How to Get Approved for Vehicle Title Loans
If you’re short on cash, you may have considered applying for a traditional personal loan to get the money you need. However, the eligibility requirements for traditional personal loans are strict. You may not get approved for a traditional personal loan unless you meet a number of conditions, including a minimum credit score requirement.
There is another option available: title loans. A title loan is a secured loan that allows you to borrow money by using the title to your vehicle as collateral. The lender will either hold onto your title or put a lien on it while you make payments, which means you can continue to drive your vehicle until your loan has been repaid.
You may qualify for a title loan even if you do not qualify for a traditional personal loan due to your credit or various other reasons. Is getting approved for title loans really that easy? Here’s what you need to know:
What Are the Eligibility Requirements for Title Loans?
The eligibility requirements for a title loan are generally different from the eligibility requirements for a traditional personal loan. You may qualify for a title loan if you meet the following conditions:
● You are at least 18 years old.
● You own or partially own a vehicle, which means your name is on the title.
● You have equity in your vehicle.
● Your vehicle meets your title loan company’s minimum value requirement.
● You are willing to consent to a credit check.
● You have a reliable source of income.
Eligibility requirements can vary depending on the title loan company. Make sure you check with your lender to find out if you are eligible for a title loan.
What Will You Need to Submit to Apply for a Title Loan?
You may be required to submit a number of documents when applying for a title loan, including:
● Your driver’s license or another form of government-issued ID
● The title to your vehicle
● Proof of income (examples include recent bank statements, pay stubs, or tax returns)
● Proof of residence (examples include your driver’s license, utility bills, or lease agreement)
● Proof of auto insurance
The title loan company will also need to calculate the value of your vehicle during the application process. They may ask you to bring your vehicle in for an inspection or arrange to have someone come to you to inspect your vehicle. Some lenders may even give you the option of submitting photos of your vehicle instead of getting it inspected. Talk to your title loan company to learn more about the valuation process.
Can You Get Approved for Title Loans With Less than Perfect Credit?
Many people assume that they won’t qualify for a title loan because their credit isn’t perfect. However, you don’t need a perfect credit score to qualify for a title loan.
You will need to consent to a credit check as part of the title loan application process. This allows your lender to evaluate your creditworthiness and determine your eligibility. Your credit is not the only factor that is used to determine your eligibility, though. Title loan companies also consider other factors, including your car’s resale value and your ability to repay the loan.
Title loan companies typically accept most credit ranges, so you shouldn’t let a less-than-perfect credit score prevent you from getting the cash you need to make ends meet.
Do You Need to Be Employed to Get a Title Loan?
You must have a reliable source of income to qualify for a title loan. However, this does not mean that you need to be employed. Someone who is unemployed may still qualify for a title loan as long as they have another source of reliable income.
For example, if you are unemployed, you could qualify for a title loan if you receive disability benefits, retirement benefits, veterans’ benefits, or alimony. All of these are examples of reliable sources of income that may make you eligible for a title loan.
Can You Add a Co-Signer to Your Title Loan Application?
Don’t give up hope if you don’t qualify for a title loan on your own. If you’re in this situation, you may want to consider adding a co-signer to your title loan application.
A co-signer is someone like a family member, friend, or colleague who is willing to repay your debt in the event you fail to do so. If you add a co-signer to your title loan application, you may have a better chance of getting approved. You may also be able to secure a lower interest rate by adding a co-signer with good credit to your application.
Your co-signer will need to consent to a credit check and provide your lender with proof of residence and proof of income. This information is kept confidential, though. You will not be able to see the documents your co-signer submits and your co-signer will not be able to see the documents you submit.
How Much Will You Be Approved to Borrow With a Title Loan?
By now, you should understand that getting approved for a title loan can be easy. The next question on your mind might be, “How much will I be able to borrow?” The answer to this question will vary depending on several factors, including:
● Your income: Your lender will evaluate your income to determine how much you can afford to repay. The results of this evaluation will impact how much you are approved to borrow.
● Your car’s resale value: Because your car is used as collateral, the title loan company needs to know how much it is worth when determining how much you can borrow. Your lender will calculate your car’s resale value based on its make, model, year, condition, mileage, 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 still owe on it from your vehicle’s resale value.
In general, title loan amounts can range from $2,510 to $50,000.
How to Easily Apply for Title Loans
Now you should have a better understanding of how easy it is to apply for a title loan. If you need fast cash, follow these steps to apply for a title loan from LoanCenter:
- Contact us. Call 1-877-624-7594 or submit your information using the form on our website. If you submit an online form, a loan officer will contact you shortly to discuss the next steps.
- Get a free quote. You can get a free quote by providing your loan officer with some information about your vehicle, including its make, model, year, and mileage. The quote will tell you if you are approved for a title loan, and if so, how much you can borrow and at what APR.
- Sign and submit documentation. To finalize your loan, you will need to sign and submit the required documentation. Your loan officer will help you complete this step.
- Get your cash. Once your loan has been approved, you can collect your cash. You can choose to pick up your cash in person at one of our convenient locations or have it sent to you via check or wire transfer.
You’re just four steps away from getting the cash you need with easy title loans. Contact us today to start your application.
