A car title loan is a type of secured loan available in the state of Michigan. If a person’s credit rating is preventing them from getting a traditional loan, then another option worth considering is a car title loan. But, how does one go about qualifying for a car title loan? This is a great question, here is more information on how to qualify for a car title loan in Michigan—along with details on one type of title loan, a ChoiceCash Title Loan, serviced by LoanMart.
What is a Car Title Loan, and Will Credit Be a Huge Factor to Qualify in Michigan?
A title loan is a loan in which a person uses their vehicle’s title as collateral. As such, a person’s credit score is not looked at too closely during the approval process.
Since a person’s credit score is not the biggest determining factor in the approval process, almost anyone can be approved for this kind of loan! So, it’s also possible that people with bad credit or no credit could also acquire a car title loan.
How to Qualify for a Car Title Loan in Michigan?
As previously mentioned, a vehicle’s title needs to be used as collateral for a person to be approved. Yet, that is not the only factor a car title lender will look at during the approval process. To qualify for a title loan, a title lender will also consider things like:
1) A Person’s Ability to Repay Their Loan
To prove to a title lender that they can repay their loan, a person can show past pay stubs or bank statements. Although, if a person is self-employed, unemployed, or retired, then they can use other documentation such as:
- Social Security checks
- Disability checks
- Bank statements
- Tax forms
2) A Vehicle’s Equity
After a lender sees that a person can pay back their loan, they will then need to determine the value of the applicant’s vehicle. In order to do this, a car title lender will have to do an evaluation. They will look at things like:
- Make & model of a vehicle
- Age of a vehicle
- Mileage of a vehicle
- Any damage a vehicle has
Once a lender evaluates a person’s vehicle and sees they can repay the loan, they will offer a loan amount. The amount that will be offered will not be for a vehicle’s full value. Instead, it will usually be for about 25% – 50% of a vehicle’s actual value.
How to Apply for a Car Title Loan in Michigan
Applying for a title loan can be completed in one of two ways. Depending on which lender a person is applying with, they may be able to go online or to a lender’s physical location. Once there, they will have an application to fill out. Generally, it will cover several questions in regards to the borrower, as well as the vehicle.
Other than filling out a form, a person will also have to provide several documents as well. The documents a person will need to provide are:
- Identification documents: To show a lender proof of identity, a driver’s license, state-issued ID, or a military ID, can be provided.
- Residency documents: These are important, as title loans are not offered in all states, so a lender will verify that the applicant lives in Michigan.
- Vehicle documents: To confirm that the vehicle being used as collateral is owned by the applicant, a car’s title will be used. Some lenders may ask for proof of insurance, along with some kind of vehicle inspection.
- References: Depending on the lender, a few references with their names, phone numbers, and the applicant’s relationship to those people will need to be provided.
Why You Should Consider a Choice Title Loan for Funding in Michigan?
If you reside in the great state of Michigan and you are in need of some funding, then why not consider applying for a ChoiceCash Title Loan serviced by LoanMart today!
Applying for a ChoiceCash Title Loan, is really quite easy, as the process can be completed online and in just a few minutes1. While a person could be funded within 24 hours, it’s entirely possible that a person could be funded the same day they apply1!
One of the best parts about a ChoiceCash Loan is that a person can still drive their vehicle while paying back their loan.