People often apply for traditional personal loans when they need to borrow cash to make ends meet. However, applicants must meet strict eligibility requirements to qualify for traditional personal loans, so many people may not get approved. If you’re in this situation, you may think that you’re out of options, but that’s not the case. There are better ways to get fast cash, including applying for a title loan.
A title loan is secured by the title to your vehicle. In other words, you must use the title to your vehicle as collateral to borrow money through a title loan. You won’t lose access to your car, though. You can keep driving it as you normally would while you repay the money you borrow.
Because title loans are secured by collateral, the eligibility requirements are different from the eligibility requirements for traditional personal loans. Here’s what you need to know about qualifying for the best online title loans:
What Do You Need to Qualify for Online Title Loans?
Every title loan company is different, so eligibility and documentation requirements can vary. But in general, this is what you will need to qualify for the best online title loans:
- The Title to Your Vehicle
- Qualifying Vehicle
- Equity in Your Vehicle
- Credit Check
- Reliable Source of Income
The Title to Your Vehicle
The title to your vehicle is used as collateral, so it’s one of the most important documents you will need to submit when applying for a title loan. If you can’t find the title to your vehicle, it’s important to let your lender know. Your lender can guide you through the process of requesting a new title from the Department of Motor Vehicles (DMV) so you can complete your application as soon as possible.
The title you submit to your lender must have your name on it, which indicates that you are the legal owner of the vehicle. Your name does not need to be the only name on the title, though. If you share ownership with someone else, you can still use the title as collateral for your loan.
You cannot use a salvage title as collateral for a title loan. Salvage titles are given to vehicles that have suffered extensive damage and been declared a “total loss” by an insurance company. It’s very difficult to estimate the value of these vehicles, which is why title loan companies typically will not accept these titles as collateral.
You can use a wide range of vehicles as collateral, including a sedan, coupe, convertible, SUV, minivan, pickup truck, motorcycle, or RV. However, the vehicle you use must meet your title loan company’s minimum value requirement. This requirement can vary from lender-to-lender, so it’s best to contact your title loan company to find out if your vehicle qualifies.
To calculate your vehicle’s value, the title loan company will assess its make, model, year, mileage, condition, and trim level. You may need to bring your vehicle in for an inspection to allow the title loan company to calculate its value. However, some title loan companies will allow you to submit photos of your vehicle instead of bringing it in for an inspection.
Equity in Your Vehicle
If you are still making payments on your vehicle, it’s important to know how much equity you have. You must have equity in your vehicle to qualify for a title loan. To calculate your equity, subtract the outstanding balance on your auto loan from your car’s resale value.
For example, if your car’s resale value is $15,000 and you still owe $5,000, you have $10,000 in equity ($15,000-$5,000=$10,000).
Calculating your equity can help you estimate how much you will be approved to borrow. You cannot borrow more than the value of your equity. In fact, most title loan companies will only allow you to borrow up to a certain percentage of your equity.
You must be willing to consent to a credit check if you want to borrow money through a title loan. If your credit isn’t perfect, the thought of a lender performing a credit check might make you nervous. You may assume that you won’t get approved if you don’t have the best credit score possible, but that’s not the case.
Your lender will consider your credit when determining your eligibility for a title loan, but it’s not the only factor that they will consider. Other factors such as your car’s resale value and your ability to repay the loan will also impact your eligibility. For this reason, you don’t need a perfect credit score to qualify for a title loan. Most credit types are accepted by title loan companies.
Reliable Source of Income
You must have a reliable source of income to qualify for a title loan. During the application process, the title loan company will ask you to provide proof of your reliable source of income. For example, you may be asked to submit recent pay stubs from your employer, tax returns, or bank statements showing regular deposits.
You do not need to be employed to qualify for a title loan. If you are unemployed, you can still qualify as long as you can show proof that you have another source of reliable income. If you receive government benefits, for example, this may help you qualify for a title loan.
If you don’t qualify for a title loan on your own, consider adding a co-signer to your application. A co-signer is someone who agrees to take responsibility for your loan in the event you fail to repay it. The person who co-signs your application will not receive any of the money you borrow. By signing their name, they are simply agreeing to repay your loan if you cannot do so.
If your co-signer has good credit, this can improve your chances of getting approved for a title loan. It can also help you secure more favorable terms, such as a lower interest rate, which can save you a significant amount of money.
How to Apply for the Best Online Title Loans
Taking out a title loan is easy. If you’re ready to secure the fast cash you need, follow these steps to apply for the best online title loans from 1(800)CAR-TITLE®:
- Contact our team. Call 1-800-227-8485 to speak to a loan specialist directly. You also have the option of submitting your information using the form on our website. If you choose this option, a member of our team will get in touch with you shortly.
- Get a free quote. You can find out if you are approved for a title loan and how much you can borrow in just a few minutes. But first, the loan specialist will need some information about your vehicle. You should be prepared to tell your loan specialist your vehicle’s make, model, year, mileage, and condition.
- Complete your submission. If you’d like to move forward with taking out a title loan, you can complete your application by signing and submitting the required documentation.
- Get your cash. You can get your cash shortly after your loan application has been approved. Pick up the cash in person or have it sent to you via check or wire transfer. You can choose the option that is most convenient to you.
You’re just four steps away from taking out the best online title loans. Don’t wait any longer–contact us today to start your application.