Borrowing money isn’t always easy. This is especially true if you apply for a traditional personal loan. You must complete a lengthy application process if you want to borrow money through a traditional personal loan. After you submit the application, you may need to wait days or even weeks to find out if you are approved.
If you need fast cash, you shouldn’t have to jump through hoops to get it, which is why you should explore other options outside of traditional personal loans.
A title loan is a great alternative to a traditional personal loan. Unlike traditional personal loans, title loans are secured by collateral. To obtain a title loan, you must use the title to your vehicle as collateral. You can still drive your vehicle while you make payments, so taking out a title loan won’t affect your daily life.
If you’ve never taken out a title loan before, you may be wondering what to expect during the application process. Is it easy to get title loans? Here’s what you need to know:
Who Qualifies for a Title Loan?
You may qualify for a title loan even if you weren’t approved for a traditional personal loan. This is because the eligibility requirements for title loans are very different from the eligibility requirements for traditional personal loans.
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, which means your name is on the title.
- Your vehicle meets your lender’s minimum value requirement.
- You have equity in your vehicle.
- You have a reliable source of income.
- You will consent to a credit check.
Eligibility requirements can vary depending on the title loan company. For this reason, it’s best to contact your title loan company directly to learn more about their requirements.
Do You Need Good Credit to Get a Title Loan?
There are typically minimum credit score requirements that you must meet to qualify for traditional personal loans. However, title loans aren’t like traditional personal loans.
If you apply for a title loan, the lender will check your credit as part of the process of determining your eligibility. In other words, your credit could impact your eligibility. However, your credit isn’t the only factor that will affect the lender’s decision. When determining your eligibility, title loan companies also consider the resale value of your vehicle and your ability to repay the loan.
The bottom line is you shouldn’t let your less-than-perfect credit score stop you from applying for a title loan. Because your credit isn’t the only factor that is taken into consideration, you don’t need a perfect credit score to qualify for a title loan. In fact, title loan companies accept most credit types.
Can You Get a Title Loan If You’re Unemployed?
To qualify for a title loan, you must have a reliable source of income that you can use to repay the money you borrow. However, it’s important to note that having a reliable source of income is not necessarily the same as having a job. In other words, you can still qualify for a title loan if you are unemployed as long as you have another source of reliable income.
For instance, if you are unemployed, you can still qualify for a title loan if you receive government benefits, alimony, rental income, or another form of income on a regular basis. Even though you aren’t employed, you still have a reliable source of income you can use to repay your loan. All you need to do is show proof of this income to your lender.
Can You Get a Title Loan If You Still Owe Money On Your Vehicle?
You may qualify for a title loan even if you are still making payments on your vehicle. In fact, many people with only a few payments left on their auto loan are approved for title loans.
Eligibility in situations like these is determined on a case-by-case basis. To find out if you qualify, contact your lender to discuss your unique situation.
Can You Add a Co-Signer to Your Title Loan?
Don’t throw in the towel if you aren’t eligible for a title loan on your own. If you’re in this situation, you may want to consider adding a co-signer to your title loan application.
A co-signer is someone who agrees to repay your loan in the event you fail to do so. This person will not receive any of the money you borrow. By signing their name, they are simply agreeing to share the responsibility of repaying your loan.
If you can find a cosigner with good credit, this could improve your chances of getting approved for a title loan. Having a co-signer with good credit on your application could also help you secure a lower interest rate, which will save you money over the course of the loan.
How Much Can You Get for a Title Loan?
Title loans can range from $2,500 to $50,000. The title loan company will take a number of factors into consideration when determining how much you can borrow, including:
- Your income: Your lender will ask you to submit proof of income during the application process. This way, they can evaluate your income and determine how much you can afford to repay.
- Your car’s resale value: Your car is used as collateral, so its resale value will have a huge impact on how much you can borrow. Your lender will assess your vehicle’s make, model, year, condition, trim level, and mileage to calculate its value. You are typically allowed to borrow up to a certain percentage of your vehicle’s value.
- Your equity: Your equity is the difference between your car’s resale value and the outstanding balance on your loan. You must have equity in your vehicle to qualify for a title loan and you cannot borrow more than the value of your equity.
How to Apply for Title Loans
It doesn’t take long to apply for title loans. If you’re ready to get fast cash, follow these steps to apply for a title loan from 1(800)CAR-TITLE®:
- Contact our loan specialists. Dial 1-800-227-8485 to speak to a loan specialist directly. Or submit your information using the form on our website. Then, a loan specialist on our team will get in touch with you as soon as possible.
- Get a free loan estimate*. In a matter of minutes, you can find out if you are approved for a title loan, and if so, how much you can borrow. To prepare your loan estimate, your loan officer will need to collect some information from you about your vehicle. Be prepared to provide your vehicle’s make, model, year, mileage, and condition.
- Finalize your loan. Review the terms of your loan estimate carefully. If you’re satisfied with your loan estimate, finalize your loan by signing and submitting the required documentation. The sooner you complete this step, the sooner you can get your cash.
- Collect your cash. Pick up your cash or have it sent to you via check or wire transfer, whatever is most convenient for you.
Taking out title loans is easy. Get started by contacting our loan specialists today.
*Loan approval is subject to meeting the lender’s credit criteria, which includes the demonstration of the ability to repay the loan. Not all applications will be approved.