How Do Vehicle Title Loans Work?
Title loans sound pretty great, right? So great that you may be concerned you won’t get approved or that you aren’t eligible for a title loan. Luckily, the eligibility restrictions for title loans are not very strict, but there are a few requirements you’ll have to meet.
For starters, you have to be eighteen or more in order to qualify for a title loan. Underage people who own vehicles would have to hand over their title to another individual and have that person the title loan in their name.
If you are old enough for a title loan, your title cannot have any liens on it. And, if there ever has been a lien on your car, you will generally be required to show verification that it has been removed before you can secure a title loan.
There also must be some equity to your vehicle. For this reason, newer vehicles or vehicles that are less than ten years old typically are the greatest candidates for title loan funding. While just about any car can get you some funds if your loan application is approved, the more your automobile is worth, the larger the title loan amount you’re likely to be approved for.
Finally, bear in mind that you will need a proven way to satisfy your title loan. For most people, that’s a job. However, disability payments, unemployment benefits, and other regular payments you receive can often count as your income.
If you can meet these basic requirements, then it is possible you may get approval for a title loan.
Superior Speed
If you’re like most title loan borrowers, then you need your money as quickly as possible. Don’t worry. We definitely understand that time is of the essence, which is why we try to process loan applications very quickly. And, even better yet, if you are approved, we’ll get you your money as quickly as possible.
This is typically not the case with more common lending options. With those routes, the application process is very long and in-depth. It could take you a while just to gather all the necessary documentation and fill out the application. Then, you can expect to wait several days or even more, especially during peak times, for your loan application to be processed. Since approval rates are low, you could wait all that time just to find out you’re not approved for the loan. And, even if you do get approved, it’s possible that you could wait longer for your funds to be distributed to you, and then even more time for them to clear and be available for use.
As you can see, other types of loans aren’t always a good choice for the borrower in a time crunch.
A Few Other Things to Note
One common option people turn to when they are in need of financing and don’t have great credit is a payday loan or a cash advance. This is a sort of loan where money is given to the borrower and then repaid on their next payday, often all at once and often via direct withdrawal from the person’s checking account.
But, before you turn to this option, be aware that payday advances often have extremely high interest rates. There is no real collateral involved, the way there is with a title loan, which is why you end up paying so much. Furthermore, if you don’t have a bank account, you might not be eligible for a loan at all. You may also find it impossible to pay back the loan in one lump sum.
Car title loans are much better options that will typically cost you a lot less in the long run and that give you the option of making regular payments to pay off the loan. So, before you look into cash advances, consider a title loan.
How much can I get with an auto title loan?
Usually, you can borrow up to the full amount of your car’s worth.
What’s the first step in obtaining a vehicle title loan?
You may complete your application completely online or on the phone. As you can see, we offer a lot of great benefits for today’s borrowers. To learn more about how we can help you, fill out our simple online form or give us a call. In just a few moments of your time, you could be well on your way to a much better financial situation.
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