Are you faced with bills you can’t pay? You may have more financial resources to consider than you might think. In these challenging circumstances, many people would choose to rely on a loan to help them cover those unexpected expenses. The problem with this is that for most loan options, eligibility is heavily dependent on your credit score or your ability to repay in a small amount of time.
This may be inconvenient if your credit isn’t great, or if you cannot afford to pay back a loan in a tight window. Thankfully, there might be a flexible way for you to get the money you need, without all the hassle.
With a car title loan, an applicant’s car title will serve as collateral for the loan. The use of collateral can turn a car’s available equity into cash!¹ The chances of getting funded with a title loan can potentially be much higher than that of other loan options.¹ If you want to learn more about how the approval process works, the experts with ChoiceCash Title Loans are here to break it down.
Finding the Equity In Your Car to Use it as Collateral for a Loan
Knowing your vehicle’s equity could be helpful before inquiring about a title loan. The equity in a car can be calculated by subtracting the total amount you still owe to the bank or dealership from the vehicle’s actual value. You can always find your car’s equity by doing these manual calculations, getting an estimate from a professional assessor, or getting an appraisal from a dealership. Still, this could take time when you need money now.
With ChoiceCash Title Loans serviced by LoanMart, you can skip the hassle of finding your car’s equity by yourself. Instead, use the online calculator tool to get a free estimate in just a few minutes!1 You would need to input a few details about your car to get started. Keep in mind these details are used by a loan agent to see how much value you could get from your vehicle:
- The Make, Model, and Style of the Vehicle
Some makes or models can hold more value than others, which helps to slow their depreciation. Typically, a car will start to depreciate in value as soon as it has been driven off the dealership lot. Suppose the car is a popular make or model. In that case, it can often retain value, no matter what year the manufacturer made the vehicle. Some of the top popular models include the Ford F-Series, Chevrolet Silverado, and Ram Pickup. If the car has considerable fuel economy, that could also add a high-value rate.
The vehicle’s style, such as the paint and technology packages, contributes to its value. The style can refer to minivans, sports cars, convertibles, station wagons, or other variations.
- The Year the Vehicle was Manufactured
Recent cars often have more value than older models. Newer cars also mean that the vehicle has less mileage on it, which increases its value. But if the car comes from a popular make or a classic car, it may still have an opportunity to get a high resale value.
An older car may not seem like it would qualify as collateral for a car title loan, but when its value is being calculated, its condition can hold more weight than the year. If the vehicle has been well maintained, it could still qualify for a title loan.¹
- The Car’s Odometer Reading
The number of times a vehicle is used can affect its worth. The higher the mileage is, the more likely it is that the car has depreciated in value. The car’s current mileage is essential to verify the car’s value, as it indicates how much the engine has been used over a period of time. Lenders use these factors to determine the car’s life expectancy; if it’s high, it may seem like the expectancy is low. While the mileage must be low for a high-value rate, a car may still have a qualifying amount of equity with high mileage on the odometer. You could still have enough equity to qualify for a title loan.¹
- The Current Condition of the Car
If you are looking to qualify for a car title loan, you will need to use your car as collateral for the loan. The condition of your car can add a lot of value to it. If it has been well maintained, there is a greater chance that the vehicle is worth more.¹ The condition of a vehicle refers to any damage made to the internal/exterior surface of the car. Things to look out for include a clean engine compartment and no mechanical malfunctions. The condition of a car also includes how a vehicle was maintained (scheduled maintenance, regular oil changes, etc.).
Before you submit photos of your vehicle to a loan agent, ensure that the car is clear of any visible damage, or keep it to a minimum. Damages can include paint scratches, severe rust, dings to the windshield, or dents.
- Modifications to the Vehicle
A modification or alteration to your car can be nice when you want to upgrade its look or performance. Some modifications can negatively affect your vehicle’s value, however. These modifications include custom stereo systems, alloy wheels, or spoilers. If you make too many modifications, it could also decrease your car’s worth.
But not all vehicle modifications or alterations are bad for a car’s value. If you decide to upgrade the engine or exhaust, it could increase the car’s value!
This information can help you determine the value of your vehicle to see if it qualifies for a title loan.¹ With loan options like ChoiceCash Title Loans serviced by LoanMart, your car could be eligible for a title loan!¹
What Happens When I Use My Car as Collateral for a Loan?
Equity is one of the essential parts of using your vehicle as collateral for an auto title loan. If a car does not have enough positive equity to borrow from, it will not qualify for a title loan.¹ The reason that equity is an essential qualification for a title loan is that it serves as protection for both the borrower and the lender. The lender can use the collateral as reassurance that the loan will be repaid in one way or another. At the same time, the use of collateral can allow for the borrower’s approval process to be flexible despite their financial background.¹
During the title loan inquiry process, you must submit a few pictures of your vehicle to a loan agent to verify its condition. When taking photos of your car, make sure they are from its front, back, and sides. You will also need to take pictures of its odometer reading and Vehicle Identification Number(VIN #). Make sure these pictures are clear enough for a person to see.
If you are worried that you will lose your main source of transportation during the loan repayment process, don’t sweat it! While your car’s title is used as collateral for a loan, it does not mean that you will need to give up your typical driving habits.¹ When you sign your loan contract, a lien is placed on your vehicle’s title, and it will remain there until you have repaid your loan amount in full. As long as you’re on time with your payments, you can still drive your car and keep it with you!¹ Once you complete your payments, your title will be returned to you clear and lien-free!
With a ChoiceCash Title Loan, your car is a vital tool to use as collateral for the money you need! It takes no time to get started on your title loan with a quick and easy approval process! 1
Are There Any Other Requirements Needed to Qualify for an Auto Title Loan Besides Collateral?
You may be wondering if your vehicle can qualify for a title loan. While the use of collateral is essential in the title loan inquiry process, there are two additional requirements you must meet to qualify:
- Must Be Able to Repay the Loan: When you’re planning to get a loan, it’s essential to consider a loan that you can afford. A loan agent will require that you demonstrate your ability to complete monthly payments. You can submit different documents to prove your income: pay stubs, bank statements, proof of pension income, or other forms of alternative income.
- Must Be 18 Years or Older: To qualify for a title loan and sign a loan contract, you must be 18 years of age or older.
In addition to these requirements, remember that you must submit your vehicle’s title during the inquiry process. The vehicle itself must have a qualifying amount of equity as well!
Are There Any Documents Needed to Qualify for a Car Title Loan Besides a Car Title?
Although a car title is an essential document for obtaining a title loan, you will be asked to submit a few documents to verify your information and vehicle ownership. With loan options like ChoiceCash Title Loans serviced by LoanMart, you can take advantage of the convenience of submitting your paperwork online. You can skip the hassle of handing over your documents in person!
You may already know some of the required documents, but it would be good to know some additional information about them. Before you can use your car as collateral for a loan, you will need to submit these documents to a loan agent:
- Your Car’s Title: When inquiring about a title loan, make sure the title is in your name. This proves the ownership of the vehicle. If the title is not in your name or you have it missing, do not worry! A loan agent can show you how to request a transfer.
- Proof of Income: Proof of your ability to repay your loan is crucial during the inquiry process! As long as you can afford to meet your payments, you don’t need to be actively employed to qualify for a car title loan.¹ Some of the documents you can use to verify your income could be: SSI income award letters, bank statements, pay stubs, proof of pension income, a letter of employment from your employer, or a few other forms of alternative income.
- Proof of Identification: Typically, you can validate your identity by showing government-issued photo identification. You can use documents like your driver’s license, passport, or even a military ID to verify your identity.
- Proof of Address: Title loans are not available in every state, so you will need proof that you live in the state you are applying from. This can be done through: recent utility bills or credit card statements, lease/rental agreements, recent phone bills, etc.
- References: You may be asked to provide personal or professional references.
You can always scan these documents and send them in online. Or, take pictures of them and send them in through text/email. Once these are sent, you can find out if you’re approved for a title loan in no time at all!1
Do I Need to Go Through a Vehicle Inspection When I Use My Car as Collateral for a Loan?
When you use your car as collateral for an auto title loan, you will be required to go through a vehicle inspection as part of the approval process. Some title loan providers expect you to bring your vehicle to a physical location for an inspection. It can take time to verify your car and your information when this happens, which is very inconvenient when you need fast cash!
With ChoiceCash Title Loans serviced by LoanMart, you could do everything from the comfort of your home!¹ All you need to do is answer a few simple questions and take some clear pictures of your car. It’s essential to take photos of the following:
- The Front View of the Vehicle
- The Back View of the Vehicle
- The Driver/Passenger-Side of the Vehicle
- The Odometer Reading on of the Vehicle
- The Vehicle Identification Number (VIN #)
Once you have them ready to go, you can always send them through email or text.
With loan options like ChoiceCash Title Loans, you can do everything with just a click of a button.¹
How to Get a Loan By Using Your Car as Collateral for a Loan
Are you ready to use your car as collateral for a loan? Get started on the approval process today by following these three simple steps¹:
- Click or Call
You can inquire about a title loan online by filling out a short form. Or, give a loan agent a call at 855-277-4847. Loan agents are available six days a week to help you with any questions you may have.
- Submit Your Documents
Skip the hassle and submit the required documents online. A loan agent will verify your information in no time!1
- Get Your Money¹
Once you’re approved for a title loan and sign the paperwork, you can receive your money through a direct deposit to your bank account.1 Or, you can receive a mailed check. You can pick up your money at any participating money transfer location near you.
With ChoiceCash Title Loans serviced by LoanMart, approved borrowers can receive fast cash through a convenient and flexible online inquiry process.1