If you’re short on cash, it’s important to know where to turn to get the money you need to make ends meet. Many people in this situation rely on title loans to get fast cash.
A title loan is not like a traditional personal loan. To obtain a title loan, you must be willing to use the title to your vehicle as collateral. Your lender will put a lien on your title or hold onto it until your loan has been repaid. In the meantime, you can continue to drive your vehicle as you normally would. This means you won’t lose your vehicle just because you are using it as collateral to secure your title loan.
If you’re considering this option, you might be wondering whether a title loan will provide you with enough cash to make ends meet. Title loan companies can typically issue between $2,150 and $50,000 per loan, but how much can you get for a title loan? Here’s what you need to know:
What Factors Will Determine How Much You Can Borrow With a Title Loan?
Title loan companies take a number of factors into consideration when determining how much you can borrow, including:
- Your Income
- Type of Vehicle
- Your Vehicle’s Resale Value
- Your Equity
- Your Location
During the application process, the title loan company will ask you to submit proof of your income. Some examples of proof of income include recent pay stubs, bank statements, or tax returns.
The title loan company will review these documents to confirm that you have a reliable source of income that you can use to repay the money you borrow.
Your lender will also evaluate your income to determine how much you can afford to repay. The results of this analysis may impact how much you are approved to borrow with a title loan.
Type of Vehicle
Title loan companies accept a wide range of vehicles as collateral, including:
- Pickup trucks
If you own more than one vehicle, choose which one you want to use as collateral wisely. Some title loan companies limit how much you can borrow when using a motorcycle as collateral, for example. On the other hand, RVs are usually worth more than standard passenger vehicles, so you may be approved to borrow more money by using this type of vehicle as collateral.
Your Vehicle’s Resale Value
Your vehicle is used as collateral, which is why the title loan company needs to know how much it is worth before determining how much you can borrow.
The valuation process can vary depending on the lender. Some lenders will ask you to bring your vehicle in for an inspection after you submit an application, whereas others may send someone to you to inspect your vehicle. There are also title loan companies that allow applicants to submit photos of their vehicle instead of getting it inspected.
Regardless of whether the lender inspects your vehicle or photos of your vehicle, they will consider a number of factors when determining its value, including:
- Trim level
You cannot borrow more than your vehicle is worth, which is why calculating your car’s resale value is such an important part of the title loan application process.
Your equity in your vehicle can also impact how much you are able to borrow with a title loan. To calculate your equity, subtract the outstanding balance on your auto loan from your vehicle’s resale value.
For example, if your vehicle is worth $20,000 but you still owe $6,000 on it, this means you have $14,000 of equity ($20,000-$6,000=$14,000).
You must have equity in your vehicle to qualify for a title loan. Furthermore, you cannot borrow more than the value of your equity in your vehicle. Most title loan companies will allow you to borrow up to a certain percentage of your equity.
Where you live can also affect how much you are approved to borrow. This is because a number of states have passed laws that establish minimum and maximum amounts for title loans.
For instance, the state of Illinois has a law that limits each title loan to $4,000 or up to 50% of the borrower’s monthly income. In Mississippi, the maximum title loan amount is $2,500, but it’s much higher in New Hampshire, where each title loan can be up to $10,000.
Title loan companies must comply with these state laws. If your state has these restrictions in place, they may impact how much you can borrow.
How to Find Out How Much You Can Get for a Title Loan
You don’t need to try to do the calculations on your own. You can find out how much you will be able to borrow with a title loan in a matter of minutes. All you need to do is contact your title loan company and request a free loan estimate.
A loan estimate* will tell you important information about the title loan you qualify for, including the amount you will be able to borrow and the interest rate. If you want to find out how much you can borrow with a title loan, follow these steps to request a free loan estimate from 1(800)CAR-TITLE®:
- Contact our loan specialists. There are two ways to get in touch with our team. You can call us directly at 1-800-227-8485 or submit your information using the form on our website. If you choose to submit an online form, someone on our team will reach out to you as soon as possible.
- Answer a few questions about your vehicle. To create your loan estimate*, your loan specialist will need to learn more about your vehicle. Be prepared to provide basic information, including your vehicle’s make, model, year, mileage, and condition.
That’s all you need to do to get a free loan estimate. Once you receive your estimate, carefully review the terms. Your loan specialist will be available to answer any questions or address any concerns that you may have.
How to Apply for a Title Loan
You are not obligated to apply for a title loan simply because you requested a free loan estimate from a title loan company. However, if you are satisfied with the terms and conditions of your free loan estimate from 1(800)CAR-TITLE®, you can complete your application by following these steps:
- Sign and submit the required documentation. You will be asked to submit a number of documents, including your driver’s license, the title to your vehicle, proof of income, proof of residence, and proof of auto insurance. You may also need to sign several documents. The sooner you complete this step, the sooner your application can be processed and approved.
- Collect your cash. Your money should be available shortly after your application has been approved. You can either pick up your cash in person at one of our convenient locations or have it sent to you via check or wire transfer. Choose whichever option is the most convenient for you.
That’s all it takes to apply for a title loan from 1(800)CAR-TITLE® after requesting a free loan estimate. Don’t wait any longer to get the cash you need–contact us today to submit your application.
*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.