Is It Hard to Get a Title Loan?
No, it is actually very easy to get a title loan if you own your car free and clear with no liens. You can use the value of the vehicle to borrow money against it.
A car title loan is a type of secured loan which uses any equity built up in your vehicle as collateral. While you may have found it difficult to get approved for an unsecured loan in the past, a title loan is a lot easier to get approval for, as the equity in your car provides security for the loan.
Unlike regular unsecured loans, you do not need to have a very good or excellent credit rating for approval.
Sure, you will be asked to provide employer or income information and your ability to make the payments will be considered; but, your credit history is not as much of a factor when applying for a car title loan.
Depending on the lender, you can usually borrow up to 60%-70% of the value of your car. This could also vary depending on the state in which you live.
For example, California sets a cap on car title loans at 36% of the value of your vehicle. Therefore, you will not be able to borrow as much in California as you may be able to in other states like Texas.
Requirements for a Title Loan
Applying for a title loan is relatively easy, and in most cases can be done online for free. You should be prepared to provide:
- A title proving that the vehicle is paid off
- You will be asked about your employment history or your source of income, like unemployment
- Proof that you are able to make the payments
- You must provide accurate information concerning the year, make, and model of your car to determine its value.
How Does the Online Application Process Work?
- Fill out and submit your application through the easy online form.
- You may be asked for additional information after your initial submission.
- Underwriters or a loan representative will take a look at your application and talk to you about a loan amount.
- Upon approval, you can get your money within 24 hours.
- You can continue driving your car as normal, but you need to turn in your title to secure the loan.
How Can I Benefit from a Car Title Loan?
There are many benefits of an online car title loan:
- The online application is easy and very fast.
- The loan contract is very easy to understand.
- Borrow only as much as you need.
- You can receive your cash very fast – usually within 24 hours.
- Your credit history isn’t an important factor.
- You may even be approved with no credit.
- Keep driving your vehicle as usual.
- Make early payments anytime you want.
Understanding Fees and Interest Rates of a Car Title Loan
Interest rates and fees are generally higher than unsecured loans, but they will not be as high as many other types of secured loans or payday loans.
In fact, many of the fees and rates a lender can charge are regulated by the state you live in, which make rates and fees more reasonable.
It is always best to check with your lender when applying to help you determine if a car title loan is best for you.
Before you accept the loan, make sure you understand what the payments will be, the fees included, and how fast you may be able to pay off the loan.
You should not be penalized for making early payments, but always make sure you are able to do so without penalties.
Apply for a Car Title Loan Today
Car title loans are a great option and are not hard to get if you need fast cash in a pinch. Now that you know the answer to “is it hard to get a title loan,” submit a free online application today and receive your needed cash within 24 hours.