Were you aware that you can utilize your personal vehicle to get a loan? It is actually incredibly easy to do so. It is an excellent option for individuals who might not have a credit score high enough to impress their local banks. But do you need car insurance to get a title loan?
These kinds of loans are called car title loans. We can fill you in on all that you need to know about them! This includes what is needed to be approved. Since they use your vehicle, you might be wondering how exactly it works.
Max Cash Title Loans believes in making sure you have all the information possible before making a decision. That way, you can make the right choice for your unique situation. We work hard to connect you to the best lenders and the most competitive deals in the industry. But, we also place an emphasis on education and financial literacy. We wish to see all of our customers succeed in all their financial endeavors!
How Do Title Loans Work and Do I Need Car Insurance to Get a Title Loan?
To the average reader, it might seem like a complicated process to use a vehicle for a personal loan. But, it is actually surprisingly straightforward. A car title loan functions like many other installment loans except it is secured through the equity of your vehicle. Using the value of your car as collateral allows for more flexibility in who can qualify.
When a loan is secured, the applicant’s credit score is not as vital to the approval process. Even though the lender usually checks your credit score to be sure you are not in active bankruptcy or credit counseling, you can still qualify for a title loan regardless of a poor credit score or a past bankruptcy.5
Title Loan Process
- Loan Approval
After going through the loan qualification process, you will be notified if you are approved for a title loan and for how much.5 Once you have signed your contract, the lender will place a lien on your title. This secures the money you borrowed. While the lender holds onto your car’s title throughout the life of your loan, you will get to drive off with your car like normal.
- Monthly Installment Payments
Your loan agreement will have pre-determined monthly payments that you will pay until the balance is fully repaid. You get to continue driving your car as you usually would without interruption as long as you keep making those minimum payments on time!
- Get Your Title Back
When you have paid off the title loan in its entirety, the lender will remove the lien that they placed on your title and return the document to you completely free and clear.
Will I Need Car Insurance to Get a Title Loan?
Do you need car insurance to get a title loan? While it is not always necessarily required by all lenders that you have car insurance at the time of applying for your title loan, it is definitely advised and strongly encouraged. Most if not all lenders will require car insurance for a title loan.
Since your car is used as collateral to secure the loan, something happening to your car could put the money you owe the title loan lender at risk. Therefore, you need to make sure that your car is insured to make sure that your loan is protected as well.
What Kind of Car Insurance Should I Get?
We suggest getting as much coverage as you can when it comes to car insurance so that you are prepared for anything that might come your way throughout the duration of your loan.
It would be a good idea to get comprehensive coverage and collision insurance so that any damage or loss would be taken care of by the insurance company and not affect your title loan whatsoever.
How to Apply When You Need Car Insurance to Get a Title Loan
One of the best aspects of car title loans is how easy it is to see if you qualify for one, especially when you get the help of Max Cash Title Loans and their nationwide title loan marketplace. The qualification process can be broken into three simple steps:
Step One: Online Inquiry Form
First, fill out the online inquiry form located on the homepage of our website with some basic facts about yourself like: your full name, your address, an approximation of your income, and the make/model/year/mileage of your vehicle.
Step Two: Send Documents
Next, you will be required to provide some documents crucial to approval and the subsequent drafting of the loan agreement: a government-issued identification, your vehicle’s title, proof of income, proof of residence, some pictures of your car, and perhaps a few personal or professional references.
Step Three: See If You Qualify!
After sending in all the necessary documents, you will hear back from a title loan agent about whether you will qualify for a car title loan and how much you could be eligible to receive. If you wish to proceed with the loan, then you can review your contract and sign it before receiving your funding!
Max Cash Title Loans is Here for You
Max Cash Title Loans offers you a nationwide title loan marketplace that puts the power back in your hands. That way, you know you are getting the best deals available.4 We want to equip you with tools to help you succeed in all financial aspects of your life! You can even apply for car insurance with our partner, Optimum Saver.
Some of the benefits you can expect to find when working with Max Cash Title Loans:
- Longer terms to make your payments more affordable. 4
- Kind and helpful customer service is available seven days a week!
- A convenient online qualification process.
- Funding as fast as the very next business day! 5
- Industry-wide competitive rates!4
If you are interested to see whether you qualify, get started today by filling out our easy online form!