More than one in five adults in the U.S. don’t save any of their annual income. This means more than 20% of adults don’t have any savings to tap into when unexpected expenses such as medical bills, home repairs, or last-minute travel plans arise.
If you’re struggling to make ends meet due to unexpected expenses or a sudden change in your financial situation, you may be thinking about taking out a loan to get the cash you need. There are many different types of loans available, though, so you need to explore all of your options, including cash title loans.
How will you know if a cash title loan is right for you? Get the answer you’re looking for by asking yourself these important questions:
Do You Know How Cash Loans On Car Titles Work?
The first thing you need to ask yourself is whether you know how cash title loans work. Cash title loans are not like traditional personal loans. A cash title loan, also known as a title loan, is a secured loan, which means it is supported by collateral. To obtain a cash title loan, you must use the title to your vehicle as collateral.
This doesn’t mean you will need to give up your car in order to borrow money, though. You will remain in possession of your vehicle if you are approved for a title loan. The title loan company will keep your title or put a lien on it until your loan has been repaid. In the meantime, you can continue to use it as you normally would while you make payments on your loan.
The lien will be removed–or your title will be returned–once your loan has been completely paid off. If you stop making payments, the title loan company has the right to take possession of your vehicle. This is the only circumstance in which you will lose possession of your vehicle.
How Quickly Do You Need the Cash?
The next thing you need to consider is how quickly you need the cash. It can take more time to get approved for a traditional personal loan. But if you need cash in a hurry, you may not be able to afford to wait days or even weeks to get approved.
Fortunately, cash title loans are typically processed much faster than traditional personal loans. This is one of the reasons why so many people rely on cash title loans when they need fast cash.
If you apply for a title loan, your cash will be available shortly after you are approved. One thing you can do to avoid unnecessary delays is submit all of your required documentation as soon as possible. This way, your application can be processed quickly.
Do You Own A Vehicle?
The title to your vehicle is used as collateral for a title loan, so you must own a vehicle in order to qualify for a title loan.
You don’t need to be the sole owner of the car, though. Your name must be on the title to the vehicle, but it doesn’t need to be the only name. If you share ownership of the vehicle with someone else, you may still be able to use the title as collateral for a title loan.
It’s important to note that title loan companies will not accept all vehicles as collateral for title loans. Your vehicle must meet the minimum value requirement established by the title loan company.
Do You Have Equity in Your Vehicle?
Another important question to ask yourself is whether you have equity in your vehicle. Equity is the difference between your vehicle’s resale value and the amount you still owe on it.
For example, if your vehicle has an estimated resale value of $15,000 and you owe $5,000, you have $10,000 in equity. But if your vehicle’s resale value is $10,000 and you owe $12,000 on it, you don’t have equity in the vehicle.
You must have equity in your vehicle to qualify for a title loan. If you are still making payments on your vehicle, do the math to determine whether you have equity.
How Much Money Do You Want to Borrow?
The amount you are able to borrow from a title loan will vary depending on several factors, including the resale value of your vehicle, your equity in the vehicle, and your ability to repay. But in general, you cannot borrow more than the value of your equity in the vehicle. If you have $10,000 in equity, but need to borrow $30,000, a title loan is not right for you.
Your title loan company should be able to tell you how much you will be able to borrow without impacting your credit. If you are considering applying for a title loan, don’t hesitate to contact your lender to get a free quote.
Do You Have A Reliable Source of Income?
Your ability to repay the loan is one of the factors the title loan company will consider when determining your eligibility. This is why you will be asked to submit proof of income during the application process.
You don’t need to be employed to qualify, but you must have a reliable source of income. Examples of a reliable source of income may include a part- or full-time job, disability benefits, retirement benefits, veterans’ benefits, spousal support, or rental income.
Are You Unable to Get A Traditional Personal Loan?
Borrowers usually need near-perfect credit scores to get approved for traditional personal loans. If you are unable to get a traditional personal loan as a result of your credit, a title loan might be right for you.
Your eligibility for a title loan is not based solely on your credit. Why? Unlike traditional personal loans, title loans are secured by collateral. Because of this, title loan companies consider many factors when determining your eligibility, including the value of your car and your ability to repay the loan.
Most credit types are accepted by title loan companies. This means you may qualify for a title loan even if you were not approved for a traditional personal loan due to your credit.
Are You Ready to Apply for Cash Title Loans?
Now you should have a better idea of whether cash loans on car titles are right for you. If you’re ready to secure the cash you need, follow these steps to apply for cash title loans from 1(800)Car-Title®:
- Start the application process. Submit your information using the form on our website or call 1-800-227-8485 to speak to a loan officer directly.
- Get approved. Your loan officer will ask you some basic questions about your vehicle and income. Then, your loan officer will use this information to prepare your free quote. Review your quote to learn more about how much you can borrow, the interest rate, payment frequency, and payment amount.
- Finalize your loan. If you are happy with the quote, finalize your loan by signing and submitting the required documentation. Your loan officer will guide you through this step in the process.
- Get your cash. Pick up your cash in person or have it sent to you via check or wire transfer–it’s your choice.
It only takes a few minutes to find out if you’re approved and if so, how much you can borrow. Contact us today to get started.