An unexpected expense could throw a wrench in your monthly budget. If you are suddenly struggling to make ends meet due to medical bills, car repairs, or other unexpected expenses, you might want to consider applying for a rapid title loan.

To obtain a title loan, you must use the title to your vehicle as collateral. This doesn’t mean that the lender will take possession of your vehicle, though. Instead, the lender will put a lien on the title until your loan has been paid off. In the meantime, you can continue to drive your vehicle while you make payments. How does a title loan work? Are you eligible for a loan? Here’s what you should know:

Am I Eligible for A Rapid Title Loan?

Some people assume that they won’t qualify for a title loan simply because they have never qualified for a traditional loan before. Don’t make this assumption. The eligibility requirements for title loans are very different from the eligibility requirements for traditional loans. As a result, many people who don’t qualify for a traditional loan may qualify for a title loan.

You may qualify for a title loan if you meet the following conditions:

• You are 18 years of age or older.
• You own a car, motorcycle, or RV.
• Your name is on the title to your car, motorcycle, or RV, even if it is not the only name on the title. 
• You have a reliable source of income.
• Your car meets a minimum value requirement established by the lender.
• You are willing to let the lender inspect your vehicle as part of the application process.

Your lender may have additional eligibility requirements, but in general, you may qualify for a rapid title loan if you meet the conditions listed above.

Do I Qualify If I Already Have Another Title Loan?

The title to your vehicle can only be used as collateral to secure one title loan at a time. In other words, if you have already taken out a title loan using the title to your vehicle as collateral, you cannot use the same title to take out another title loan. However, you can use the title to another vehicle to secure a second title loan if necessary.

You can also refinance an existing title loan. For example, if you already have a title loan with lender A, you can refinance the title loan with lender B. If you are approved, you will establish a new title loan with lender B, who will pay off your existing title loan. Refinancing your title loan might help you secure a better interest rate, which will result in a lower monthly payment.

If you took out a loan to purchase your vehicle, you may still qualify for a title loan even if you are still making payments on this loan. Your eligibility will depend on how much you still owe on the vehicle.

What Documents Will I Need to Submit to Apply for A Rapid Title Loan?

Every lender will require you to submit certain documentation to apply for a title loan. The exact requirements will vary depending on the lender. But in general, some of the documents you will need to submit include:

• Your driver’s license or another form of government-issued ID.
• Proof of income.
• Proof of residence.
• The title to your vehicle.

It’s important to note that salvage titles are not accepted as collateral for title loans. If your vehicle has a salvage title, you may not qualify for a title loan.

The title is the most important document because it is used as collateral for your loan. If you are having trouble finding the title to your vehicle, you can still apply for a car title loan. During the application process, simply let the loan officer know that you misplaced your title. 

How Much Can I Borrow?

The amount you are able to borrow through a title loan will depend on several factors, including the value of your vehicle. Because your car is used as collateral, the lender will need to know its value before determining how much you can borrow. To calculate its value, your lender will evaluate your vehicle’s make, model, year, mileage, condition, and trim level.

Your equity in your vehicle will impact how much you are able to borrow, too. Equity is the difference between your vehicle’s resale value and the amount you still owe on the vehicle. For instance, if you still owe $3,000 on a vehicle with a resale value of $8,000, this means you have $5,000 of equity in the car.

You must have equity in your vehicle to qualify for a title loan, and you cannot borrow more than the value of your equity. Lenders typically allow you to borrow up to a certain percentage of your equity.

Your ability to repay the loan will also affect the amount you are approved to borrow. Your lender will need to see proof of income during the application process to ensure you are capable of making consistent payments and repaying the loan.

Why Should I Get A Car Title Loan?

There are many reasons why you should consider taking out a car title loan to get the cash you need. Some of the many benefits of car title loans include:

• Fast processing times. Unlike traditional loans, title loans are processed very quickly. Some borrowers are even approved on the same day they submit their application.
• No restrictions on spending. Title lenders will not tell you what you can and cannot do with the money you borrow.
• No prepayment penalties. Prepayment penalties are often hidden in the fine print of traditional loan paperwork, but there are no prepayment penalties on title loans. This means you will not be charged an additional fee for paying off your title loan early. 
• Keep your car. You don’t need to give up your vehicle to secure cash through a title loan. You can continue driving it as you normally would while you make payments. 
• Easier to qualify. It’s easier to qualify for a title loan than it is to qualify for a traditional loan.

How Will A Car Loan Affect My Credit?

You might see a slight dip in your credit score if you take out any type of loan, including a title loan. In the long run, however, a title loan could actually improve your credit.

Title lenders report payment information to all of the main credit bureaus, which are the agencies that provide credit reports. Your payment history has a major impact on the calculation of your credit score. If you make consistent, on-time payments on your title loan, this could increase your credit score.

Taking out a car title loan will also add to your credit mix, which is the variety of loans in your credit profile. A car title loan may make your credit mix more diverse, which will increase your credit score.

How Do I Get A Rapid Title Loan?

You won’t have to read pages of instructions or spend hours filling out paperwork to apply for a car loan. The title loan application process is fast and straightforward. Here’s how it works:

1. Contact your title lender. Call 1-855-713-6522 to speak to a loan officer. You can also fill out a form on our website. If you choose this option, a loan officer will contact you shortly after.
2. Find out if you are approved. Your loan officer will tell you if you are approved and if so, for how much. Your loan officer will also provide more details about your loan, including the interest rate and term. 
3. Finalize your loan. This step involves submitting the required documentation to your lender and signing paperwork. 
4. Get cash. You will be able to collect your cash shortly after you are approved for a car loan.

That’s all it takes to get a car title loan. If you need assistance, your loan officer will happily answer your questions and guide you through the application process. 

How Can I Speed Up the Car Title Loan Application Process?

If you need fast cash, there are several steps you can take to ensure your title loan application is processed as quickly as possible.

First, make sure the information you provide to the lender is accurate. The lender will need to verify this information before approving your application. If some of the information is inaccurate, this could delay the approval of your title loan application.

You should also make sure you submit all of the required documentation right away. Your application cannot be processed until the lender has received all of the required documentation. The longer you take to submit this documentation, the longer it will take to approve your application. If you submit everything right away, you may receive same-day approval.

To avoid unnecessary delays, ask your loan officer what documents you need to submit and how you can submit them. Then, make sure you confirm that they received everything they need to continue processing your application. This way, you won’t have to waste time waiting for the cash you need to cover your expenses.