Money is tight and you’re trying to figure out how on earth you’re going to make rent next month. You considered getting a credit line increase on your credit card, but that wasn’t enough; so, you feel as though there is nowhere to turn. You start to consider your assets and what you can sell to make ends meet. When you consider your assets, think about your vehicle- is it paid off or close to paid off? You might be thinking- can I get a loan with my car title?
When it comes to needing extra cash, borrowers with less than stellar credit often count themselves out before exploring all of their options. One of the many benefits of receiving a loan with your car title is that your credit history is not the primary determinant of eligibility.¹
With title loans serviced by LoanMart, the borrower sets up their vehicle as collateral to secure cash through a loan.
How Does Getting a Loan with a Car Title Work?
The borrower can leverage a part of their asset. To secure cash through a title loan, an applicant will use their vehicle’s title as collateral. It is important to consider the vehicle’s value when determining the amount a borrower is to expect from a title loan. To get a loan with a car title, your vehicle must have a significant amount of equity. The value of a car is determined by the equity it holds.
- Positive Equity: Is your car worth more than the amount of money you still owe on it? If your vehicle is currently being financed, it could still have positive equity.
- Negative Equity: Is your car worth less than the amount of money you currently owe on it? If that is the case, your vehicle may have negative equity. If a car has negative equity, it may not qualify for a car title loan.
Determining the equity of your vehicle is paramount, as the worth of your car is often in direct correlation with the amount of money you can be approved for.¹
If you are still unclear on how to find your vehicle’s equity, connect with a title specialist through LoanMart here.
What Documents Do I Need to Get a Loan With My Car Title?
The great thing about qualifying for a loan with your car title is that the approval process can be streamlined and straightforward. If you need a hassle-free way to get your cash in a financial emergency, title loans serviced by LoanMart may be able to help.¹
There are only a few documents you’ll need to verify your identification, prove that you can repay the loan, show evidence that you own the vehicle, and showcase that you are in your state of residency.
- Photo ID – The government often issues this in the form of a driver’s license or even a passport. The purpose of this is to confirm that the person inquiring about a specific title loan can be verified.
- Vehicle Title – To get a loan with your car title, the vehicle’s title must be in your name. If the vehicle’s title is not currently in your name, the title can be transferred to you at your local DMV for a small fee. If your car’s title has been misplaced or lost, you can request a duplicate title similarly.
- Proof of Residency – Most title loans, such as those serviced by LoanMart, are available to residents in certain states, and title loans are not available in every state. To prove your residency, you can provide paperwork, such as a recent utility bill or credit card statement.
- Proof of Income – Eligibility for a car title loan and your loan amount is based on your income. As a result, you will need to verify your income during the inquiry process for a car title loan, and you can often do so with bank statements or pay stubs.
What do you do for a living? Do you work for yourself, or are you retired? Below are other sources of income that can still make the candidate eligible to receive a loan with their car title:
- Are you out of work due to an injury?: That ugly fall you had back in 2017 limiting your ability to work shouldn’t disqualify you from being eligible for a loan with your car title. The good news: if you can show proof that you receive worker’s compensation, you may be a qualified candidate for a title loan serviced by LoanMart.
- Do you have more of an entrepreneurial spirit?: Let’s face it: the corporate world is not for you. Those boring gray cubicles make you want to scream! You also don’t do well with others telling you how to do your job. You may not have to worry if you are self-employed or a small business owner.¹As long as you have proof of income, whether that be bank statements or other forms of verifiable income, you may still be an eligible candidate for a title loan.
If you are still unsure if your proof of income qualifies or disqualifies your eligibility for a loan, speak to a LoanMart representative who’s eager to help at 1-855-422-7412.
How Can Getting a Loan With My Car Title Help Me in These Uncertain Times?
Through the cash you may secure through a car title loan, you may be able to cover an unexpected expense or bill. Hard truth: life happens, and it’s hard to be prepared for every single situation all of the time. A new transmission or home repair can set your budget back months if you do not have the emergency funds to cover it. Below are only a few ways title loans may benefit you when the unexpected happens.
- Hospital Bills – You thought your insurance would cover the bulk of the procedure, but your doctors continuously want you to come in for a check-up. You thought you only had a few more episodes of radiation, but the health care professionals located another spot on your lung. Anyone who’s ever been in the hospital knows that sometimes the bills following the visit can be more alarming than the visit itself. Securing cash from a title loan could potentially help ease some of the financial burdens you have by providing you with the emergency funding you need to stay afloat during your most trying season.
- Weddings – Now, to finally discuss a more joyous occasion. The embarrassing truth: you never thought you’d get married. You wrote yourself off as too old or too seasoned to fall in love again. Then, suddenly you meet that special someone, and your whole world changes for the better. You want to have the wedding of your dreams, and it would be a shame not to be able to afford it. Receiving the cash you need from a title loan could make your life a lot easier: the cost of your wedding can be the least of your worries.
- Starting a New Business – That’s it! You’ve had it. Your boss has belittled you for the last time. All of your other coworkers get to work from home, but you’re the one having to go into the office for some reason. Not to mention the office is outdated and is in desperate need of remodeling. You take a deep breath and decide to just go for it; you start your own business. Funds from a title loan could serve as the start-up money every business needs to get off the ground.
The cash you could potentially qualify for through a car title loan can be significant for those untimely emergencies, as well as for starting a new venture.
How Does Inquiring About a Loan with My Car Title Impact My Credit Score?
Typically, a credit check is required when going through any financial approval process. This is in place to simply analyze the borrower’s financial history. From there, a lender will use this history to determine if a borrower is worthy of borrowing money. When you are looking to get a loan with your car title, you can expect:
- A Hard Credit Check: The hard inquiry occurs in connection with the loan inquiry before a pre-approval is extended. This will appear on your credit report and typically lower your credit score by a few points. However, these points can be easily regained with proper financial management.
It is important to note that credit is not the primary factor in the approval process for a title loan.¹Borrowers from diverse backgrounds and financial differences- from bad credit to late payments on their credit report- are still encouraged to still inquire about a title loan.¹
Stay Organized with Payments After Receiving a Car Title Loan
Great! You went through the process and received your emergency funds. You can finally get caught up on rent, pay that wedding planner, or start your own business. Before you get too comfortable, you realize you still have to repay the loan.
When speaking with a title loan agent, you will discuss the length of time you have to repay the loan, as well as the interest that will be applied to your payments.
Interest rates are in place to cover the cost of borrowing the loan, and they come in several different forms. When determining a strategy on how to repay the loan, make sure you are factoring in two variables:
- Principal Loan – The amount of money you are approved for when borrowing.
- Interest Rate – The cost of borrowing the money is often determined based on a principal loan percentage based on credit history and financial history.1
Now that you know what numbers to expect on your repayment expenses potentially, it’s time to put them on your calendar. Most borrowers repay their loans on a monthly basis in payments known as installments. When you are approved to get a loan with your car title through a car title loan serviced by LoanMart, you can expect an installment loan.
Set aside some room in your budget the month before, so that you can financially prepare for this expense. If you know you use your paycheck on the first of the month to cover rent and utilities, use your paycheck around the 15th to cover your repayment obligations. When you plan for your repayment it takes away a mountain of stress; so plan ahead by scheduling your payments.
Where Can I Apply to Get a Loan With My Car Title?
Title loans serviced by LoanMart can offer an incredibly streamlined approval process.¹ It can be as easy as three steps! You can have your cash in hand as soon as possible- typically, in one business day or less.³ Now, you’ve learned the ins and outs of getting a loan with your car title, and you want to begin the process. Before receiving your emergency funds, you will need to place the initial inquiry and obtain preapproval. Here is what you need to do:
- Step 1: Apply Online, Call, or Visit in Person
- Submit the necessary information online by clicking here on your electronic device. You can get started from your smartphone or computer.
- If technology isn’t your thing, no worries, you can place a call at 1-855-422-7412.
- The convenient part about title loans serviced by LoanMart is that you may be able to visit a participating location physically. Click Here to learn more!
- Submit Your Documents
You will need to submit a few documents to verify your information and income. The great news is that these are documents you more than likely already have in your home.
- A vehicle title in your name to a qualifying vehicle.
- A photo ID issued by the government: a driver’s license will suffice.
- Proof of income. This shows the lender your ability to repay the loan.
- Proof of residence. Most title loans serviced by LoanMart are available to those residing in the United States. Showing an electric bill or water bill with your name and address proves that you reside in the U.S.
Loan agents are in place to assist you if you need to email or fax over your documents. These agents are available six days a week! Borrowers also find it easier to simply snap a quick photo of their papers and send it in that way.
- Get Your Money¹
Once you submit your documents and everything looks good, you’ll choose how you want to get paid. After loan approval, you can spend your cash!