How Do Online Title Loans Work?
It’s understandable to wonder, “How do title loans work?” if you are thinking about using your vehicle as collateral for a title loan in order to obtain emergency funding. A title loan is simply a type of secured loan that can allow you to borrow against the value of your car, truck, or SUV. By pledging the title to your vehicle as collateral to secure the title loan, you can typically access up to 50% of your vehicle’s total value.1
Qualified borrowers can use their title loan proceeds to consolidate debt, pay for a large expense, or even cover the costs associated with an unexpected surgery.1
In order to apply for an online title loan, you must meet the initial criteria and upload a few documents online to obtain loan approval:1
These documents can also be sent to a ChoiceCash title loan agent through email or text message for your convenience. If you intend to borrow against the value of your vehicle through a title loan, its value must be verified through an inspection, but this inspection does not have to take place at a physical location. Instead, when applying for a ChoiceCash title loan serviced by LoanMart, you will be asked to provide recent and clear pictures of your vehicle in order to complete a vehicle inspection. It’s that simple!1
Once your documents have been verified for completeness, you will receive an electronic contract to review and sign. If you are eligible for a car title loan, a lien will be added to your vehicle’s title by the title lender after the loan is funded. Until the loan is completely paid off, this lien will give the title lender a legal right to your automobile. But, you will still have access to your vehicle while you are repaying your title loan, and once the loan is completely paid off, the lien is removed by the title lender! If you own your vehicle outright, you will be asked to send in the title to your lender using a pre-paid label. However, you do not need to own your car outright to apply for a title loan! It is possible to qualify for a title loan even if your vehicle is still being financed, but the title lender may ask you to complete and sign a form authorizing them to pay off your existing car loan.
How Do Title Pawns Work?
Are you stuck between applying for an auto title loan and a title pawn? You might be asking yourself, “How do title pawns work?”
Although the terms title loan and title pawn are often used interchangeably in some southern states like Georgia, there is a slight difference between them. A title pawn works similarly to a car title loan by allowing you to borrow money by using your car as collateral for the loan. If you need extra cash, you can try to pawn your vehicle title at a pawnshop with a pawnbroker or apply for a title pawn online with a title pawn lender.
If you qualify for a car title loan, you will be able to maintain access to your vehicle throughout the duration of the loan as long as you keep up with your monthly payments. However, if you pawn your vehicle title at a pawnshop and do not work with a title pawn lender, the pawnbroker will typically keep your vehicle on-site until your loan is paid off.
How to Get a Title Loan With Bad Credit?
Looking to learn more about how to get a title loan with bad credit? Subprime applicants are often seen as undesirable by traditional lenders because they are a high credit risk. Therefore, it will be challenging to obtain approval for an unsecured loan without a good credit score. But what exactly is bad credit? Well, according to Investopedia, a person will usually have bad credit if they have a history of not paying their bills on time or have high credit utilization. A credit score below 670 on the FICO scale is considered to be a bad credit score.
If your credit score is low, you may not be able to get quick funding through an unsecured loan from a credit union, bank, or online lender. However, with car title loans, your credit history won’t be the main focus of your loan application. Collateral is used to secure the loan, so the risk that you pose to the lender if you have a bad credit score is lowered because the title lender can legally repossess your vehicle if you default on the loan. But, as long as you make your payments on time each month, you will be able to maintain access to your primary method of transportation.
If you have a vehicle title in your name and proof of income, you may still be able to qualify for a ChoiceCash title loan with bad credit!1
Contact a ChoiceCash title loan agent today at 855-422-7402 to see how you can apply for a car title loan without a perfect credit score! If you qualify for emergency funding, you can access competitive interest rates and obtain your loan proceeds in as little as 24 hours.1
How Do Car Title Loans Affect Your Credit?
So, how do title loans affect your credit? Be aware that whenever you sign a loan contract, you agree to repay the loan according to the terms laid out in the agreement. If you default on your auto title loan, you are not complying with the terms of your loan agreement. Additionally, defaulting on a loan can negatively impact your credit!
Defaulting on your title loan may result in the title lender repossessing your vehicle, and having a repossession on your credit report can lower your score because it is a derogatory mark. If you end up losing your car to repossession, the seizure of your asset will remain on your credit report for seven years, and that can affect your ability to secure loans and other types of credit in the future.
Most title lenders prefer to avoid repossessions, so if you are struggling to keep up with your payments, it is important to reach out to your lender or loan servicer and discuss your financial difficulties before you default on your loan. If your loan is in good standing, you could try to refinance your current title loan to potentially obtain better loan terms!1
Using a budget to prioritize your title loan will also help you stay on top of your monthly installments and potentially avoid loan default. If you need to, you can set up automatic payments from your bank account so you don’t forget to pay an installment! If you have any questions about how car title loans affect your credit score, dial 855-422-7402 to reach a ChoiceCash title loan agent today.
What are Two Disadvantages of a Title Loan?
Although car title loans may be an option to consider if you need emergency funding, you may wonder if they have any disadvantages. The truth is that, like any other loan option, an auto title loan does have a few potential drawbacks.
Here is a brief overview of the two potential disadvantages associated with a typical auto title loan:
- Vehicle Repossession: Car title lenders can repossess your vehicle if you fail to repay the loan. Although you may not be able to avoid sudden financial hardship during the repayment process, you can be proactive and communicate with your lender or loan servicer and review your options before you default on your car title loan.
- Lowered Credit Score: Defaulting on your title loan can lower your credit score, so it is important to prioritize your loan payments and reach out if you are struggling to keep up with them.
Are you still wondering, “How do title loans work?” Give us a call at 855-422-7402 today to learn more about ChoiceCash title loans!
Where Can I Apply for a Title Loan Online?
Now that you know more about how title loans work, you can apply for one online or over the phone today! Why wait to find out if you can unlock emergency cash with your car’s title?1
With a ChoiceCash title loan serviced by LoanMart, it has never been easier to apply for quick funding. Here’s what you can expect the simple, three-step application process to look like:1
- Submit a Title Loan Inquiry Online or Over the Phone: You can choose between submitting a loan inquiry online or over the phone with a ChoiceCash title loan agent at 855-422-7402.1
- Send Your Documents: Upon initial approval, you must submit a few documents online so that a ChoiceCash title loan agent can verify your information, as well as the overall value of your vehicle. You can also send these documents through email or text message to a title loan representative.
- Get Your Title Loan Money: If you qualify for emergency funding through a ChoiceCash title loan, you could choose from one of the following ways to collect your loan proceeds:1
- Check in the Mail
- Direct Deposit to a Bank Account
- Pick Up Your Funds at Any Participating Money Transfer Location Nearby
- Fund transfer to your debit card
If you qualify for a ChoiceCash title loan serviced by LoanMart, you can expect competitive interest rates, no balloon payments, and zero hidden fees.1 Call 855-422-7402 now or click here to get started and see if you are eligible for instant pre-approval!1