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Do you have a paid-off or close to paid-off vehicle? If so, vehicle title loans can be the answer to your financial woes. When you need cash fast, a title loan can be the most streamlined way to get it!
Since title loans have a flexible approval process, some borrowers can get their funds in as little as 24 hours if they qualify.3 Approval for a title loan is based upon two key factors:
- Your Income
- The Equity and Value of Your Car
If you are curious about what your car could get you through vehicle title loans, it’s easier than you think to check your car’s value. Find out what your car is worth today through title loans serviced by LoanMart when you fill out a short questionnaire.
How Do Vehicle Title Loans Work?
Car title loans are known by a few different names:
- Pink Slip Loan
- Vehicle Title Loan
- Auto Equity Loan
- Auto Title Loan
Regardless of their name, a vehicle title loan works by allowing you to offer your vehicle title as collateral for a loan. To do this, your vehicle must have a certain amount of equity to borrow from. Equity is just the difference between what you owe on the car and how much value it has in the current vehicle market.
The more equity your car has, the more you might be able to borrow through a title loan-if your income meets the qualifications!1 Since title loans are secured through collateral, the approval process can be much more flexible than traditional bank loans.
Title loans are secured loans, which come with more advantages than just cash! Here are some of the benefits you can take advantage of when you qualify for a secured loan like a title loan:
- Easy Approval Process: Since the loan is secured through collateral, the approval process is much more flexible in comparison to a bank loan!
- Get Your Cash Fast: Secured loans that used collateral can also be streamlined. Some borrowers can get their funds the next business day if they are qualfied!3
- More Competitive Interest Rates: Did you know that using collateral can make your interest rates more competitive? With a secured loan like a title loan, you are using collateral to make yourself less of a risk to the lender. Often, secured loans can have more competitive interest rates than other traditional loan options that are unsecured.
When I Apply for a Vehicle Title Loan, Can I Keep My Car?
If you are applying for vehicle title loans, you might be worried about the status of your car. For many borrowers, it is their main source of transportation. While this is a valid concern, you can often keep your keys while you repay your car title loan!
Title loan companies are not in the business of taking people’s cars. As long as you are making your car title loan payments on time, you can keep driving your vehicle like it is business as usual.
Payment history makes up a large portion of how your credit score is calculated. The more on-time payments you make towards your vehicle title loan, the more your score could potentially increase.
How Do I Know if My Car Will Qualify for a Car Title Loan?
The amount of equity in your vehicle is one factor that will determine whether or not you are qualified for a loan. But how do you know if your vehicle has equity? Equity is the difference between the current selling value of the vehicle on the market and how much you owe on the car.
Your car may have positive or negative equity depending on your situation. Your car’s current value is often determined by these factors:
- The Cosmetic or Surface Damage on Your Car
- The Mileage on the Odometer
- Your Vehicle Year
- The Make and Model of Your Car
- The Vehicle Style
Some vehicles will hold their value more than others! While it is true that newer vehicles are often more valuable on the resale market, every car can hold equity differently.
To check out how much equity is in your car, use this simple title loan calculator. By answering a few questions about your car, you could receive a title loan estimate in just a few minutes!3
Do I Need Perfect Credit to Apply for an Auto Title Loan?
When you have a less-than-perfect credit score, a lot of traditional lenders will turn you down for a loan. To a traditional lender of an unsecured loan, a low credit score is a sign that you are a risk to give money to!
With a secured loan, however, you do not need to have perfect credit to apply. Since the loan is secured through collateral, the asset takes most of the risk away! The more valuable your collateral is, the less your credit history matters.
A title loan lender will look at your income, your income-to-debt ratio, and the equity and value of your car. These factors are what your loan amount will be based on. A reputable title loan lender will not allow you to borrow more than you can afford! While you do not need perfect credit to apply for vehicle title loans, you will need a car with equity and income to support a loan payment each month. You might not be sure of what you can afford through vehicle title loans. Let a loan agent walk you through the prequalification process when you call 855-422-7412!
What Do I Need to Apply for Vehicle Title Loans?
Vehicle title loans should not be a hassle to apply for. Most title loans can be easy and hassle-free to apply for! Like any other loan, however, there are a few requirements to meet and documents that are necessary to apply for the loan.
To apply for a title loan, these are the simple requirements:
- Be at Least 18 Years of Age
- Have a Vehicle Title in Your Name
- Have a Steady Income
If you meet these requirements, there are a few documents that can help prequalify you and verify your identity when you apply for a car title loan:
- Proof of Income or Alternative Income: You do not need a traditional 9-5 job to apply for a title loan, but you will need some form of proof that you receive steady income! Bank statements, pay stubs, or even disability award letters can verify your income.
- Proof of Residence: Another piece of information that a lender will need to verify is your address. Utility bills, rental agreements, and even recent credit card statements can qualify as proof.
- Recent Photos of Your Car: You can easily skip an in-person vehicle inspection by just submitting photos of your car!
- Government or State–Issued ID: Many borrowers use their passport or driver’s license to verify their identity.
- Proof of Registration and Insurance, and Your Vehicle’s Title: It’s time to go to your glove box or safe and get these documents! This is to verify that you are the owner of your vehicle and you can drive on the road legally.
While these may seem like a lot of documents to need, they are quite standard for most loans! One of the benefits of choosing title loans serviced by LoanMart for finding funding is that you will be able to submit these online. Simply scan or email your documents in and skip the hassle of applying in person!
Can I Apply for Vehicle Title Loans Online?
Applying for vehicle title loans in person can be a hassle! That’s why there are ways to apply for title loans online from the comfort of your couch.
With title loans serviced by LoanMart, the approval process can be easy and quick! You can expect just these three streamlined steps when you head online to apply:
- Call or Click Online: Getting started on your vehicle title loan is as easy as calling a representative or going online! Simply fill out a few questions about your vehicle and income to get prequalified for a title loan. Or call a loan representative at 855-422-7412. It can take just minutes to do!3
- Send in Your Documents: After prequalifying for a car title loan, a loan agent will reach out and ask for a few documents to verify your identity. Fortunately, these documents can be submitted online for your convenience.
- Collect Your Cash: After receiving loan approval, the cash is yours to spend! Borrowers that work with title loans serviced by LoanMart can get their funds through a check in the mail, direct deposit, or at any local MoneyGram.