How Do Car Title Loans Work?
Auto title loans could allow borrowers to access the available equity in their car and turn it into cash! So the more equity you have to borrow from, the more money you could potentially access through a title loan!1 If you don’t know what equity is, don’t worry; it is simply the difference between your vehicle’s market value and what you potentially owe on it. While many car title loan borrowers prefer to estimate a vehicle’s value manually, LoanMart can provide you with an online calculator tool to easily obtain an estimate with a quote, free of obligation.1 You would only have to input a few details from your car to use the tool quickly3:
- Any Alterations or Modifications Made to Your Vehicle
- The Year a Manufacturer Released Your Car
- The Style of the Car, Which Refers to Its Shape and Size
- Any Interior/Exterior Surface or Cosmetic Damage Made to the Vehicle
- The Current Mileage on Your Vehicle
- The Make and Model of Your Car
After you receive an estimate on your vehicle’s equity, you could contact a title loan representative from LoanMart to find out if it qualifies as collateral.1
When you compare title loans against other loan types, you can see how favorable a car title loan could be to apply for.1 Since you use collateral to secure the loan, the risk of lending money to borrowers with a low credit score is minimized, which makes the approval process so flexible.1
The collateral for a title loan is the title to the borrower’s vehicle. But keep in mind that collateral can go both ways, as it also ensures title loan lenders that you will repay the loan amount in full! Not only that, but lenders will also place a lien on your vehicle title until you have completed the loan payments. A lien is the lender’s legal right to your asset while the loan is active. Once you finish the monthly installments, the lender will remove the lien! However, if you start missing payments and fail to repay the loan, the title loan lender has the legal right to repossess your vehicle.
What are Title Loans?
Can’t seem to make your paycheck stretch this month? If so, you may be looking for ways to earn extra cash! You could always try a fundraiser or ask friends and family for help, but it might not be enough for your needs. Fortunately, a loan could be a great resource to aid you in these challenging moments. While it may seem like there’s no solution in sight, a loan could be one of many financial tools you can use for these kinds of emergencies. The only problem is that many loan options have demanding requirements that can be difficult to meet! For example, traditional loans like personal loans are usually unsecured, which means that your credit history is the focus of the approval process. If you have bad credit, you might not have the opportunity to borrow money. A payday loan could be an easier option to apply for if your credit history isn’t perfect, but you would then deal with a stressful repayment schedule and high interest rates! So you may wonder– “Is there no way for me to alleviate this debt?”
Thankfully, a car title loan could offer a more suitable approval process for people from different credit scores and financial backgrounds!1 By simply using a vehicle title as collateral and meeting the right requirements, you could secure your loan without an issue!1 What’s even better than a flexible and convenient loan process is the idea of getting quick funding.1 3, When you inquire about title loans serviced by LoanMart, you could expect to receive money in as little as 24 hours if you qualify!3
Although many loan types require people to apply for funding in person, you could simply inquire about a title loan online!1 You could save gas money and time by doing every step from the comfort of your home or over the phone with LoanMart.1 Just open your internet browser and start from there!
Yet, even if you know the basics of auto title loans, you may still want to learn more about how title loans work. Read below for additional information, or speak to a title loan representative from LoanMart by dialing 855-422-7412.
Borrowers Must Have Reliable Income to Afford Auto Title Loans
Your vehicle’s title isn’t the only essential element in obtaining car title loans. A title loan lender also bases your approval for a title loan on your ability to pay them off! While it’s understandable to believe you need a 9-5 job to qualify, that might not be the case.1 You could always present an alternative form of income to prove you can responsibly make a title loan payment.1 As long as you can meet your due dates, you could get the opportunity to receive quick funding!1 3
Typically, borrowers pay back title loans over time, but with LoanMart, there are no penalties for wanting to repay them earlier.⁵ Simply dial the toll-free number at 855-422-7412 to reach a knowledgeable and friendly title loan representative!
What Documents Do You Need to Qualify for a Title Loan?
Before you sign the title loan agreement, you must submit a few documents to qualify for funding. Title loan agents would require these documents to verify your information and vehicle ownership. If you’re stressed about how difficult it would be to collect this information, don’t worry; it might be simpler than you think!1 You may already have these documents lying around the house! Once you have found all your documents, you can stay right where you are. Borrowers can send them directly to a title loan representative online without traveling!1
Submit the following general documents so you can quickly move on to the final step in the title loan inquiry process3:
- Recent Pictures of Your Vehicle: One of the requirements in obtaining an auto title loan is a vehicle inspection. While many loan options require conducting them in person, you don’t have to with a title loan serviced by LoanMart! You could bypass an in-person inspection by taking clear and visible photos of your vehicle’s front, back, driver-side door, passenger-side door, odometer reading, and VIN # (Vehicle Identification Number). You could scan the images and send them directly to a title loan representative online as soon as they are ready.
- Proof of Valid, Government/State-Issued Photo Identification: To prove your identity to a title loan agent, you must use a government-issued photo i.d. card. That could be your passport, driver’s license, or other certified state-issued identification cards!
- Car Title: Make sure your vehicle’s title is in your name before you use it as collateral. However, if your car is close to being paid off, you may still be able to use its title to secure a loan.1 What happens if you lost or misplaced it? You could always contact a title loan representative from LoanMart. They may be able to help you find out how to request a duplicate title or how to transfer a title to your name.
- Proof of Address: You could use various documents to demonstrate where you reside to a title loan representative. You could use recent utility bills, a lease agreement, mortgage statements, credit card statements, phone bills, mail, etc.
- Proof of Income or Alternative Income: Remember, to qualify for car title loans, you must be able to show that you can responsibly meet the payment each month. There’s no need to have a traditional occupation to validate that1; simply use alternative forms of income such as bank statements, pay stubs, settlement income, a letter of employment from your employer, retirement income, Social Security/Supplemental Security Income, pension income, or worker’s compensation to prove you can afford an auto title loan.1
- References: A title loan agent from LoanMart may ask you to provide personal or professional contacts. You could also give both if you prefer that.
How do the Interest Rates Work on a Title Loan?
A loan’s interest rate can make or break your loan experience. When you deal with high-interest loans, you could end up in a cycle of debt long after you’ve completed your payments. Plus, many of these types of loans have additional fees you weren’t aware of that could drain your wallet! Luckily, car title loans serviced by LoanMart could come with competitive interest rates that can help you save money!1
Most borrowers who need cash quickly might not have the time to look up every loan detail, especially when they have a limited period to cover their expenses. That is why people should be able to select a loan type that can benefit them presently! With title loans, you could access the funds you need with competitive interest rates in as little as 24 hours1 3 But the good things don’t end right there! There could be other benefits beyond that, and qualified borrowers could enjoy them!1
What are the Benefits of Acquiring an Online Title Loan?
The opportunity to have a title loan with competitive interest rates isn’t their only perk.1 Did you know you could access exclusive benefits when you inquired about one with LoanMart?1
Here are some of the benefits you could enjoy if you’re approved for quick funding1 3:
- Flexible Approval Process1: After reading this far about title loans, you may already know how easy it could be for you to apply for one.1 Unlike traditional loan choices, a borrower wouldn’t necessarily need a perfect credit score to qualify for emergency cash.1 So, the entire approval process can be flexible and convenient for many individuals!1
- Keep Driving Your Vehicle: When you begin your loan term, you wouldn’t necessarily need to give your car to anyone. Even though you’re using the car title as collateral for the loan, you can still drive and access your car. As long as you’re on time with your payments, you could continue to drive as you usually would!
- No Hidden Fees or Prepayment Penalties⁵: Many loan options tend to surprise borrowers with hidden fees that leave people in a tough financial spot. But with a title loan serviced by LoanMart, you wouldn’t have to worry about any hidden fees or balloon payments!⁵ You can also allow yourself to repay car title loans as early as you’d like since there are zero prepayment penalties!⁵
- Excellent Customer Service: One major advantage of asking about title loans with LoanMart is the kind and knowledgeable people that lead you to your money!1 You can anticipate talking to a title loan representative who understands your situation and would do whatever’s possible to help you. That is why they are available six days a week for extended hours to assist you with any questions or issues you may have!
Talk to a title loan agent today by dialing 855-422-7412 to learn more about these and other benefits you could earn when you qualify for an auto title loan.1
Do You Need Good Credit to Qualify for Car Title Loans?
As you may have read in the beginning, many unsecured loan lenders will deny borrowers with bad credit. Thankfully, your credit score isn’t the main focus during the inquiry process for a title loan!1 Since it works as a secured loan, you could still qualify, despite your credit history.1 However, it’s essential to recognize that most title loan lenders will run a credit check during the inquiry.
When a lender initiates a credit check, your credit will go through what is known as a hard inquiry check. That occurs when you inquire about a loan and agree to proceed with the loan agreement. But don’t let that discourage you from wanting to acquire the funds you desperately need! While it may take off some points from your credit score, it could recover with time and your actions.
Even if you aren’t happy with your credit, don’t hesitate to apply for emergency cash through a car title loan serviced by LoanMart.3 Simply take advantage of a flexible approval process and find out if you can qualify for the money in no time!1 3
Where Can I Get a Title Loan Today?
Now that you know more about title loans, the last step is determining if you qualify for cash. With a title loan serviced by LoanMart, you might not have to wait long to see if your vehicle and income meet the criteria to borrow money.1 3 You would only have to follow three easy steps to get through a flexible loan process in minutes1 3:
Call or Click:
The first part of obtaining a car title loan could be straightforward!1 Unlike federal credit unions, which are difficult to find a close branch, you wouldn’t have to go anywhere to inquire about title loans. Just submit a short form online or speak to a title loan representative from LoanMart at 855-422-7412.
Send Your Documents
Don’t forget to submit your documents quickly online!3 Through that method, a car title loan agent could quickly verify your information and respond within minutes!3
Collect Your Money!1
If approved for funding, you could get your loan amount in as little as one business day!3 A qualified borrower can choose from a few different ways to retrieve the funds, like setting up a direct deposit with their bank account, getting a mailed check, or picking up their money at any participating money transfer location nearby.
Bottom line: title loans could be the best choice when you need money now!1 You could just meet the necessary, basic requirements to obtain funds in a flash!1 3 Find out if you are eligible for a loan by going through a convenient approval process.1 Dial 855-422-7412 if you ever need assistance.