Velocity Cash – Car Title Loan FAQ Page

Velocity Cash - FAQ

It is not unusual to run short of cash for unexpected bills, college tuition costs, home repairs or medical emergencies. With tighter loan restrictions these days, many people can’t qualify for traditional loans and are now seeking alternative financial solutions. If you’re in a bind and need cash now, learn how auto title loans work with these FAQ about car title loans from Velocity Cash.

What are title loans?

Title loans are generally short-term loans that use your automobile like a car, van or truck as collateral to secure a loan. Motorcycles can also be used as security.

Can I really get cash from my car title?

Yes, you certainly can. You turn over the title to us and in exchange, we’ll give you cash.

Can I still drive my car when I have a title loan?

Yes, you can drive your car as frequently as you like and anywhere you want to go.

Why should I consider a title loan?

Title loans don’t require a lengthy application process and lots of documentation like traditional loans, which can lengthen the loan process. Typically, title loans have higher payouts, good interest rates and payout within a day or less.

Do I have to state the purpose for the title loan?

Unlike traditional personal loans, where you must state how the loan money will be spent, title loans don’t have this requirement. You can use your cash for anything you would like such as:

  • Emergency cash.
  • Paying bills.
  • To cover security deposits.
  • Paying for college.
  • Making car repairs.
  • Paying down high interest credit cards.
  • Emergency doctor visits.
  • Buying groceries.

What determines the loan amount I can get?

Loan amounts can vary greatly depending upon the vehicle you are offering as collateral. The basis of a loan may be set by referencing Kelly Blue Book to get the value of a used vehicle. In addition, the factors listed below will affect loan amounts:

  • The overall condition and value of the automobile used as collateral. For example, we’ll look at the age, mileage, working condition and whether it has ever been damaged in an automobile accident.
  • Title lenders may use slightly different criteria when evaluating the value of a vehicle. In addition, each lender establishes loan amounts based on a percentage of the car’s value. For example, if the car’s value is $20,000, you may receive a loan amount for about 75 percent of the value or less depending upon the lender.
  • Title lenders must follow state laws. Each state may have different state regulations regarding loan amount limits. Even though, you may have a newer vehicle worth a great deal of money, it’s possible your loan amount may be slightly lower because of state law restrictions.

Does applying for a loan have any affect on my credit score?

Since credit scores are not pulled for loan approval, there is no hard inquiry on your credit score. So your score is not affected in any way.

Do title loans offer better interest rates and higher payouts than traditional loans?

In some circumstances, title lenders are able to secure higher payouts than traditional banking institutions because they are not limited by tight restrictions. Generally, title lenders are able to secure great interest rates for borrowers, which help to keep payments affordable.

Are there any benefits to title loans?

There can be several benefits to title loans. Listed below are the most common benefits that lenders might offer.

  • No credit checks required.
  • Cash in 24 hours or less.
  • Fast cash for any reason.
  • Simple online application.
  • Upfront loan estimates.
  • No application fees.
  • No loan consultation fees.
  • No prepayment fees.
  • No bank statements or income tax records required.
  • Several convenient store locations to collect your cash.
  • Many payment options to choose from.
  • Borrowers have no driving restrictions.
  • Stress-free loan process.
  • Low-interest rates.
  • Professional services.

Is my personal information kept confidential?

Yes, lenders go out of their way to see that your information is kept private.

What happens if I can’t make a payment?

You should contact your loan specialist immediately to discuss your situation. It may be necessary to adjust your payment amount or possibly roll over your debt into a new loan.

Do I need to have a bank account to qualify for a title loan?

A bank account isn’t a requirement for a loan. Most borrowers simply pick up their cash at a convenient loan store.

What types of vehicles can be used as collateral for title loans?

  • Cars.
  • SUVs.
  • RVs.
  • Motorcycles.
  • Trucks.

Is the application process different for a motorcycle versus a car?

No, regardless of the type of vehicle used for collateral the process is the same.

Will I get a payment plan tailored to my budget?

Yes, you’ll work closely with a loan agent who will talk to you about your sources of income, how much you earn and what is left after paying bills. Our goal is to make sure you have an affordable payment plan at your income level.

How fast is loan approval?

It may take you all of two minutes to fill out the convenient online application. You’ll likely receive your approved loan estimate in less than a minute.

How quickly can I get my loan money?

Assuming there are no unforeseen events, most loans payout within 24 hours or less.

How can I apply for car title loans?

Use our quick and easy online application to apply. To determine your loan estimate, we’ll need a small amount of information about your automobile being used as collateral. Simply fill in the form with the make, model, age, style and a relatively accurate estimate of the vehicle mileage.
To contact you about your title loan requirements and provide additional information about the loan process, we’ll need your full name, telephone number, and your zip code. An email address also comes in handy if you have one.

What are the minimum requirements for auto title loans?

  • All applicants must be at least 18 and have a government issued identification card or a driver’s license to confirm your age.
  • Your auto registration must list you as the registered owner of the vehicle.
  • Borrowers must have a clear title on the automobile submitted as collateral. The title should indicate there are no liens against the car, and you are not making car payments.
  • Vehicles must be in good running condition.
  • Applicants should be able to show they have proof of auto insurance.

What are the basic qualifications needed for a loan?

  • Equity in your vehicle.
  • A source of income.
  • The condition of the automobile.

Can I qualify if I already have a lot of bills?

Even if you have several bills, you can still qualify because your loan is secured with your automobile title.

Do I need to have income to qualify for a loan?

Preferably, everyone should have some source of income to qualify for a loan. Qualifying income might include:

  • Income from a job.
  • Unemployment benefits.
  • Pension benefits.
  • Social Security income.
  • Alimony money.
  • Disability benefits.

Can I get a title loan if I am unemployed?

Yes, it is possible to still qualify for a loan even though you may not currently be working. You’ll need to explain your situation to your loan specialist. You might be qualified based on unemployment benefits or another source of income.

Is it possible to qualify with no credit history?

Many young people who haven’t yet established a credit history are approved for car title loans every day. Credit histories are not needed to qualify.

Can people with poor credit scores qualify for loans?

Since credit reports and scores aren’t pulled or utilized for the loan qualifying process, you don’t need to be concerned about your score.

Can retired people qualify for title loans?

Many retired people qualify for a title loan using their retirement income money from a pension plan or their Social Security income.

Are there state regulations in place to protect consumer rights?

Yes. Many states have regulations that lenders must follow in order to be licensed to do business as a title lender.

What kind of state regulations may apply to title loan lenders?

Regulations can vary by state, but many regulations require that lenders must post the legal terms of the loan in the contract such as:

  • The total cost of the title loan.
  • The annual interest rate applied to the loan.
  • Payment amounts.
  • Payment schedules.
  • Fees to acquire the loan.
  • Administrative fees.
  • Miscellaneous fees.
  • Actions that could be taken if you default on the loan.

When will I receive my paper title back?

Borrowers receive their titles back immediately after they have made the last payment on their loan.

What kinds of people get title loans?

Just about anyone can qualify for a title loan. Velocity Cash closes many loans for teachers, homeowners, renters, cashiers, business owners, contractors, restaurant owners and anyone that needs cash now who meets the basic requirements.

What is the loan process?

  • Apply for the title loan.
  • Use our easy online application to initiate the loan process. There is no need to supply income tax records, bank statements or any information that only slows down the loan process. You only need to provide a little personal contact information and some info on your automobile.
  • Speak with a loan expert.
  • Each applicant will talk with a loan expert to discuss the loan estimate, which has been provided and the terms of the loan. You’ll also discuss your income sources and a payment plan that provides you with affordable payments based on your income.
  • Auto inspection.
  • All vehicles must complete a vehicle inspection at a convenient store location to make sure the auto meets the collateral qualifications for the amount of the loan.
  • The title.
  • In order to complete your loan agreement, the paper copy of the title must be turned over to your loan expert. Titles are then returned as soon as you have made the final payment on your loan.
  • Contract.
  • All borrowers must read and sign a contract to enter into a legal agreement for the loan.
  • Closing the loan.
  • After the title has been received and the contract is signed, your loan expert at Velocity Cash will close your loan. You’ll receive your cash at this time to spend any way you want.
  • Payments.
  • According to your signed agreement, borrowers are expected to fulfill the terms of the loan by making timely payments until the debt has been repaid.
  • If you are unable to make your payments, you should advise your loan agent. It may be possible to adjust the terms of the loan for lower payments or roll over the debt into a new loan to prevent your vehicle from being repossessed.

Are Payment arrangements flexible?

Yes, compared to traditional loans, they offer lots of flexibility. Depending upon the lender you use, you may have as little as 30 days to pay for a title loan or several months.
You’ll consult closely with your loan expert to find a manageable payment amount for your budget. You and your lender both benefit from affordable payments.

When are loan payments due?

Payments are due according to the schedule determined by your loan specialist.

Can I pay off the loan early?

Anyone carrying a title loan is welcome to pay off the loan early, and there are no prepayment penalties.

How can I pay off my loan early?

Each lender may have their preferences on how early loan payoffs are handled. However, some lenders may accept cash, charge cards or bank debit cards.

If I couldn’t afford to make the payments on my own, could I have a cosigner?

Many title lenders allow co-signers in order to approve loans.

Are my payments reported to the credit bureaus?

Some lenders may report payments to one or all three credit bureaus.

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