts.
For example, Illinois has set a maximum title loan amount of either $4,000 or 50% of the borrower’s monthly income. Mississippi, on the other hand, has established a maximum of $2,500 per title loan.
Other states that have similar laws in place include Missouri, New Mexico, New Hampshire, Tennessee, Wisconsin, and more.
Title loan companies must comply with these laws when issuing loans to residents of these states. If you live in one of these states, these laws could impact how much you can borrow.
How Can I Find Out How Much I Can Borrow With a Title Loan?
You don’t need to crunch numbers to find out how much you can borrow with a title loan. Fortunately, it only takes a few minutes to find out how much you may be approved to borrow from I Need Cash Now. Here’s what to do:
- Contact our loan specialists. There are two ways to get in touch with our team. You can either call us directly at 1-855-713-6522 or submit your information using the form on our website. If you choose the latter option, someone on your team will be in touch with you shortly.
- Request a loan estimate. You can get a free loan estimate in a matter of minutes. All you need to do is provide your loan specialist with some information about your vehicle, including its make, model, year, mileage, and condition.
Your loan specialist will prepare a free loan estimate based on the information you provide. This loan estimate will tell you how much your car is worth, how much you may be able to borrow, and at what interest rate.
What Steps Should I Take After Getting a Title Loan Estimate?
You are not obligated to get a title loan if you request a free title loan estimate. However, if you are satisfied with the terms of your free title loan estimate, you can choose to move forward with the application process. Here’s what you will need to do to obtain a title loan from I Need Cash Now:
- Sign and submit the required documentation. Your loan specialist will explain what documents you need to sign and submit to complete your application. The sooner you sign and submit these documents, the sooner your application can be processed and approved.
- Collect your cash. Your money will be available soon after your application is approved. You can choose how you would like to receive your cash. You can either pick it up in person or ask to have it sent directly to you via check or wire transfer.
That’s all you need to do to secure the cash you need from a title loan. Don’t wait any longer–start the application process today.
