If you’re short on cash, taking out a title loan might be the solution. However, many people aren’t aware of this option since title loans aren’t as common as other types of loans. Title loans are not like traditional personal loans. To obtain a title loan, you must use the title to your vehicle as collateral. This is because a title loan is a type of secured loan, which means it is supported by collateral.
If you own a vehicle, you may qualify for a title loan. But if you’ve never heard of or taken out a title loan before, you may have a lot of questions about how they work and what you should expect. Here are the answers to some of the most frequently asked title loan questions:
What Happens to Your Vehicle If You Take Out a Title Loan?
Your vehicle is used as collateral to secure your title loan. However, this does not mean that you will have to give up your vehicle in order to borrow money with a title loan.
If you are approved for a title loan, you can continue to drive your vehicle as you normally would while you make payments. Because your vehicle is used as collateral, the title loan company will either hold onto the title or put a lien on it until your loan has been paid off. When you’re finished paying off your loan, the lender will either return your title or remove the lien from it.
You will remain in possession of your vehicle at all times if you comply with the terms of your loan agreement. However, if you stop making payments on your title loan, the lender has the right to take possession of your vehicle to satisfy your debt.
Who is Eligible for a Title Loan?
Title loans are easier to qualify for than traditional personal loans. In other words, you may qualify for a title loan even if you aren’t eligible for a traditional personal loan.
You may be eligible for a title loan if you meet these conditions:
- You are at least 18 years old.
- You own or partially own a vehicle, meaning your name is on the title.
- Your vehicle meets the title loan company’s minimum value requirement.
- You have equity in your vehicle.
- You are willing to consent to a credit check.
- You have a reliable source of income.
Eligibility requirements may vary depending on the title loan company. For this reason, it’s best to contact your lender directly to find out if you are eligible.
What Will You Need to Apply for a Title Loan?
You will be asked to submit a number of documents during the process of applying for a title loan. Here’s what you should be prepared to submit to the title loan company:
- The title to your vehicle.
- Your driver’s license or another type of government-issued ID.
- Proof of residence such as your driver’s license, a recent mortgage statement, or utility bills.
- Proof of income such as recent pay stubs, tax returns, or bank statements.
- Proof of auto insurance.
Your lender may require additional documentation to process your title loan. The sooner you submit the necessary documentation, the sooner you can collect your cash.
How Much Can You Borrow With a Title Loan?
Title loans can range from $2,510 to $50,000 per loan. The amount you are approved to borrow will vary depending on several factors, including:
- Your income: The title loan company will need to see proof of income during the application process. Your lender will evaluate your income to determine how much you can afford to repay.
- Your car’s resale value: The lender needs to know how much your vehicle is worth before determining how much you can borrow. To calculate your car’s resale value, your lender will assess its make, model, year, condition, mileage, and trim level. You cannot borrow more than the value of your vehicle.
- Your equity: If you’re still paying off your vehicle, the value of your equity can 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 it. So if your car is worth $15,000 and you owe $4,000 on it, you have $11,000 of equity in your vehicle ($15,000-$4,000=$11,000). You are typically allowed to borrow up to a percentage of the value of your equity.
Fortunately, it’s not hard to find out how much you will be able to borrow. To get this information, simply contact your title loan company and request a free loan estimate.
What Are the Benefits of Getting a Title Loan?
Some of the many benefits that title loans offer include:
- Fast cash. Title loans typically have faster processing times than traditional personal loans. This means you won’t need to wait weeks to find out if you are approved so you can get the cash you need.
- Easier to qualify for. If you’ve been turned away by other lenders, you may still qualify for a title loan. This is because title loans are easier to qualify for than other loans.
- Most credit types accepted. You don’t need perfect credit to qualify for a title loan. Title loan companies typically work with borrowers of all credit types.
- Spend your cash your way. If you are approved for a title loan, the lender won’t tell you what you can and can’t do with the money you borrow. It’s your money, so you can spend it your way.
- Keep your car. As long as you continue to make payments on your title loan, you won’t lose possession of your vehicle even though it’s used as collateral for your loan.
How Can You Apply for a Title Loan?
The last question on your mind may be “How can I apply for a title loan?” If you’re ready to get the fast cash you need, follow these steps to apply for a title loan from I Need Cash Now:
- Contact our loan specialists. There are two ways to get in touch with our team of loan specialists. You can either call 1-855-713-6522 to speak to a loan specialist directly or submit your information using the form on our website and wait for a loan specialist to reach out to you.
- Get a free loan estimate. It only takes a few minutes to get a free loan estimate, which will tell you if you are approved for a loan, how much you can borrow, and at what interest rate. To get this estimate, you must provide your loan specialist with some information about your vehicle, including its make, model, year, and mileage.
- Complete your application. Review the terms of your loan estimate. If you would like to move forward with taking out a title loan, complete your application by signing and submitting the required documentation.
- Get your cash. You can collect your cash shortly after your application is approved. Pick up your cash in person or have it sent to you via check or wire transfer–it’s your choice.
Don’t hesitate to contact our loan specialists to start the process of borrowing money with a title loan.