How Can I Get A Loan Against My Old Vehicle?

People these days often face unexpected financial freight, such as car repairs, expensive medical bills or housing expenses. These situations can leave you with the need for instant cash, but getting a loan from the bank is not always easy. You often require good credit or a certain amount of income when you think of taking help from a bank.

Car title loans are meant for the types of situations mentioned above. You can get the fast cash you need by using your old car as collateral. Your vehicle’s equity is used to determine if you qualify, as well as the amount you can borrow. These types of loans have a less strict process, are less stressful and are much quicker. Such loans can be acquired online and be approved in as few hours as possible.

1. Qualifying for a car title loan against your vehicle may be easier than you think.

The requirements for loan against your vehicle are often minimal in comparison to traditional loans. Less paperwork and personal information are needed. The most crucial factor in qualifying for a car title loan is that you must own the car that can be used as collateral. Because this type of loan is based on the equity of your vehicle, you can hold your vehicle outright. Other essential requirements to apply for such loans include you must reside within the state and be at least 18 years old.

2. Poor credit? No Problem!

Unlike other types of traditional loans, your bad credit doesn’t affect your car title loan application. These loans usually don’t require a credit check. They are designed especially for people that have damaged credit from a history of late payments on their record.

3. Your low income cannot stop you from qualifying

Your low income cannot exempt you from qualifying for a loan.

4. Your car is used as collateral for the loan.

If you decide to get a car title loan, you must put your car as collateral. This means that the lender has the right to place a lien on your car title.  In the meanwhile, you have to surrender the hard copy of your vehicle title, in exchange for the amount. This is the only way a lender has a full assurance that the loan they lend you will give them some return. Without the title of the car, it can be tough to find a short-term loan.

5. You receive a significant amount of cash for your needs.

The main factor which determines the loan amount is the value of your car. The company determines the cost quickly by evaluating the condition of your vehicle depending on its age, make and model.

6. You can keep driving your car.

When getting a car title loan, you are not selling your car or giving your vehicle away to the lender. You can still continue driving your car throughout the length of the loan, as long as you make payments on time. You don’t have to worry about getting around to work when you take out a car title loan.

7. If you are not able to pay your loan back on time, don’t panic!

If you are unable to pay off the loan, then you can lose the car title to the lender. If you think you can’t settle on time, try to negotiate with your lender. So it is better to have a good idea and plan on how to pay back the money you borrow before applying for a car title loan. 

8. You can get your car title back. 

After paying off the balance of your title loan, the lender will remove the lien that was placed on your vehicle, and you can have your title back.

How to Get a Car Title Loan?

1. You can call or apply online: You can apply online or call for loan approval. The online application process will take about 15 minutes to complete. Once you submit the application, you will receive a follow-up call to confirm if you have been approved.

2. Easy Documentation Process: You have to submit a few documents after you complete the online application form. These documents can include- 

i) A copy of your driver’s license, 

ii) Registration and insurance of your vehicle, 

iii) Second set of keys to your car

iv) a valid government-issued ID)  

v) a clear title to your car.

3. Get Your Money Today: The process of getting cash for your old vehicle couldn’t be more straightforward. Once the documents are verified, and the car is inspected, you can expect a final approval within a short amount of time.

So, if you are in need of urgent cash but don’t meet the eligibility criteria for a used car, then you can opt for a loan against your old vehicle which acts as collateral.