Title Loan Requirements Can Be Simple
Do you need help paying for a sudden expense or bill? If you’re struggling with your finances, you’re not alone. Many Americans do not have the money to save up more than $1000 in their bank accounts, mainly due to the recent inflation rise. If the cost of living increases dramatically, but you make the same amount, paying your bills can be challenging.
Not sure how to qualify for a car title loan? Qualifying for a car title loan can be simple, even if you have a poor credit history. The initial requirements are straightforward and can be accessible to people from all walks of life! Don’t let the frustration of not having money get to you– inquiring about car title loans could be the answer you’re looking for!
Learn more about how you can qualify for a car title loan, and start today by filling out this pre-approval form or calling to speak with a title loan representative.
What Are the Main Requirements for a Car Title Loan?
The requirements for a car title loan are not complicated, but understanding them can help you get approved. Traditional bank loans rely on strict criteria during their inquiry process, like evaluating a person’s credit history before deciding on eligibility. If you have poor credit, this can indicate that you are financially irresponsible and not likely to pay the money back.
With a title loan, approval isn’t solely focused on credit scores. While lenders will run a credit check, they care more about how much equity is in your vehicle and if you have a steady income to repay the loan.
Auto title loans generally have the following requirements:
- Be an Adult at Least 18 Years of Age or Older
- Have a Qualifying Vehicle Title in Your Name
- Have a Qualifying Vehicle With Some Positive Equity
- Show Proof of Consistent Income
You can’t apply for a title loan if you are a minor. Any financial agreement is a big responsibility; therefore, you should be old enough to make the best decisions!
You must have a qualifying vehicle title to apply for this option. Unfortunately, you cannot inquire about car title loans unless you prove you are the legal owner. If you need help replacing a lost title or transferring titles, contact the DMV in your state for assistance!
A vehicle with positive equity is essential because lenders look at this when determining your eligibility and loan amount. Car equity is the difference between what your car is worth and how much you owe in payments. If you don’t know how much your vehicle is worth, you can use websites like Kelley Blue Book to receive an estimation.
Finally, consistent income proof shows lenders that you can repay the loan. This requirement is a federal law to protect borrowers from predatory lending practices! If you don’t have a steady income, you may be unable to repay the money and therefore enter the debt cycle.
What Are the Risks Associated With a Car Title Loan?
Any financial agreement will come with its own set of risks. As an interested borrower, you must educate yourself about them before deciding to take on the responsibility. If qualified borrowers fail to pay their loans back, they risk defaulting on the loan and having their vehicle repossessed by the lender.
This option is typically the last resort any lender wants to take. If you are struggling with your payments, the best thing you can do is contact the lender and explain your circumstances immediately. They may help you come up with different terms to complete the process.
The idea of losing access to your vehicle is scary, but the result happens from time to time with collateral-based loans. If you stop paying rent, landlords can evict you. The best way to avoid car repossession during a title loan is to make your monthly payments on time!
You can set up an automatic withdrawal from your bank account to ensure you never forget about paying the loan back. This option is a good idea for all future bills in your life!
Inquire About Car Title Loans Online Today!
Ready to learn how to qualify for a car title loan? Compared with traditional bank loans, qualifying for a car title loan can be much easier. The requirements can be straightforward, and the inquiry process can be convenient. If you obtain approval, you may receive access to funding within the same business day as starting! This option can be excellent for people who need money quickly but also have a bad credit history.
Start your inquiry today by filling out the pre-approval form or calling to speak with a title loan agent.