Making ends meet month after month is a challenge for most people. But paying your bills is even more difficult if unexpected expenses arise. Taking an unplanned trip to the doctor, getting into a car accident, or paying for home repairs can put a serious strain on your finances. But there’s no need to panic. If you’re in need of fast cash, car title loans from LoanCenter may be the solution.
How Can I Use My Car as a Collateral for A Loan?
A car title loan is a type of secured loan that allows the borrower to use the title to a vehicle as collateral. Because your car is used as collateral, the amount you are approved to borrow will depend on the value of your vehicle.
What Happens When You Put Your Car Up for Collateral?
Many people think that they will need to hand over the keys to their vehicle in order to get a car title loan, but that’s not the case. You won’t have to sacrifice your car to get the money you need.
If you are approved for a car title loan, you will get to continue using your vehicle while you make payments on your loan. This means taking out a car title loan will not affect your ability to get to work, school, or anywhere else.
The car will remain in your possession unless you stop making payments on your loan. If this happens, the lender may repossess your vehicle to cover your unpaid debt.
What Will You Need to Apply for A Car Title Loan?
You will need to submit certain documents to apply for a car title loan. Some of the documents you will need to provide include:
- The clear title to your car, motorcycle, or RV (the title must be lien-free and must have your name on it)
- Your driver’s license
- Proof of income (this income may come from a job, retirement benefits, unemployment benefits, workers’ compensation benefits, or any other source)
The submission requirements will vary depending on the state you reside in. Your lender may ask for additional documents such as proof of residency, your vehicle registration, and proof of insurance.
Can You Get A Car Title Loan with Bad Credit?
If you apply for a traditional personal loan, the lender will review your credit history, financial record, and income to determine how risky it is to let you borrow money. Borrowers with low credit scores may not be approved for traditional personal loans.
But a car title loan isn’t like a traditional personal loan. Your car title loan is secured by collateral, which makes the transaction less of a risk for the lender. Because of this, your credit score won’t matter as much to the lender when determining your eligibility.
The bottom line? It is possible to get a car title loan with bad credit, which is why so many consumers who are experiencing financial hardship rely on these loans to make ends meet.
How Much Can I Get on A Car Title Loan?
If you are thinking of applying for a car title loan, you may be wondering whether you will be able to borrow enough to meet your needs. The amount of a car title loan will vary depending on several factors, including:
- Value of your vehicle
- Your equity in the vehicle
- State laws
- Your income
LoanCenter will need to inspect your vehicle before determining how much it is worth. Some of the factors that will be taken into consideration when calculating the value of your vehicle include the make, model, age, mileage, and condition.
State laws can impact the amount of your car title loan, too. Some states have established minimum and maximum loan amounts for car title loans. LoanCenter must comply with these state laws when issuing car title loans.
The final factor that will affect the amount of your loan is your monthly income. LoanCenter will need to see proof of income to verify that you will be able to repay your loan. Your monthly income will be taken into consideration when determining how much you will be able to repay each month.
What Are the Benefits of Car Title Loans?
There are a number of benefits to taking out a car title loan rather than a traditional personal loan. First, the application process couldn’t be easier. You won’t have to spend hours on the phone or wait for weeks to find out if you are approved. The entire car title loan application process can be completed within a day, so you can get the money you need as quickly as possible.
Bad credit won’t stop you from getting approved for a car title loan, which is another benefit that this type of loan offers. LoanCenter works with many borrowers with low credit scores.
Some lenders will charge borrowers additional fees if they decide to pay their loans off early. But LoanCenter will never penalize you for making this financially responsible decision. There are no early payment fees on car title loans. In fact, paying your loan off early could actually save you money since you won’t pay as much interest.
How Can I Apply for A Car Title Loan?
Taking out a car title loan may be the solution to your financial troubles. Fortunately, applying for a car title loan has never been easier. In fact, you can even begin the process of applying for a car title loan online. Follow these simple steps to get the cash you need:
- Fill out the form on the LoanCenter website.
- Discuss your application with a loan officer from LoanCenter.
- Finalize your paperwork with the loan officer.
- Get approved!
That’s all it takes to use your car as collateral in order to obtain the cash you need as quickly as possible.
Loan approval is subject to meeting the lender’s credit criteria, which include demonstration of ability to repay the loan. Not all applications will be approved.