How does a Title Loan work?
You will need to present your vehicle and a lien-free title to your lender.
The lender will appraises your vehicle to determine the value of your car.
Based on the appraisal, the lender will determines the amount of your loan.
The lender will place a lien on your vehicle title to secure the loan.
You will get the cash you need in most cases the same day, and you get to keep your vehicle.
What if I have bad credit?
Good news – your credit history is not considered in the title loan approval process. Also note that in most cases your credit status will not be affected by applying for a title loan or after receiving a cash advance loan. Great news – Even if you have filed for bankruptcy in the past, it is not an issue. Remember it is your title that secures your loan so no need to worry about bad credit since the lender does not check your credit or use your credit history in any way in the approval process.
What are the requirements to get a title loan?
- To be approved for a title loan you must be at least 18 years old
- You must present a Lien-free title – All persons named on the title must be present
- You must have a working phone so you can be reached
- You must have a Drivers License, State verified Photo ID or equivalent
- You must have proof of residency – A recent utility bills, copy of your rental agreement, or a cell phone bill can serve as proof as long as they are in your name.
If you are working with a local lender, it is best to call ahead to be certain you have all the necessary items.
Does the car title have to be in my name?
The title to the vehicle must have you listed as the legal owner of the car you intend to use as collateral for the transaction. If there is anyone else listed on the title, they must be present as well.
Will I be approved?
Most loans are approved but many times the Loan amount and Overall interest rate will be adjusted to protect the interest of the lender.
How much money can I borrow?
The average range is from $500 to $5000. The Loan amount is based on the vehicle appraisal, the customer’s ability to pay and any other terms and conditions observed by the lender.
How long does the Title Loan take?
For first time clients that provide all the required items, they can be in and out in less than 30 minutes. Existing clients can be in and out in 15 minutes or less.
How do I get my title back?
Make the payments as you have agreed and when you pay your last payment the lien is removed. Most lenders will allow you to keep your account open and you can use your title over and over again as the need arises for quick cash.
Why acquire cash from a title lender?
A Title Loan allows you to access quick cash based on the value of your car without losing the ability to use your car. Remember that a Title Loan is based on your car as collateral not your credit history.
Are Title Loan rates considered high?
Title Loan rates are higher than many other collateral based loans. The Title Loan lender will assess the additional costs to convert the collateral to cash in a default situation and in most cases will figure these costs into the loan interest rate.
What about late payments?
If you become late the lender will make attempts to contact you at the number and address you provided on your application. If you are non-responsive after these attempts to collect on your Title Loan, the Lender has the right to repossess and sell your vehicle. Most Title lenders consider repossession a last resort because repossessions are expensive and time-consuming. Be sure to keep your contact information up-to-date to ensure you are always contacted about your Title Loan. If your vehicle is repossess and sold, most Title lenders will returns excess proceeds from vehicle sales to the customer.