Can I Get a Loan With a Car as Collateral?
Searching for a way to apply for a loan with a car as collateral? A car title loan is a secured loan that allows a qualified individual to access a portion of their vehicle’s overall value. In order to obtain a secured title loan, an eligible applicant must pledge a qualifying car or truck as collateral to guarantee the loan.1
Apply for secured title loans today! You can conveniently apply online or call 855-422-7412 to speak to a LoanMart title loan agent. 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?
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 Repay the Title Loan
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 Car as Collateral?
With LoanMart, the application process for secured title loans can be 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 a car title as collateral:1
- A Car or Truck Title in Your Name
- Pay Stubs, Bank Statements, or Another Document 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 car as collateral, you can conveniently submit these documents online through a computer or mobile device!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 submission 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 loan with a car as collateral can be that simple!1
What Happens When I Get a Loan Using My Car As Collateral?
Using your car as collateral for a loan could be a quick way to get some extra money. To obtain a title loan, you can pledge your vehicle as collateral, which makes the loan a secured loan. You can potentially use the title of your truck or car to unlock your fast cash today!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 If the borrower is approved, they can sign a loan agreement, and a lien will be placed on their car’s title by the title lender once the loan is complete. The lien is the lender’s legal right to the asset, and if the borrower defaults, the lender can repossess the vehicle. The lien will be removed once the loan is completely paid off. However, the borrower can continue to drive their car as long as they make their payments on time each month.
You could be eligible for a loan amount based on your car’s value without the hassle of a lengthy application process. With title loans serviced by LoanMart, you can access a quick approval process without leaving your home! Just use your smartphone or computer to find out if your vehicle qualifies as collateral for the money you need today.1 3
Apply for a secured loan using a car as collateral today by filling out this pre-approval form online 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 car’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:
- Storage Fees
- Late Fees
- Repossession Fees
- 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, 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 title loan representative.1
Frequently Asked Questions:
Is it Safe to Use your Car as Collateral for a Loan?
It is important to understand the risks and benefits associated with collateral-based loans. Since your vehicle is used as collateral for the loan, the title lender can repossess your asset if you fail to repay the loan.
What is a Loan Called When You Use Your Car as Collateral?
A cash-loan obtained by using your car title as collateral is called a car title loan, auto title loan, or auto equity loan. A qualified borrower can use their car as collateral for the loan and obtain a portion of their vehicle’s overall value.1
How Do I Know If I Have Equity in My Car?
Knowing the current amount of equity in your car is important if you plan to use it as collateral for a loan. Equity is the difference between the current market value of your car and what you owe on your auto loan. If your car is worth more than what you owe, then your vehicle has positive equity.
Are Collateral Loans Risky?
Collateral loans can be risky because they require the borrower to use a valuable asset, such as their home or car, as collateral for the loan. It is important to reach out to your lender or loan servicer if you are having trouble paying your loan.
Where Can I Borrow Money with Collateral?
You can potentially borrow against the value of an asset by using it as collateral for a loan. Some of the most common collateral-based loans are title loans, home equity loans, and title pawns.