Your car is one of the most valuable assets you own, so if you are strapped for cash, your car might be the solution to your financial troubles. How? You may be able to use the title to your vehicle as collateral to secure a title loan.
You don’t have to give up your car to get cash with a title loan. You keep your car, which means you can continue to drive it as you normally would while you repay your loan. If you need cash fast, you may be wondering how challenging it will be to take out a title loan. Is it hard to get a title loan? What are the eligibility requirements? Here’s what you need to know:
Do I Qualify for A Title Loan?
The title loan eligibility requirements may vary from lender to lender. In general, you must meet these conditions to be eligible for a title loan:
- You must be at least 18 years of age.
- You must own a vehicle that meets the minimum value requirements established by your lender.
- Your vehicle must have a clean title. You cannot use a salvage title as collateral for a title loan.
- You must have equity in your vehicle.
- You must consent to a credit check.
- You must have a reliable source of income.
If you aren’t sure whether you qualify for a title loan, feel free to reach out to a lender to discuss your eligibility.
How Much Does My Car Have to Be Worth to Qualify for A Title Loan?
Your vehicle must be worth more than the amount of money you borrow. Your vehicle must also meet a minimum value requirement established by the lender, otherwise you cannot use its title as collateral for a title loan. However, the specific minimum value requirement can vary from lender-to-lender.
Most vehicles will qualify, but newer cars or cars that are less than 10 years old are preferred by title lenders. Fortunately, it only takes a few minutes to contact your lender and find out if your vehicle qualifies.
How is the Value of My Vehicle Determined?
Your title lender will need to calculate the value of your vehicle during the application approval process. Title lenders consider many factors when calculating the value of a vehicle, including:
You can contact your title lender to find out the estimated value of your vehicle.
What Do I Need to Apply for A Title Loan?
You will need to submit certain documents during the title loan application process, including:
- The title to your vehicle.
- Your driver’s license or another form of government-issued ID.
- Proof of income such as tax returns or pay stubs.
- Proof of residence such as utility bills or a lease agreement.
- Proof of auto insurance that covers the vehicle you are using as collateral.
If you need cash fast, you may want to start gathering these documents now so you can complete your application quickly.
The most important document you will need to submit is the title to your vehicle. If you’re having trouble locating the title to your vehicle, contact your lender for assistance. A loan specialist can help you track down your missing title so you can complete your application.
The application process can vary, so your lender may ask you to submit additional documentation. Talk to your lender to find out exactly what needs to be submitted to avoid unnecessary delays in the processing of your application. The sooner you submit the required documentation, the sooner you can get approved and get the cash you need.
Can I Get A Title Loan If I’m Unemployed?
You must have a reliable source of income to get approved for a title loan. Why? If you don’t have a reliable source of income, you may not be able to repay the loan. To avoid this problem, the lender will ask you to submit proof of income during the application process.
Some borrowers assume that this means they will not qualify for a title loan if they are unemployed, but that’s not necessarily true. Being unemployed will not automatically make you ineligible for a title loan. You can still qualify for a title loan as long as you have another source of income.
For example, if you receive Social Security benefits, you may still qualify for a loan even if you are unemployed. This is because your benefits could be considered a reliable source of income. You might also qualify if you are currently receiving other types of benefits, including veterans’ benefits, workers’ compensation, and disability benefits.
Can I Get A Title Loan With Bad Credit?
If your credit score isn’t perfect, you may get nervous when you see that you need to consent to a credit check when applying for a title loan. A less-than-perfect credit score may prevent you from getting approved for a traditional loan, but will it impact your eligibility for a title loan?
Your lender will take your credit into consideration when determining your eligibility for a title loan. But your credit is only one factor that could affect your eligibility. Title loan approval is based primarily on two other factors: the value of your vehicle and your ability to repay. Because of this, most credit types are accepted by title lenders.
It’s important to note that your credit can also impact other terms of your loan, including your annual percentage rate (APR) and interest rate.
Can I Get A Title Loan If I’m Still Making Payments on My Car?
Most people don’t have enough cash to cover the purchase of a new or used vehicle, so they finance it by taking out an auto loan instead. If you financed your vehicle, you may wonder whether this makes you ineligible for a title loan. The short answer? You may qualify for a title loan even if you are still making payments on your auto loan, but your eligibility could depend on how much you still owe.
Your lender will consider many factors when determining whether you are eligible for a title loan, including your equity in your vehicle.
Your equity is the difference between the value of your vehicle and the amount you still owe on it. So if you owe $1,000 on a car valued at $5,000, you have $4,000 in equity.
You must have equity in your vehicle to qualify for a title loan. If you owe more than the vehicle is worth, this means you do not have equity, so you cannot use the title to this vehicle as collateral.
Many people who still have a few payments left on their vehicle are approved for title loans. It’s best to talk to your lender if you aren’t sure whether you will qualify due to your auto loan.
Can I Get A Title Loan If Someone Else’s Name Is on My Title?
Your name must be on the title that you plan on using as collateral to secure a title loan. If it’s not, you cannot use this title as collateral. But this does not mean that your name has to be the only name on the title to your vehicle. If someone else’s name is on the title with yours, you can still use the title as collateral for a title loan. As long as your name is included on the title, it can be used as collateral.
Is the Title Loan Application Process Difficult?
One of the best parts about title loans is the simple and straightforward application process. You won’t need to fill out stacks of paperwork or spend weeks talking to your lender in order to apply for a title loan.
Start the Application Process Today
If you’re ready to apply for a title loan with 1(800)Car-Title®, follow these simple steps:
- Call 1-800-227-8485 or fill out the form on our website. If you submit your information using the online form, a loan officer will contact you right away to discuss the next steps.
- See if you are approved for a title loan. The loan officer will review your information and tell you if you are approved and if so, how much you can borrow. The loan officer can also explain other details about your loan, including your monthly payment, interest rate, and term.
- Finalize your loan. You will need to sign the loan agreement and submit certain documentation during this step of the process. Your loan officer can explain what documents you will need to submit and how you can submit them to the lender.
- Get your cash. You can choose to pick your cash up in person or arrange to have it sent to you via check or wire transfer. Your cash will be available shortly after your application is approved.
The entire title loan application process can be completed quickly so you can get the cash you need right away.