One of the ways to get the most out of an asset is to turn it into cash! A car title loan can be the easiest way to use your asset to get fast cash in as little as 24 hours.1
With a title loan, a borrower will secure cash by using their vehicle’s title as collateral for the loan. If you own a vehicle or have a close-to-paid-off car, you may be able to use it for a quick financial situation. But what happens when you use your car as collateral for a title loan?
Check out how your car will be affected once it qualifies for a car title loan!
How Do Title Loans Work?
Title loans are a unique type of secured loan that will let you borrow off the equity in your car. They can offer qualified borrowers a streamlined process with when times are tough, and cash is short!
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There are two main types of loans:
Unsecured loans do not use collateral in the application process, so the borrower’s credit history is the focus for approval. With secured loans like a title loan, the borrower’s credit will be considered, but it is not the focus. Instead, the car title loan will be secured based on:
- The Value of Your Car
- Your Income and Ability to Repay the Loan
Your eligibility for a title loan and your loan amount will depend on these factors as well. The more equity your vehicle has, the more you may be able to borrow if your income supports it. A vehicle’s equity is calculated by the market value of the car as well as the mileage and condition. For most cars, the make, year, model, and style will also contribute to the equity.
With loan options like ChoiceCash Title Loans, all different kinds of motor vehicles could qualify for a car title loan without a hassle!1 Trucks, motorcycles, and cars can qualify for cash often and with ease.1
What Happens to My Vehicle when I Use My Car as Collateral for a Car Title Loan?
A loan that requires an asset as collateral is a secured loan. When you use your car as collateral for a car title loan, you can access the equity it has and turn it into the cash you need.
Title loans are one of the most common types of loans that allows a borrower to use collateral instead of their credit history to secure cash.
Title loans are often popular among borrowers that are facing a financial difficulty and may not qualify for an unsecured loan option. Collateral helps offset the risk to lend to a borrower without a strong credit history and makes the approval process much more flexible.
For a title loan, a borrower will agree to have a lender place a lien on their vehicle that is being used as collateral for the loan. This lien is the lender’s legal right to the asset if the borrower stops paying their loan. If you keep your loan account in good standing, however, you can keep driving your car like it is business as usual! The lien will only stay on your vehicle’s title for the duration of the loan term. Once the loan is paid in full, the vehicle is no longer collateral, and the title is returned to the borrower lien-free.
With ChoiceCash Title Loans, qualified borrowers can take advantage of a fast approval process and get their cash in as little as 24 hours.1
How Much Can I Borrow When I Use my Car as Collateral for a Car Title Loan?
The amount of funds you can borrow when you use your car as collateral for a car title loan will depend on a few factors. The largest factor is the available equity in your vehicle. Typically, a title loan may allow a borrower to access anywhere from 25%-75% of their vehicle’s value.
Most borrowers do not know the equity of their vehicle offhand, as there are a few different factors that contribute to how it is calculated. With ChoiceCash Title Loan’s online calculator, these factors will help a loan agent identify the equity in your vehicle and offer a loan amount based on it:
- Make, Model, and Style of the Car
- Year the Vehicle was Made
- Market Price for the Vehicle
- Condition and Mileage
- Any Modifications to the Car
To use the online calculator, all an applicant will need to do is submit a few details about their car and get a loan estimate ASAP!
What is the Inquiry Process to Use My Car as Collateral for a Car Title Loan?
While many traditional loan options can seem like a hassle to apply for, a title loan is a new experience with much more convenience. ChoiceCash Title Loans has streamlined the inquiry process for borrowers like you in a financial emergency!1 Don’t wait to find out if you qualify for the cash you need.1
Take advantage of the fast, three-step approval process to use your car as collateral for a car title loan:
- Submit an Inquiry: Borrowers can choose to submit an inquiry online, or over the phone-both options are fast! Simply answer a few questions about your car and income to see if you are prequalified for cash.1
- Send in a Few Documents: Once your information is prequalified, a loan agent will reach out and ask for a few documents to verify your information. These documents you likely have laying around, and you’ll be able to submit them via email or fax for your convenience.
- Find Out if You Qualify for Fast Cash: After your documents have been submitted, an agent can verify your information and help you set up your loan! Qualified borrowers can get their cash in as little as one business day through ChoiceCash Title Loans.1
How Can I Get Started on a Car Title Loan Today?
If you’re ready to make the most out of your asset and use your car as collateral for a car title loan, it’s easier than you think to get started!
Simply head on over to the website to fill out a short inquiry form. For a more personalized loan experience, give one of the ChoiceCash Title Loan agents a call at 855-277-4847. It can take no time at all to find out if your vehicle will qualify for cash!1