If you need fast cash, taking out a title loan might be the solution. Title loans are loans that are typically processed quickly, which means you can get your hands on the cash you need to make ends meet right away.
To obtain a title loan, you must use the title to your vehicle as collateral. You won’t lose access to your car if you are approved, though. You can continue to drive your vehicle while you repay your loan. Your lender will either hold onto your title or put a lien on your title until your loan has been completely repaid.
Taking out a title loan might be the best way to secure cash as quickly as possible. But if you’ve never applied for a title loan, you might not know what to expect during the application process. What are the eligibility requirements? What do you need for a title loan? Here’s what you need to know:
Who is Eligible for a Title Loan?
Title loan eligibility requirements can vary depending on the lender. But in general, you may be eligible for a title loan if you meet the following conditions:
- You are at least 18 years old.
- You own or partially own a vehicle.
- Your vehicle meets your lender’s minimum value requirement.
- You are willing to consent to a credit check.
- You have a reliable source of income.
As you can see, the eligibility requirements for a title loan are not the same as the eligibility requirements for a traditional personal loan. In other words, you may qualify for a title loan even if you don’t qualify for a traditional personal loan. If you aren’t sure whether you qualify, contact your title loan company to determine your eligibility.
What Do I Need for a Title Loan Application?
During the application process, the title loan company will ask you to submit certain documentation. The documentation you are required to submit could vary slightly from lender-to-lender, but if you want to apply for a title loan, you should be prepared to provide:
- The title to your vehicle
- Your driver’s license or another form of government-issued ID
- Proof of residence (driver’s license, mortgage, lease, utility bills, etc.)
- Proof of income (recent pay stubs, tax returns, bank statements, etc.)
- Proof of auto insurance
Start gathering these documents right away to make the application process as easy as possible. If you can’t find the title to your vehicle, let the title loan company know right away. They can help you obtain another copy of your title so you can complete your title loan application.
Can I Get a Title Loan With Less than Perfect Credit?
You typically need to meet a minimum credit score requirement to qualify for a traditional personal loan. However, title loans are not traditional personal loans, so the same rules don’t apply.
The title loan company will perform a credit check as part of the application process. This means your lender will consider your credit when determining your eligibility. But your lender will also consider other factors such as the value of your vehicle and your ability to repay the loan.
Because it is not the only factor that impacts your eligibility, your credit does not need to be perfect to qualify for a title loan. In fact, most credit types can be approved for title loans, so don’t let a less-than-perfect credit score stop you from getting the cash you need.
Can I Get a Title Loan If I’m Unemployed?
You must have a reliable source of income to qualify for a title loan, which is why you will need to show the title loan company proof of income during the application process. For many borrowers, this means providing pay stubs from their employer. However, pay stubs are not the only acceptable form of proof of income, which means you don’t need to be employed to qualify for a title loan.
Unemployed applicants may still qualify for a title loan as long as they can provide another form of proof of income. For example, if you are unemployed but receiving disability or retirement benefits, you may qualify for a title loan by showing proof of these benefits.
The bottom line? You need a reliable source of income, which may or may not come from a job, in order to qualify for a title loan.
Can I Get a Title Loan If My Car Isn’t Paid Off?
If you are still making payments on your vehicle, you may wonder whether you will still be able to use it as collateral for a title loan. Fortunately, you can still qualify for a title loan even if your vehicle is not completely paid off. However, your eligibility will depend on how many payments you have left and your equity in your vehicle.
Everyone’s situation is unique, so it’s best to discuss the remaining balance on your loan with your title loan company to find out if you qualify.
How Much Does My Car Need to be Worth to Qualify for a Title Loan?
Your car must meet the title loan company’s minimum value requirement to qualify for a title loan. This minimum value requirement can vary depending on the lender, but in general, the vehicle you are using as collateral must be worth more than the amount you want to borrow.
Your lender will need to calculate your car’s resale value during the application process. Some lenders may ask you to bring your car in for an inspection, whereas others may ask you to submit photographs of your car instead. Either way, the lender will consider a number of factors when calculating your vehicle’s resale value, including:
- Trim level
If you aren’t sure how much your vehicle is worth, contact your lender. Provide them with some basic information about your vehicle to find out if it meets their minimum value requirement and if so, how much you may be able to borrow by using it as collateral.
How to Apply for a Title Loan
- Contact our loan officers. You can either call us at 855-713-6522 or submit your information using the online form on our website. If you choose the latter option, a loan officer will reach out to you to discuss the next steps in the process.
- Get a free quote. Your loan officer will ask for some basic information, including your vehicle’s make, model, year, and mileage. Your loan officer will use this information to prepare a free title loan quote. This will tell you if you are approved, how much you can borrow, and at what interest rate.
- Finalize your loan. If you’re happy with your quote, you can work with your loan officer to finalize the terms of your loan. You will need to sign and submit documentation during this step of the process. Your loan officer will guide you through this step to ensure everything is completed in a timely manner.
- Collect your cash. You can get your cash shortly after your application is approved. You can choose to pick up your cash in person or have it sent to you via check or wire transfer.
Follow these four steps to submit a title loan application and secure the cash you need to make ends meet.