A title loan is a short-term financing option where lenders allow borrowers to use their vehicles as collateral. Unlike pawn shops, you get to take your car home with you and leave the lender with the car title. Here is everything you need to know about car title loans:
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Loan Application Requirements
The process of applying for a car loan is easy. Once you provide all the documents the lender needs, they help you complete the application and process your loan. Here are some requirements for most lenders:
Car Title
How a title loan works is that lenders hold your car title as collateral until you pay off the loan. Before holding the title, lenders must verify that you are the car’s sole registered owner. Besides the car title, you should provide a government-issued identification matching the name on the title. The loan company may also ask for car details like the make, model, and mileage driven.
Identification Information
The legal age requirement for borrowers to enter into a contract with lenders is 18 years. Lenders need your ID card to verify that you are over 18. Most lenders also ask for details like your phone number, email address, and mailing address to make it easier for them to reach you for any information about your loan.
Proof of Vehicle Insurance
Lenders need proof of insurance to reduce their risk in case your car gets damaged in an accident before you repay the loan. This way, they can be sure your vehicle is protected so they can get their money back.
Vehicle Inspection
The loan company may require a physical inspection of your vehicle to determine whether it is worth the amount you want to borrow. The inspection involves assessing your vehicle’s condition to determine its current market value. Most companies allow you to borrow against your car, truck, or motorcycle.
How to Apply for a Title Loan Without a Bank Account
Title lenders do not care whether or not you have a bank account as long as you can provide collateral for the loan. You can get a title loan without a bank account as long as your vehicle’s value is enough to cover the loan. It also helps to provide proof of your ability to pay off the loan.
How Much Can You Borrow Using Your Car Title?
The amount of money you can borrow using your car title depends on its market value. Most loan companies can let you borrow anywhere between 25 to 50% of the car’s value. If your car’s value can match up, lenders may let you borrow a more significant amount than the figure mentioned above.
Get a Quick Car Loan Today
A title loan can be a lifeline in a financial emergency. Knowing what to expect when borrowing from a title lender can help you speed up the loan application process, giving you quick access to the needed funds. If you meet the lender’s requirements, they can process your loan in a few days. Content your locale title lender for more details on their loan offers and conditions.