How to Get a Title Loan Against Your Car
Banks would have you believe they’re the only legitimate place in town you can go to get a loan even though in the internet age there are far more lending sources out there.
One of the problems with banks is that while they do cater to those looking for large loans that exceed $10,000 or $15,000, they’ve largely left out smaller loans for those who may need loans of about $500 or so.
What Does It Mean To Get A Loan Against Your Car And How To Do It?
It might be you who’s in the market for a loan of about that amount, but what if you want to avoid the trouble of getting it from the bank? If that is the case, you could take out a loan against your car.
You might not believe it, but there are states that allow you to take out loans using your vehicle that are known as car title loans.
Now you will need to check your state’s laws to see if they allow title loans, and also be aware that even if your state doesn’t prohibit car title loans, some local municipalities do.
Also, you usually cannot cross state lines legally to get a title loan if your state prohibits them. But if they do allow title loans in your state, it’s usually pretty straightforward to get them.
Keep in mind that every state they’re legal in will require that you are 18 or older, own your vehicle clear, and in some states you must provide proof of income so that they know you can repay the loan.
Taking a Loan Out Against Your Car
So how is taking out a loan against your car so easy compared to getting one from the bank? While it is a secured loan like the loan you use when you buy a vehicle, it’s different in that you’re using a vehicle you already own and are borrowing a portion of its equity.
Use Your Car as Collateral
You are putting your vehicle up as collateral when you borrow against it, and the other kind of loan most similar to that is a pawn loan where you offer certain items as collateral where they are stored away until you’ve repaid the amount borrowed.
But with a title loan, your vehicle isn’t kept by the lender. What they keep instead is its title until you’ve repaid the loan.
They do this so that you can take out a loan and keep driving since they understand you’ll probably need your vehicle to get to work so you can keep up with the payments.
Borrow Money Against Your Car
Usually when you borrow money against your car with title loans, you’re given on average 30 days to repay it, though in some states they stipulate that the lender must give you at least that amount. Some states do allow for tighter deadlines though so be aware of that.
Also, depending on what the lender’s terms are and what state laws are, there usually are ways to extend the loan deadline by paying the interest that’s due on it or another minimum payment which is also called a rollover.
But there are also some states that limit the amount of times you can do this.
Calculate Your Payment
If you have an idea of the amount of money you want to borrow, but aren’t sure about what your repayment amounts would be, you can use our title loan calculator to get an idea of what you will pay. The calculator can help you manage your finances when you get a loan.
Perhaps one of the greatest advantages to using car title loans is that you may qualify for a loan even if you have bad credit when you apply.
You can even get a title loan with no job. Since your vehicle is collateral and you usually will have an income verification, your credit history might not negatively impact the amount you get for a title loan.
And when you get your title loan cash, they are yours to use for any purpose. The lender doesn’t care what you use the money for, but they will want your signature on documents detailing your repayment details.
Contact Velocity Cash today if you want to take out a loan against your car.
Thank you for the loan.
My teenager son and his friends broke my garage door playing basketball this summer and I had no extra money to pay for the damage. I didn't know that I could borrow money using the value of my car so I did it to get money to get my garage repaired.
I got a title loan against my car from Velocity Cash earlier this year and they were great to work with. Being new to owning a house I had no idea how often I would need to be doing repairs on it! Velocity gave me a loan so I could fix my basement.