Are Title Loans Legal in Virginia?

Title Loan Borrowers Are Protected in Virginia

If you’re struggling with your finances as a resident of Virginia, you’re not alone. The rise of inflation has hit many Americans hard, damaging their bank accounts and lives. Many people live paycheck to paycheck, so they don’t have the disposable income to save up for a rainy day.

When you need money to cover an unexpected event, it can be challenging to find help. This can be even more difficult for people with poor credit histories, because traditional banks may be unlikely to lend to them.

If you feel stuck but need financial assistance quickly, you should inquire about title loans serviced by LoanMart!¹ With a fast and easy online inquiry process, qualified borrowers may receive funds within the same business day.³

How Do Title Loans Work in Virginia?

Title loans are secured loans that allow a person to borrow money off the value of their car in exchange for their motor vehicle title. If approved, a lien would be placed on the car’s title and removed once the funding is paid in full. They are considered ‘secured loans’ because a physical asset is used as collateral if the money isn’t repaid.

On the other hand, unsecured loans do not rely on the use of collateral during their agreements. Instead, traditional financial institutions would look at a person’s credit history when deciding whether or not to lend money. This is why it can be challenging to get approved for traditional loans and why car title loans can be a much more accessible option for people from various backgrounds!¹ Collateral helps to minimize the lending risk if a borrower has a less than perfect credit score.

Title lenders will consider a borrower’s credit score during approval, but they care more about two other factors:

• How Much Equity Is in Your Car
• If You Can Repay the Loan

The amount of equity in your car can affect your approval chances for a car title loan and how much funding you may receive. ¹

If you want to find out more about your vehicle’s equity, you can use this helpful calculator tool provided by LoanMart, free of obligation! Just enter in some basic information to get started. Additionally, you can head to websites like Kelley Blue Book to estimate your car’s overall value.

Title loan lenders will determine if a person can repay the loan by looking at how much income they make. You don’t need to work a traditional job to get approved for title loans in Virginia! ¹ Many alternative income forms may be accepted during the inquiry process.¹

What Are the Laws Surrounding Title Loans in Virginia?

If you’re interested in a title loan serviced by LoanMart, you should become familiar with the laws and regulations in Virginia. For starters, federal laws don’t regulate the rules surrounding title loans! Each state decides its statutes; therefore, it’s important to know the ones that apply to your area.

At the federal level, the most significant rule around title loans is under the Consumer Bureau for Financial Protection. This says lenders can only lend money to borrowers who can repay the money. That’s why it’s crucial to prove you make a steady income during the inquiry process for a title loan!

How Does Repossession Work in Virginia?

According to Virginia law, if a borrower falls behind on payments or violates the loan terms, the lender has the right to repossess the vehicle, sell it, and use the funds to make up for the defaulted loan. By law, the lender must inform the borrower ten days before repossession of the property that they are in default and must pay the outstanding balance.

The lender also must send a letter 15 days before the vehicle’s sale letting the borrower know when and where the sale will take place, as well as a written account of the title loan balance and costs incurred. The borrower can pay the outstanding fees and get their car back at any point during this time.

If the lender sells the vehicle for more money than the loan amount, they are not allowed to keep the surplus from the sale. Legally, they must return that money to the borrower. Also, title lenders cannot charge a borrower storage fees for keeping their vehicle after repossession.

How Am I Protected Under Virginia Law From Title Loans?

The good thing about the Virginia laws around title loans is that they protect borrowers from predatory lending practices. For example, online lenders are responsible for keeping and providing access to a detailed record of the loan terms and transactions involved with the agreement. That can protect borrowers from predatory loans by ensuring everyone is on the same page, and nothing shady happens!

Additionally, laws around title loans in Virginia prevent online lenders from presenting false advertisements or statements that can mislead a consumer. You can click here to read more about how Virginia laws protect consumers and how loan amounts, rates, and terms are set.

What Are the Requirements for a Title Loan in Virginia?

Now that you’re aware of the loan laws in Virginia, the next step is learning about the requirements involved. Compared to traditional bank loans from credit unions, car title loan requirements can be simple to understand!¹ They’re relatively straightforward, making them accessible to people from different backgrounds.

However, you must make yourself aware of them before inquiring. For a title loan agreement, you must:

• Be an Adult at Least 18 Years or Older
• Have a Qualifying Motor Vehicle Title in Your Name
• Have a Vehicle With Positive Equity
• Show Proof of a Steady Income or Alternative Income

You must be at least 18 years of age or older to inquire about this financing option. You can prove your age and identity with a government or state-issued photo I.D. card! You also must have a qualifying motor vehicle title under your name to move forward with a title loan serviced by LoanMart in Virginia.¹

If your car is not fully paid off yet, you may be asked to fill out an authorization form by the lender so they can obtain information about your existing agreement and pay it off. Virginia borrowers may be asked to complete the “Application For Transfer And Supplemental Liens” form before their loan is completed.

Next, you must have a vehicle with some positive equity. As mentioned previously, motor vehicle title loan approval and the loan amount will depend on a car’s value. ¹

Finally, you must show proof of a steady income. Virginia law requires that lenders verify a borrower’s income before approving funds. That’s because they want to make sure you will be capable of repaying the money! You don’t need to hold a traditional occupation to potentially qualify, however.¹   Below are examples of alternative income that may be accepted during the inquiry process:

• Social Security Benefits
• Worker’s Compensation
• Alimony/Child Support Payments
• Settlement Income
• Retirement or Pension Income
• Annuity Payments
• Some Self-Employment

Contact a title loan representative to determine if your income or circumstances will be accepted during the inquiry process by calling 855-422-7412.

What Are the Steps for Inquiring About Title Loans in Virginia?

Only three main steps are involved with inquiring about title loans serviced by LoanMart in Virginia.¹ Like the requirements mentioned above, the steps are relatively straightforward and uncomplicated!

1. Choose How You Want to Inquire About Funding

One of the most significant advantages to a title loan serviced by LoanMart in Virginia is that you can choose how to inquire about funding, and neither option involves visiting a physical location!¹ You can either fill out this pre-qualification form or call 855-422-7412 to speak with a title loan agent.

The pre-qualification form only takes a few minutes to complete and can be started anywhere you can access the internet on your smartphone or computer! ¹

2. Gather the Necessary Documents

After choosing how you want to inquire about title loans serviced by LoanMart, the next step is gathering the required documents.

Compared to a big financial institution, which may require lots of paperwork during their applications, the documents needed for a car title loan are things most adults have on hand!¹ You can always contact the Virginia DMV for replacement assistance if you’re missing any of the mentioned items.

For a title loan serviced by LoanMart inquiry, you will need:

• Government or State Issued Photo I.D.
• Proof of Residence
• Proof of Income
• Proof of Qualifying Vehicle Title
• Recent Photos of Your Vehicle

You can prove your age and identity by providing a government or state-issued photo I.D. Next, you must show proof of residence in Virginia. Title loan laws can vary depending on your state; therefore, it’s crucial to prove that you live in the one corresponding with your loan inquiry!

You can show proof of income by providing pay stubs from your job, or any alternative income sources mentioned earlier. Also, you will need to provide evidence of a qualifying vehicle title under your name. A title loan agreement depends on using the vehicle title as collateral for funding, so having one is essential.

You also will be asked to show recent photos of your car to show its current condition. The great thing about a title loan serviced by LoanMart is that you can conveniently send all these documents online via email or fax!¹

3. Get Your Money¹

Assuming you meet the requirements for a title loan serviced by LoanMart, send in the required documents, and pass approval, the final step is receiving your funds!¹ You can choose between three convenient options for picking up your title loan money as a qualified borrower:

• Direct Deposit Into Your Bank Account
• Receive a Check in the Mail
• Head to a Participating Money Transfer Location in Virginia

What Are the Advantages of a Title Loan in Virginia?

While there are risks associated with any financial agreement you enter, there are many benefits you can enjoy, especially with a title loan serviced by LoanMart!¹ Below are examples of the advantages you can expect from this loan option if you qualify.¹

Potential to Access More Funding:¹

Compared to payday loans or a credit card cash advance, you may receive a higher loan amount from a title loan serviced by LoanMart!¹ That’s because the potential loan amounts are determined by how much value is in a borrower’s car– if you have a highly valued vehicle with considerable equity, you may be approved for more money if you have the right income. ¹

With payday loans, you can typically only receive up to $500. With a cash advance from a credit card, you can only access a portion of your available credit line.

Keep Driving Your Car:

During a title loan agreement serviced by LoanMart, qualified borrowers can continue driving their vehicles while they repay the funds!¹ Virginia residents, like most Americans, rely on their cars to get around daily; losing that access could be incredibly inconvenient. If you make your monthly payments on time, you can keep driving your car like you usually would.¹

Many Repayment Options:

Paying back your funds from a title loan agreement is crucial! If you miss a monthly payment, you risk having your car repossessed by the lender. The great thing about a title loan serviced by LoanMart is that you have multiple options for paying back the money.¹ You can:

• Set up Automatic Electronic Withdrawals From Your Bank Account
• Pay by Phone
• Pay Through the Online Portal
• Send a Check in the Mail
• Head to a Participating Money Transfer Location in the Virginia Area

Inquire About Title Loans in Virginia Today

Title loans serviced by LoanMart can be an excellent option for residents of Virginia who need money quickly.³

The car title loan process can be easy, convenient, and fast, with some qualified borrowers accessing funds within the same business day as inquiring.¹ ³ Don’t wait for a paycheck advance or ask family to lend you money– inquiring about a title loan serviced by LoanMart could be a solution to consider.¹

Virginia Title Loans Could Be the Solution

Virginia residents with bad credit may not need to worry about approval during a title loan agreement.¹  While your credit history will be considered, it’s not necessarily the main focus, making it an excellent option for people from many financial backgrounds.¹

The Virginia title loan laws prevent predatory lending practices from taking advantage of consumers. Get started with a title loan serviced by LoanMart today by filling out this inquiry form or calling 855-422-7412.