If you incur an unexpected expense, you may need more cash to make ends meet for the month. But sometimes, picking up an extra shift, working a side gig, or tapping into your rainy day fund isn’t enough. If you need cash in a hurry, one option is applying for a title loan.
A title loan is a secured loan that allows you to use the title to your vehicle as collateral. You won’t have to give up your car in order to borrow money, though. You can continue to drive your car while you make payments on your title loan. This is one of the many benefits of taking out a title loan.
Because title loans are processed quickly, many people rely on them to get fast cash. But what do you need to get a title loan? Are you eligible? Here’s what you need to know:
Who is Eligible for a Title Loan?
If you are interested in taking out a title loan, the first thing you should do is figure out if you are eligible. The eligibility requirements may vary slightly depending on the lender. But in general, you may be eligible for a title loan if you meet the following conditions:
- You are at least 18 years old.
- You have a reliable source of income.
- You own or partially own a vehicle, which means your name is on the title.
- You will consent to a credit check.
- You have equity in your vehicle, which means your vehicle is worth more than the amount you still owe on it.
The vehicle you plan on using as collateral must also meet certain minimum value requirements established by the lender. These requirements can vary widely, so it’s best to contact the lender to find out if your vehicle qualifies.
What Documents Will You Need to Apply for a Title Loan?
Part of the title loan application process involves submitting documentation to your lender. Just like the eligibility requirements, the documentation requirements can vary from lender-to-lender. However, if you are thinking about applying for a title loan, you may want to start gathering these documents:
- The title to your vehicle
- Your driver’s license or another type of government-issued ID
- Proof of income (recent tax returns, bank statements, pay stubs, etc.)
- Proof of residence (driver’s license, utility bills, mortgage, lease agreement, etc.)
Because your car is used as collateral, your lender will also need to inspect your vehicle during the application process. This gives the lender the opportunity to examine your car and calculate its value. The inspection process varies. Some lenders ask you to bring your vehicle in for an inspection, but others may accept photographs of your car instead. If your lender requires photographs, you will need to submit them along with your other documentation.
How Can You Get a Title Loan Without the Title?
All lenders require title loan applicants to submit the title to their vehicle as part of the application process. This allows the lender to confirm that your name is on the title, which means you are the owner of the vehicle. If you are approved for a title loan, your lender will either hold onto your title or put a lien on it until your loan has been repaid.
There’s no doubt that this document plays an important role in the process, but what should you do if you can’t find the title to your vehicle? You can still apply for a title loan even if you’ve misplaced or damaged your title. Just let the lender know about your situation as soon as possible. Your lender can help you secure another title so you can complete your application.
Can You Get a Title Loan With Bad Credit?
You may not qualify for certain types of personal loans unless your credit is perfect. However, that’s not the case with title loans. You may still qualify for a title loan even if you were not approved for a traditional personal loan due to your credit.
This is because title loans are secured by collateral, whereas traditional personal loans are not. It’s true that your lender will consider your credit when determining whether you qualify for a title loan, but this isn’t the only factor that will impact your eligibility. Title lenders also consider other factors such as the value of the vehicle you are using as collateral and your ability to repay the loan.
In other words, your eligibility for a title loan does not depend solely on your credit score. In fact, most credit types are accepted by title lenders.
Can You Get a Title Loan If You’re Unemployed?
Some people assume that they won’t qualify for a title loan simply because they are unemployed. However, unemployment does not automatically make you ineligible for a title loan.
You must have a reliable source of income to qualify for a title loan, but that source of income does not need to be a job. This means you may still qualify for a title loan if you are unemployed as long as you earn income from other sources.
Examples of other sources of income may include retirement benefits, disability benefits, veterans’ benefits, spousal support, or rental income. During the application process, all you need to do is submit proof of your reliable source of income to your lender.
How Long Does It Take to Get a Title Loan?
If you need fast cash, you might be wondering how long it will take to get the money you need from a title loan. Fortunately, title loans are processed quickly, which is why they are preferred by people who need cash right away.
If you want to get your cash quickly, submitting all required documentation as soon as possible is the best way to avoid unnecessary delays in the application process. Work with your lender to ensure you submit everything that is required. The sooner these documents are submitted, the sooner the lender can approve your application.
Can You Apply for a Title Loan Online?
You can apply for a title loan online or over the phone from 1(800)Car-Title®. Here’s how:
- Fill out the short form on our website or call 1-800-227-8485 to speak to a loan officer. Be prepared to answer a few questions about your vehicle, including its make, model, and mileage.
- Review your quote. Your loan officer will tell you if you are approved for a title loan and if so, how much you can borrow. You can also learn about other terms of your loan, including the interest rate, payment amount, and payment frequency.
- Sign and submit paperwork. You will need to sign several documents and submit the required documentation in order to finalize your loan. Your loan officer will explain what action you need to take to complete this step.
- Get your cash. Your loan will be processed shortly after you sign and submit the required documentation. Then, you can choose to pick up your cash in person or have it sent to you via check or wire transfer.
If you’re short on cash, the financial help you need is just a few clicks or one phone call away. Don’t wait any longer–apply for a title loan today.