An auto title loan is a secured installment loan for which your car or truck is used as security for loan repayment. When the loan is made, the lender places a lien on your vehicle title. Once the loan is paid in full, the lien is removed.
What is an Auto Title Loan and How Does it Work?
A title loan, or auto title loan, is a secured loan type that allows you to borrow a specific percentage of your car’s value. The vehicle title is used as collateral for the money.
When you use your car or truck as collateral to obtain the funds, the loan then becomes secure. A few different things will happen to your vehicle title during that process. A title loan lender will place a lien on it for the entirety of the loan duration. Yet, the lender will remove the lien once you have paid the loan in full!
Typically, an auto title loan may allow you to obtain equity from your vehicle starting at 50%. The amount of the auto title loan received depends on a few requirements, your vehicle equity, income, and state you reside in. You may be eligible to receive anywhere from $1,000-$10,000!
The more positive equity your car has, the more you can potentially obtain through a car title loan if you have enough income to support it. Thankfully, there is an online calculator tool available for the auto title loan borrowers to find an estimate on their vehicle’s equity amount.
With an auto title loan serviced by LoanMart, you can apply from the comfort of your home. If you qualify for an car title loan, you may receive the money in as little as one business day!3
What Does Equity Mean for a Car Title Loan?
If you’re unfamiliar with what vehicle equity is, it is essentially the difference between the resale value of your car and the amount you owe on it. People can define equity as a dollar amount or percentage of the vehicle’s current resale value.
A vehicle’s equity is an important factor in acquiring funding from a title loan. It helps title loan lenders feel secure that you will meet your auto title loan payments one way or another. That is because you are using your car’s title as an asset to secure money.
It’s also essential to understand that vehicles have positive or negative equity.
- Positive Equity: If the car’s market value is more than what you owe on it, it has positive equity.
- Negative Equity: If you owe more than what the car is worth, it has negative equity.
To apply for an auto title loan serviced by LoanMart, you will need a certain amount of positive equity.
What is a Lien on a Vehicle Title?
A lien is a legal right or claim against assets, usually used as collateral for a loan to satisfy a debt. In the case of car title loans, a lender will place a title lien on your title to ensure you will pay off the loan in its entirety. Once you satisfy your monthly payments, a title loan lender will remove the lien. If you start missing payments and fail to pay off a title loan, the lender can repossess your vehicle and sell it to recoup their money. It’s important to note that when your car’s title has a lien, it automatically shows you do not own the vehicle “ free and clear.”
But a lien on the title doesn’t mean you’d lose access to your vehicle! When you inquire about an auto title loan serviced by LoanMart, you can keep your car while you pay off the loan! Yet, to maintain that privilege, you must be on time with your installments.
What are the Requirements for an Auto Title Loan?
You will need to meet a few initial requirements to find out if you may qualify for the funds you need through a car title loan serviced by LoanMart. Besides being at least 18 years of age or older, the first is that you need to demonstrate the ability to repay a title loan. Also, you will need to have a qualifying car with the title in your name. The car should be paid off, or close to paid off! You may still apply for a car title loan while you are still financing your car, you will need to meet a few additional requirements.
Do I Need Documents to Obtain a Car Title Loan?
In addition to using your car title as collateral, a title loan agent from LoanMart will ask you to submit a few documents. But don’t worry about this step in the approval process, as it could be simple to find your paperwork! You may only have to look around your house or car to acquire them all!1
Although some states may require additional information, you could expect to turn in the following documentation:
- The Title to Your Vehicle
- Proof of Reliable Income, Such as Retirement Income, Worker’s Compensation, Social Security/Supplemental Security Income, And More!
- Proof of Address
- A Valid, Government-Issued Photo Identification, Such as Your Driver’s License, Passport, or Other Certified State Identification Cards
- Some Professional or Personal References
Once you submit your required documents, you can move forward to the final step in the loan process: getting your cash!1
How Do I Pay Off an Auto Title Loan?
Some loan options tend to ask borrowers to repay their loans in person or by sending checks through the mail. While some people may be okay with that, others can find it inconvenient. Fortunately, a title loan serviced by LoanMart includes an online repayment method on top of those conventional ones! You could quickly meet your installments without going anywhere!3
What if online transactions aren’t your thing? No worries! You could select different ways to complete your payments:
- Set Up an Automatic Electronic Withdrawal
- Pay via Phone By Using Your Debit Card
- Pay via Mail By Sending Checks to a Payment Center
- Use Your Smartphone and Pay Through the App
- Visit a MoneyGram Location to Pay in Person
What are the Benefits of a Car Title Loan?
With an auto title loan with LoanMart, you can expect an expedited and streamlined process. With LoanMart, you could go from the application process to having your auto title loan money (which varies based on your location) in your hands within a day!3
While you may have been searching for an auto title loan to get cash, there are other benefits to consider! Take a look at some of the benefits you can take advantage of if you qualify for an auto title loan serviced by LoanMart:
- Competitive Interest Rates for Qualified Borrowers1
- No Hidden Fees or Prepayment Penalties5
- Convenient and Flexible Online Approval Process1
- No In Person Vehicle Inspection Required
- Keep Your Car During the Repayment Process
- Exceptional Customer Service
LoanMart offers industry-wide competitive rates and the ability to pay off your loan early without accruing any penalty—why should a customer be punished for being responsible, especially during a tough period of time?
Contact a title loan agent from LoanMart to speak about the previously listed benefits.1
How to Get an Auto Title Loan
You might be wondering- what is an auto title loan and how do I apply for one? The three step inquiry process with LoanMart can be simple and straightforward:
- Submit a Short Preapproval form Online or Call a Title Loan Agent from LoanMart at 855-422-7412
- Submit Your Required Documents
- Collect Your Money!1
See if you can qualify for an auto title loan by applying online or over the phone! Simply take advantage of a flexible process to get quick funding with a title loan serviced by LoanMart!1, 3