Understanding Title Loans 

Title loans can include various types where a clear certificate of title is used as collateral. This type of loan helps provide a choice for individuals who need immediate cash. Here is everything you ought to know about a title loan:

What is a Title Loan?

The lender assesses your car’s worth and offers a loan amount based on a percentage of that value. There is an option where you can continue to use your vehicle while you repay the loan. If you default on your payments, the lender can repossess your car to recover the loan amount.

Unlike traditional loans that take days or weeks to process, auto equity loans can be approved and disbursed within the day.

This makes them an available option for unexpected expenses or financial emergencies. A title loan is secured against your vehicle, meaning lenders don’t need to rely on your credit score to determine your eligibility.

This is a significant advantage for those with bad credit or no credit history. It’s not required for the application process or approval for a loan.

What are the Requirements for a Title Loan?

Auto equity loans can be a convenient option for quick cash. Like any other loan, certain requirements must be met. Here’s all that you need to know about what you need to apply for a title loan:

Age Verification

Age verification is mandatory because you must be at least 18 to enter any legally binding contract. Age verification may be achieved by presenting a government-issued ID such as a driver’s license or passport. The age requirement confirms that the borrower is legally capable of understanding and abiding by the loan agreement terms.

Clear Vehicle Title

A clear vehicle title bearing your name can show you have no outstanding loans or liens against it. The title provides the lenders with security if the borrower defaults. Some lenders may require insurance, depending on the type of vehicle.

Proof of Address

The proof of address can be provided through a recent utility bill, lease agreement, or any official document with your current address. This measure also provides a layer of security for the lender, confirming they have a valid address associated with the borrower.

Proof of Income

Proof of income involves presenting valid pay stubs from your current job, bank statements, or even tax statements. Lenders use this information to assess your ability to repay the loan, assuring them that you have a consistent source of income. Some lenders may offer auto equity loans without income verification, catering to those unemployed or with a low income.

Apply for a Title Loan Today

The application process is relatively straightforward once you have proof of income, a clear title, and are 18 years or older. After submitting your application and documentation, the lender assesses the value of your vehicle. There are various ways to pay the loan, either through cashier’s checks or deposits. Once you have your cash, anywhere from $200 up to $50,000, you’ll be able to keep your vehicle for your convenience.