Car accidents, unemployment, home repairs, medical emergencies, and other major life events can throw a wrench in your budget. If your bills are piling up, it’s important to know where to turn to get the fast cash you need to make ends meet.
Many people in this situation rely on title loans to secure fast cash. Title loans are not like traditional personal loans. A title loan is a secured loan that allows you to borrow money by using the title to your vehicle as collateral. Even though your vehicle is used as collateral, you can still drive it while you make payments, so a title loan won’t disrupt your daily life.
If you’ve never taken out a title loan before, you may not be sure where to begin. Are you eligible for a loan? What documents will you need to submit an application? Here’s everything you need to know about how to get a title loan:
What Are the Eligibility Requirements for Title Loans?
- You are at least 18 years old.
- You own or share ownership of a vehicle.
- You are willing to consent to a credit check.
- You have a reliable source of income.
- You have equity in your vehicle.
Eligibility requirements may vary slightly depending on the lender. Make sure you check with your title loan company to find out if you qualify based on their specific requirements.
What Will I Need to Apply for a Title Loan?
Every title loan company will ask you to submit certain documents during the title loan application process. You should be prepared to provide:
- Your driver’s license or another type of government-issued ID
- The title to your vehicle
- Recent bank statements, tax returns, pay stubs, or another form of proof of income
- Utility bills, a lease agreement, your driver’s license, or another form of proof of residence
- Proof of auto insurance
Let the title loan company know if you can’t find the title to your vehicle. Your loan officer can work with you to obtain another copy of your title so you can complete your title loan application as soon as possible.
Some lenders may require additional documentation. Your application cannot be processed until everything has been submitted, so the sooner you send everything to the title loan company, the sooner you can get the cash you need.
How Much Can I Get for a Title Loan?
Title loan amounts can vary depending on several different factors, including:
- Your income: Your lender will evaluate your income to determine how much you can afford to repay. This evaluation will impact how much you are approved to borrow.
- Your car’s resale value: Because your vehicle is used as collateral, its value impacts how much you can borrow. Your title loan company will calculate your car’s resale value based on its make, model, year, mileage, condition, and trim level.
- Your equity: You cannot 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. You cannot use a vehicle as collateral if you don’t have equity in it, or in other words, if you owe more than your vehicle is worth.
- Local laws: There are laws in some states that establish minimum and maximum title loan amounts. If you live in one of these states, these laws could impact how much you can borrow.
It only takes a few minutes to find out how much you can borrow. All you need to do is call your title loan company and ask for a free quote.
Will the Title Loan Company Check My Credit?
You must be willing to consent to a credit check to qualify for a title loan. Your lender will need to check your credit to evaluate your creditworthiness before determining whether you are eligible for a title loan.
However, it’s important to note that you don’t need perfect credit to qualify for a title loan. That’s because your credit is not the only factor that will impact your eligibility. Other factors such as your vehicle’s resale value and your ability to repay the loan will also determine whether you qualify.
Title loan companies typically accept most credit types, so don’t let the thought of a credit check stop you from getting the cash you need.
Can I Get a Title Loan If My Car Isn’t Paid Off?
If you’re still making payments on your car, you may wonder whether you will be able to use your vehicle as collateral for a title loan. Your car does not need to be completely paid off to qualify for a title loan.
Most people with a few payments left on their car loan still qualify for title loans. However, your eligibility will depend on how much you still owe and the value of your vehicle.
Everyone’s situation is unique, so it’s best to contact your title loan company to find out if you qualify even though your car isn’t paid off.
Can I Add a Co-Signer to My Title Loan?
If you aren’t eligible for a title loan on your own, you may want to consider adding a co-signer to your application.
A co-signer is a trusted friend, family member, colleague, or another individual who is willing to agree to pay back the title loan in the event you fail to do so. Adding a co-signer with good credit to your application could improve your chances of getting approved. It could also help you secure a lower interest rate, which will save you money over the course of the loan.
How Can I Get a Loan on a Title?
Now you know the ins and outs of getting a title loan. If you’re ready to get the cash you need, follow these steps to apply for a title loan from 1(800)CAR-TITLE®:
- Contact our loan officers. You can either call 1-800-227-8485 to speak to a loan officer directly or submit your information using the form on our website. If you submit the form, a loan officer will reach out to you as soon as possible.
- Review your loan estimate. To get a free loan estimate, simply provide some basic information about your vehicle, including its make, model, year, and mileage. Your loan officer will prepare a loan estimate based on this information. Review the terms of the loan estimate to find out if you are approved and if so, how much you can borrow and at what interest rate.
- Finalize your loan*. The final step in the application process is signing and submitting the required documentation. Work with your loan officer to ensure you sign and submit everything that is required to process your loan.
- Collect your cash. You can get your cash shortly after your application is approved. You can either pick it up in person or wait for it to be sent to you via check or wire transfer.
You’re just a few steps away from getting the cash you need. Contact us today to start 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.