Loans with a Car as Collateral

Can I Get a Loan With a Car as Collateral?

Are you searching for a way to apply for a loan with a car as collateral? A car title loan is a secured loan that allows borrowers to access a portion of their vehicle’s overall value. In order to obtain a car collateral loan, borrowers must pledge a qualifying car, truck or SUV as collateral to guarantee the loan.¹

With a loan serviced by LoanMart, qualified borrowers could get their fast cash in as little as one business day!¹

Can I Apply for a Secured Loan Using a Car as Collateral if I Have Bad Credit?

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Yes, you can apply for a secured loan with bad credit. Secured loans are usually much more flexible than unsecured loans because you are required to pledge an asset as collateral for the loan.¹

Title lenders will usually run a credit check during the application process. Although your credit history will be reviewed by the title lender, two other factors are the primary focus of your loan application:¹

• The Value of Your Car or Truck
• Your Ability to Make Monthly Payments

It is possible to get an online title loan even if you do not have a strong credit history. So don’t let your poor credit score prevent you from applying for the financial help you need! To learn more about applying for title loans using a car as collateral, visit the FAQ page or call 855-422-7412.¹

What Do I Need to Apply for a Loan Using a Vehicle as Collateral?

With LoanMart-serviced loans, the application process can be fast, straightforward and flexible. You will need to submit the proper documentation and meet a few simple requirements in order to obtain loan approval!¹

Here’s a basic list of the documents required to apply for car title loans with an auto title as collateral:¹

• A Vehicle Title in Your Name
• Pay Stubs, Bank Statements, or Other Documents to Prove Your Ability to Repay the Car Title Loan
• Recent Official Mail, Such as a Utility Bill or a Credit Card Statement, to Prove Your Address
• A Valid Driver’s License, Passport, or Another Government-Issued Photo Identification Card
• A Few Pictures of Your Vehicle (Must be Recent and Clear)

When applying for a loan with a vehicle as collateral, you can conveniently submit these documents online!¹ Additionally, since car title loans are secured by the title to your vehicle, the value of your asset must be verified during your loan application. Before you can get a title loan, a representative will examine your vehicle to assess its market value and ensure that it is in good condition.

One of the many conveniences of applying for a title loan serviced by LoanMart is that this inspection can take place online! To complete the appraisal process, you will need to upload a few recent and clear pictures of your car or truck, along with all of the other required documents. Applying for a car collateral loan with can be that simple!¹

What Happens When I Get a Loan Using My Car As Collateral?

Using your automobile as collateral for a loan can be a quick way to get funds quickly. When you obtain a title loan, you pledge your vehicle as collateral, which makes the loan a secured loan.^{1 3} With a car title loan, a lender will offer a qualified applicant a loan amount based on their income and a percentage of their car’s value. Typically, the applicant could access up to 50% of their car’s value by using their vehicle as collateral for the loan.¹

Once the loan is finalized, the lender will add a lien to the borrower’s vehicle’s title, which documents the lender’s right to the vehicle while the loan is outstanding. Once the loan is paid-off, the lien will be removed and the title is returned to the customer free and clear.

It’s important to note that an active lien gives the lender the right to the asset, which means that if the borrower stops making payments on the loan or otherwise defaults, the lender can repossess and sell the vehicle in order to recover the outstanding loan balance. However, borrowers who keep up with their payment obligations can continue to drive their car as usual. 

Apply for a car collateral loan today by filling out this online application or calling 855-422-7412 toll-free! Find out if you qualify for fast cash through a secured title loan!^{1 3}

How Much Can I Get by Using My Car as Collateral for a Loan?

Typically, a qualified applicant can access anywhere from 25%-50% of their vehicle’s value through a title loan.¹ The amount you can get through a loan by using a car as collateral will depend on a few different factors:¹

• The Vehicle’s Overall Value
• Your Ability to Repay the Loan
• Your Current State of Residence 

Your vehicle’s resale value and income are key factors that are considered by the title lender during your loan application! If your car has a higher resale value, you may be able to get a more substantial loan amount. Additionally, your state of residence could affect the amount of money you can obtain through a title loan.¹

Title lenders will check your income during the application process to ensure that you can repay the loan. However, you do not need a specific type of job to apply for a car title loan. As long as you have an alternative source of qualifying income, you could be eligible for title loan funding.¹

You can use your title loan funds to take a trip, consolidate debt, or even pay for an unexpected bill. Get started on your title loan application online or over the phone with LoanMart today! Title loan agents are available six days a week to take your call and answer any questions you may have. Just call 855-422-7412 to speak to a LoanMart title loan representative. 

What are the Risks of Applying for Loans Using a Car Title as Collateral?

Using your car as collateral for a loan could have many benefits! All loans, however, come with certain risks. It’s important to learn more about these risks before applying in order to understand what could happen if you don’t pay your title loan back. 

Some of the risks include the following:

• Car Repossession: If a borrower fails to make payments on their title loan, the lender can repossess the vehicle and sell it. Sometimes, a borrower is given the chance to catch up with their payments to get their vehicle back. However, in addition to catching up with their loan, they may need to pay additional fees, like:
  1. Storage Fees
  2. Late Fees
  3. Repossession Fees
  It is important to note that each state has different laws and regulations that can dictate how the repossession process is handled from start to finish. You may want to research your state laws regarding vehicle repossession before you apply for a title loan online or over the phone. It is incredibly important to make your payments on time each month! If you are struggling, make sure to contact your lender before you default on the loan so they are aware of your situation. Most lenders could be willing to work with you as long as you are upfront about your financial situation.
• Damaged Credit: Failure to make payments on a loan can damage your credit score. Payment history accounts for approximately 35% of your credit score, so it is extremely important to pay your loan back on time. You can potentially avoid this risk by setting up automatic withdrawals from your bank account, so you do not forget to pay. Or, contact your lender if you cannot meet the current payment schedule.

Where Can You Apply for Secured Loans by Using a Car Title as Collateral?

Looking to apply for a secured loan by using a car as collateral for the loan? Once you know where to look, then you can find the best loans by using your car as collateral!

Applying for a loan with your car as collateral can be straightforward and simple, even if you have a bad credit history. With LoanMart-serviced loans, you can conveniently apply online or over the phone with no hassle! There’s no need to leave your home to apply for quick funding through a car title loan.^{1 3} The LoanMart customer care line is open 6 days a week for extended hours if you have any questions about applying for loans using a car title as collateral. You can begin your application by filling out the pre-approval form online or calling 855-422-7412 to speak with a representative.¹