Are you interested in getting a car title loan? What do you need to get a title loan? Here’s your guide to the requirements and how it works.
Life can throw you some unexpected curveballs, and some of those can be costly. Whether it’s an emergency medical bill or other unexpected expense, it could leave you strapped for cash. Luckily, you have the option to get a title loan. What do you need to get a title loan? Keep reading to find out!
What Do You Need to Get a Title Loan?
The first step to obtaining a car title loan is to gather the necessary documents. Here are some of the things you will need:
- Vehicle Title
- A valid government-issued ID
- Proof of income and residency
- Proof of insurance
- Valid Vehicle Registration
Some car title loan lenders will require a GPS to be attached to the car. So, if you default on the loan, the lender can disable or repossess the car.
You don’t need to have good credit for a title loan. Some lenders won’t even perform a credit check. Additionally, you don’t have to be employed either to qualify for a car title loan.
Also, you will need to own your vehicle without liens. This means you can’t already have a loan on the vehicle. If you’re still making payments on your car, you have a lien. If you recently paid it off, the lien should be released. If you’re not sure whether a lien was released or not, contact the financer.
How Does the Process Work?
Once you’ve gathered the necessary documents, it’s time to take out a title loan. The process is similar to going to a pawn shop. You will go to the lender, give them your car title, and show them your ID. The approval process usually takes 30 minutes or less.
After you’ve been approved, you can continue to drive your car during repayment. Oftentimes you can repay the entire amount early without being charged a prepayment fee. Be sure to ask the lender about fees and penalties.
Does the Type of Car Matter?
The amount of the loan depends on the type of car you have. Most lenders will let you borrow up to 50 percent of the car’s market value. If you’re unsure of your car’s value, check Kelley Blue Book. To take out a title loan, your car should be worth at least $5,000.
In addition, most lenders will have a milage cutoff. Typically cars with over 100,000 to 200,000 miles. Check with your lender to see if your car qualifies for a title loan.
The reason for the vehicle restrictions is because the car needs to have enough value. The older the car and the more miles it has, the less it will be worth and the less you can borrow.
Applying for a Title Loan is Easy
Hopefully, this guide on what do you need to get a title loan was helpful. As you can see, the process is hassle-free. Don’t hesitate to take out a title loan if you find yourself in a financial bind.
For more guides like this one, follow our blog!