Applying for a loan hasn’t always been easy. In the past, people who wanted to apply for a loan had to travel to the lender’s office, fill out stacks of paperwork, and wait days or even weeks to find out if they were approved. Fortunately, things are much different now.
If you need fast cash, you can apply for a car title loan from the comfort of your home. This is because the entire process of applying for car title loans is completely online, so you never have to step foot outside of your home to get the cash you need. But how much will you be able to borrow through a title loan? Here’s what you need to know before submitting your online application:
How Do Title Loans Work?
Before you find out how much you can borrow, it’s important to have a basic understanding of how title loans work. Title loans are not traditional personal loans. If you want to borrow money with a title loan, you must use the title to your vehicle as collateral.
You can keep driving your vehicle if you are approved for a title loan. The lender will either hold onto your title or put a lien on it while you repay your loan. Once your loan has been paid off, the lender will return the title to you or remove the lien from it.
If you comply with the terms of your loan agreement, your car will remain in your possession throughout the entire car title loan process. However, if you fail to repay your loan, the lender has the right to take possession of your vehicle.
Title loans are processed faster and easier to qualify for than traditional personal loans. For these reasons, title loans are ideal for people who need fast cash.
What Factors Impact How Much You Can Borrow With an Online Title Loan?
Title loans can range from $2,510 to $50,000. This doesn’t necessarily mean you will be approved to borrow the maximum amount, though.
- Your Income
- Your Vehicle’s Resale Value
- Type of Vehicle
- Your Equity
- Where You Live
No title loan company wants to lend you more than you can afford to repay. To avoid this problem, the title loan company will ask you to submit proof of your income during the application process. Proof of income can come in many forms, including pay stubs, tax returns, and bank statements.
Once you submit this paperwork, the title loan company will evaluate it to determine how much you can afford to repay based on your current income. The results of this evaluation will affect how much you are approved to borrow.
Your Vehicle’s Resale Value
Your vehicle’s resale value is one of the main factors that will impact how much you are approved to borrow with a title loan. This is because your vehicle is used as collateral, so the title loan company needs to know its resale value so they don’t allow you to borrow more than your car is worth.
You may be asked to bring your vehicle in for an inspection so the title loan company can calculate its value. However, some lenders allow borrowers to submit pictures of their vehicle instead of bringing it in for an inspection. Either way, the title loan company will calculate your car’s resale value based on its make, model, year, mileage, condition, and trim level.
Type of Vehicle
The type of vehicle you use as collateral could impact the amount of your title loan, too. For example, if you use a motorcycle as collateral, the maximum amount you can borrow is $4,000. However, if you use a car or RV as collateral, you may be able to borrow more since these vehicles are usually worth more than motorcycles.
If you own more than one vehicle, keep this in mind when deciding which one you should use as collateral to secure your title loan.
You may qualify for a title loan even if you are still making payments on your vehicle. However, you will not be able to borrow more than the value of your equity in your vehicle.
To calculate your equity, subtract the amount you owe on your vehicle from your vehicle’s resale value. For example, if your car is worth $18,000 and you still owe $3,000 on it, you have $15,000 of equity ($18,000-$3,000=$15,000).
Where You Live
The state you reside in may impact how much you can borrow as well. Some states, including New Hampshire, New Mexico, and Illinois, have laws that establish minimum and maximum amounts for title loans. Title loan companies must comply with these laws when doing business with residents of these states.
How to Find Out How Much You Can Borrow With Completely Online Title Loans
If you’re interested in applying for a title loan, you can find out how much you will be able to borrow in a matter of minutes. All you need to do is request a free loan estimate. Follow these steps to request your free title loan estimate from 1(800)CAR-TITLE®:
- Contact us. You can contact our loan specialists directly by calling 1-800-227-8485. You also have the option of submitting your information using the form on 1800cartitleloan.com. Then, a member of our team will get in touch with you as soon as possible.
- Answer questions about your vehicle. To prepare your loan estimate, your loan specialist will need to know more about your vehicle. Be prepared to tell your loan specialist your vehicle’s make, model, year, mileage, condition, and trim level.
- Review your loan estimate. Your loan specialist will prepare your free loan estimate based on the information you provide. Review the terms of your estimate to find out how much you can borrow and at what interest rate. Your loan specialist will be available to answer any questions or address any concerns you may have.
How to Get Car Title Loans Completely Online
Once you receive your title loan estimate, you can choose whether you would like to move forward with the process of applying for a title loan. If you are satisfied with the terms of your estimate, here’s what to do to finish your title loan application:
- Sign and submit documents. You will need to submit a number of documents to complete your application, including proof of income, proof of residence, the title to your vehicle, and your driver’s license. You will also need to sign several documents. The sooner you complete this step, the sooner you can get your cash.
- Collect your cash. There are several ways to get your cash. If you need it right away, you can choose to pick it up in person at one of our convenient locations. Otherwise, you can ask to have it sent to you via check or wire transfer.
You’re just a few steps away from getting the cash you need to make ends meet. Start your application for completely online car title loans today.