Medical emergencies, car accidents, and other situations can arise when you least expect them. Situations like these can lead to unexpected expenses, and unfortunately, many people can’t afford to cover hundreds or thousands of dollars in extra bills. If you need fast cash–and you own a vehicle–a title loan might be the solution.
A title loan is a type of secured loan, which means it is backed by collateral. To get a title loan, you must use the title to your vehicle as collateral.
Your car plays an important role in the title loan application process. After all, it serves as collateral to secure your title loan. But how do title loans work? Will the title loan company need to see your vehicle during the application process? Or will lenders issue title loans without seeing the car? Here’s what you need to know:
How Do Title Loans Work?
First, it’s important to understand the basics of how title loans work. You now know that the title to your vehicle is used as collateral to secure your title loan, but you may not know what that really means.
Some people think that they will have to give up their vehicle in order to get a title loan, but that’s not the case. You can continue to drive your vehicle as you normally would while you repay your loan. In the meantime, the title loan company will either hold onto your title or put a lien on it until your debt has been paid off. The title loan company will return your title or remove the lien from it once your loan has been completely paid off.
A lender will not cause you to lose access to your vehicle unless you fail to repay your title loan. In this case, the lender has the right to take possession of your vehicle to satisfy your debt.
What Do You Need to Get A Title Loan?
Every title loan company may have slightly different requirements and application processes. In general, though, be prepared to provide the following documents during the title loan application process:
- The title to your vehicle
- Your driver’s license or another form of government-issued ID
- Proof of residence (driver’s license, utility bills, lease agreement, etc.)
- Proof of income (recent tax returns, pay stubs, bank statements, etc.)
- Proof of auto insurance
Make sure you talk to your title loan company to find out what documentation qualifies as proof of residence, proof of income, and proof of insurance. Acceptable forms of proof may vary from lender-to-lender.
There’s no need to panic if you cannot find the title to your vehicle. Let a loan officer at the title loan company know about your situation as soon as possible. Your loan officer should be able to help you obtain another copy of your title so you can complete your application.
How Much Can You Borrow With A Title Loan?
The amount you can borrow with a title loan will vary depending on several factors, including:
- Your income: Your lender will assess your income to determine how much you can afford to repay.
- Your car’s resale value: Because your car is used as collateral, the lender needs to know how much it is worth before determining if you are eligible for a title loan and if so, how much you can borrow. You cannot borrow more than the value of your vehicle.
- Your equity in your vehicle: Your equity is the difference between your car’s resale value and the amount you still owe on it. You cannot borrow more than the value of your equity.
In general, title loan amounts can vary from $2,510 to $50,000.
What Factors Will Impact Your Car’s Resale Value?
Your car’s resale value will directly impact your eligibility for a title loan and how much you are able to borrow if you are approved. Remember, you cannot borrow more than the value of your vehicle. In fact, most lenders will only allow you to borrow up to a certain percentage of your vehicle’s resale value.
Title loan companies consider a number of factors when calculating the value of a vehicle, including:
- Make
- Model
- Year
- Mileage
- Condition
- Trim level
How Do Title Loan Companies Calculate Your Car’s Resale Value?
Your title loan company must know how much your car is worth before approving your title loan application. For this reason, the title loan company will need to calculate the value of your vehicle during the application process.
The valuation process can vary depending on the title loan company. Some title loan companies may ask you to bring your vehicle to a specific location for an inspection.
Other companies may send someone to your home, workplace, or another agreed upon location to perform the inspection. This is a more convenient option since it allows you to avoid the hassle of traveling for an inspection. Either way, the inspection process shouldn’t take long.
Your title loan company may also give you the option of submitting pictures of your vehicle in lieu of an inspection. You can use your smartphone to take pictures of your vehicle so the entire process should only take a few minutes. This can be a convenient option, but it’s not offered by every title loan company.
If your lender gives you the option of submitting photos, make sure you know what type of photographs you need to provide. The title loan company may ask you to take pictures of specific parts of the vehicle. For example, the lender may ask you to submit a clear photo of the odometer that shows the vehicle’s current mileage.
Before applying for a title loan, ask the title loan company about their valuation process. This way, you know what to expect during the application process.
How to Apply for Title Loans
By now, you should have a better understanding of the title loan application process. If you’re ready to get the fast cash you need, follow these steps to apply for a title loan from I Need Cash Now:
- Get in touch with our loan officers. You can call 855-713-6522 to speak to a loan officer directly. Or you can submit your information using the form on our website and wait for a loan officer to contact you.
- Review your free quote. The loan officer will ask you to provide information about your vehicle, including its make, model, year, and mileage. Then, the officer will prepare a free quote based on this information. Review the details of this quote to learn how much you can borrow, the term and the APR.
- Finalize your loan. If you’re satisfied with your quote, you can finalize your loan by signing and submitting the required documentation. Your loan officer will explain what you need to do to complete this step.
- Collect your cash. Title loans are processed quickly, which means your cash will be available shortly after your application is approved. You can either pick up your cash in person at one of our convenient locations or arrange to have it sent to you via check or wire transfer.
You’re just four short steps away from securing the cash you need to make ends meet. Don’t wait any longer–contact us today to start your application.
