Traditional lenders may make you feel uncomfortable with the complex process of borrowing money, but car title loans are easy to obtain. As the need for a credit check and filling out a pile of paperwork are eliminated, you’ll be able to secure a loan with only your lien-free vehicle title as collateral. Understanding how to successfully take out a car title loan will ultimately make the entire application stress-free.
Gather The Right Documents
Although there isn’t much paperwork needed to get a loan using a collateral asset, it’s necessary to have proper documentation. Borrowers are required to bring proper identification to verify that they’re at least 18 years of age. The name on your ID must match the name that is printed on the title of the vehicle, otherwise it’s ineligible to use as collateral. A current utility bill is necessary to show proof of your address, and lenders also ask for employment verification. It’s a smart idea to speak with a title loan representative before visiting to make sure that you have everything that you need to complete the application. The majority of documents are returned the same day, but the car title will be held safely in the office until full repayment is made.
Request An Estimate
The estimate is one of the most important parts of securing a title loan, otherwise you are taking on additional responsibility with no reward. A loan must be able to satisfy your need for fast cash, but there is a limit to the amount you’ll be eligible to borrow. Every state provides their own regulations as far as a maximum amount, but the actual cash you’ll be offered is based on the value of the asset. It’s very common that the loan value will reflect the Kelley Blue Book value, and you’ll be able to make the decision to move forward once it is determined.
Income is a major factor in establishing a repayment plan with a title loan lender because they are relying on you to fulfill a contract. A traditional job might not be necessary to borrow money, but you are responsible for verifying eligible income sources for the loan agent to outline the contract terms. It’s your responsibility to only agree to a repayment plan that suits you budget, otherwise you risk losing an important asset.
Bring Your Vehicle for An Inspection
Lenders that provide the initial estimate online or over the phone need to verify the accuracy of the vehicle information. A quick inspection ensures that the title belongs to the correct vehicle, and that there is no damage that would decrease the total value. Borrowers don’t have to leave their car behind at all, so the inspection is simply a part of the protocol.
Drive Away With Cash In Your Pocket
Taking out a cash loan with a collateral vehicle title is a process that typically takes less than a day to complete. Regardless of how you choose to submit the initial application, our tips should walk you through the majority of the process. Your title loan agent is going to fully explain the entire contract before you settle the agreement. Once the contract has been signed, you’ll be able to drive away with the vehicle in your possession and the cash you need to get back on your feet.