Looking to get a loan against your car? A title loan could be a great resource to use when you need fast cash to make ends meet. Car title loans can allow you to borrow money against your car by using its title as collateral for the loan!
With a title loan, there are a few requirements you’ll need to meet before applying, including the following:1
- A Vehicle Title in Your Name
- A Qualifying Car with Equity
- A Steady Source of Income
With these three qualifications met, it is easy to use your asset and turn it into cash. A car is often the most valuable asset a customer has. You can get access to the cash you need when you borrow money against your car!1
How You Can Borrow Money Against Your Car
A title loan can allow you to borrow money against your car and make the most out of your asset. Title loans are secured loans, meaning that your vehicle’s title will be collateral for the loan. Your eligibility and loan amount for a title loan will be based predominantly on the value of the car and your income.1
With a title loan, a borrower is using their vehicle’s title instead of their credit to borrow against their car. While you will be using your vehicle’s title to secure that funding, you can keep driving your vehicle like it is business as usual if you make your payments on time!1
A lien will be placed on your vehicle’s title, and that allows you to obtain the cash you need through a title loan. A lien is the title loan company’s legal right to your vehicle until the loan has been paid in full. After the loan is paid off, your title is yours again, lien-free! You can use your vehicle’s title as collateral for the cash you need when you are faced with a tough financial situation.
Do You Need Perfect Credit to Apply for a Loan Against Your Car Title?
No, you do not need perfect credit to get a loan against your car title. While many traditional types of loans require perfect credit, a title loan will not. Title loans are an alternative type of funding option that was created to help borrowers without a strong credit history. Since collateral is used to secure the funding, a borrower’s credit history will not be the focus of the approval process, although it will be considered.
Instead, the loan agents will focus on these two factors:
- The Borrower’s Income and Ability to Repay the Loan
- The Value of the Collateral
Eligibility for a title loan and the loan amount will depend almost solely on these two factors! Even if you do not feel confident with your credit history, you may still qualify for a car title loan with a steady income and a valuable form of collateral.1
What is an Unsecured Loan Vs. A Secured Loan?
If you are curious why a title loan can be so flexible during the approval process, the first step is to look at the type of funding it is. There are two main types of loans:
- Secured loans
- Unsecured loans
Unsecured loans do not require a form of collateral during the approval process. When an unsecured lender is considering an applicant, they will look at their income and their credit history to determine if they are a risk to lend to.
With a secured loan like a title loan, the collateral assumes most of the risk, and it makes the approval process much more flexible. Borrowers from all different types of credit histories and financial backgrounds could qualify for a secure loan like a title loan!1
The Documents You’ll Need to Borrow Money Against Your Car
Before you can obtain approval for a loan against your car, you must submit a few documents to verify your information. With loan options like ChoiceCash title loans, a borrower can complete the approval process online.1
This means that a loan agent will need a few documents to be submitted during that time to verify their information. Typically, you can expect to need the following documents to borrow money against your car:
- Proof of Income: Since your eligibility will depend on your income, you can expect to need some form of proof that you can afford a loan payment. While most borrowers will use their pay stubs or bank statements, other forms of alternative income are also accepted. Just ask the loan agent what to submit!
- Proof of Address: If you have a recent utility bill or credit card statement lying around, it can be used to prove your residence.
- Recent Photos of the Car: You can skip an in-person vehicle inspection with ChoiceCash title loans by simply submitting a few photos of your car and odometer!
- Car Title: Before it can be submitted, the car’s title must be in your name. If it is not, you can request this change at your local Department of Motor Vehicles.
- Photo ID: Since this ID must be government issued to qualify as proof of identification, you can use things like your driver’s license, passport, or even military ID.
Luckily, your documents can be submitted online through the ChoiceCash website for your convenience!
How Much Money Can I Get Through a Loan Against My Car?
The amount of funding you can receive through a car title loan will depend largely on the value of your collateral! When you borrow money against your car, you can access your vehicle’s equity and turn it into cash.
Your vehicle’s equity will depend on a few factors:
- The Make, Style, and Model of the Car
- The Year the Car Was Made
- Condition and Modifications to the Vehicle
- Current Mileage on the Odometer
ChoiceCash title loans created an online tool called the title loan calculator. By simply inputting this information into the tool, a borrower can easily get a free title loan quote and an estimate of their vehicle’s equity!1
Where You Can Borrow Money Against Your Car Online
Ready to see if you qualify to borrow money against your car? ChoiceCash title loans can make the inquiry process easy for you! The entire approval process has been streamlined into just three simple steps:
- Submit a Loan Inquiry Online or Over the Phone
- Send in Your Documents
- Find Out if You Can Get a Loan Against Your Car Title!1
Getting started is as easy as heading over to the website and filling out a short inquiry form. Or, get started with a call to a representative at 855-422-7402. Loan agents are available seven days a week for extended hours to get you the financial help you need!1 With ChoiceCash title loans serviced by LoanMart, qualified borrowers can get their cash in as little as 24 hours.1