There are many different reasons to take out a cash loan. Some people need cash to make urgent home or vehicle repairs, whereas others need it to pay for medical bills or other unexpected expenses. You may even consider a cash loan to cover the costs of a wedding or funeral.
A quick search of “cash loan places near me” may reveal that there are countless lenders located near you. But not all lenders are created equal. If you are in need of cash fast, it’s best to choose a lender that offers car title loans.
How Does A Car Title Loan Work?
A car title loan, also known as a vehicle title loan or simply a title loan, is one type of cash loan. Title loans are secured by collateral in the form of the title to your vehicle. This means if you are approved for a car title loan, the lender will put a lien on the title to your vehicle. The lien will be removed once you finish paying off the loan.
This does not mean that you will need to sacrifice your vehicle in order to get a title loan. You can continue to use your vehicle while you make payments on the loan. The lender will not take possession of your vehicle unless you stop making payments.
Who is Eligible For A Car Title Loan?
There are certain requirements that you must meet in order to qualify for a car title loan, including:
- Proof of ownership: You must be able to provide the title and registration to prove that you are the owner of the vehicle.
- Identity verification: You must be able to verify your identity by providing a government-issued ID such as a driver’s license or passport.
- Proof of income: You must prove that you are able to repay the loan by showing proof of income in the form of pay stubs, bank statements, or other financial documents.
These are general eligibility requirements, but the exact requirements may vary slightly from lender-to-lender.
How Much Will You Be Able to Borrow Through A Car Title Loan?
The amount you are approved to borrow will depend on several factors, including your income, state laws, and the lender. Another factor that will play a significant role in determining the amount of your loan is the value of your vehicle.
Your lender will calculate the value of your vehicle by assessing its make, model, year, mileage, condition, and age.
Lenders will not allow you to borrow more than the resale value of your vehicle. In fact, lenders typically only allow you to borrow between 25-50% of your vehicle’s resale value.
What Are the Benefits of Car Title Loans?
Title loans offer a number of benefits compared to other types of cash loans. Some of these benefits include:
- Fast processing time: You can get approved for a car title loan quickly, so you won’t need to wait weeks to get the cash you need.
- No prepayment penalty: You won’t incur additional charges if you choose to pay your loan off early.
- No spending restrictions: There are no rules or restrictions regarding how you spend the money you obtain through a car title loan.
- All credit types welcome: Because this is a secured loan, your credit will not play a major role in determining your eligibility for a car title loan.
What to Expect During the Car Title Application Process
It doesn’t take long to apply for a car title loan. Here are the steps you will need to follow:
- Initiate the application process by either calling us or filling out the form located at the top of our website. If you choose to submit your information using the online form, a loan specialist will contact you shortly to discuss the next steps.
- Review the details of your loan with your loan specialist. Your loan specialist will provide you with a quote and explain the terms of the loan you have been approved for. Make sure you are comfortable with these terms before moving forward in the application process.
- The next step is submitting the required documents to your lender. Ask your loan specialist for more information if you aren’t sure what you need to submit to finalize your loan.
- The final step is collecting your cash. You can receive your cash via check or wire transfer. You also have the option of picking up the cash in person if that’s what you prefer.
That’s all it takes to take out a car title loan. You won’t have to deal with a lengthy application or extended waiting period to get the cash you need.