Can I Use My Car as Collateral for a Title Loan?
Yes, you can use your car as collateral for a title loan. In fact, that is the whole premise of a title loan. A title loan is a type of secured loan. A qualified applicant will be able to use the title of their vehicle as collateral to secure the loan. But, what happens when you use your car as collateral for a title loan?
The lender will hold onto the title until the loan is repaid in full, at which point the title will be returned to the borrower. To obtain a title loan, you will need to provide the lender with the title of your vehicle, proof of income, and other required documentation. The amount of the loan will depend on the value of your vehicle, and you will typically have to pay back the loan plus interest and fees within a specified period of time. In some cases, you can repay a title loan in installments.
Here’s the most important part of using your car as collateral for a title loan – if you default on the loan, the lender has the right to repossess your vehicle and sell it to recoup their losses. Therefore, it’s essential to carefully consider the terms and conditions of the loan before taking out a title loan and make sure you have a plan in place to repay the loan on time.
Do I Need a Paid Off Car to Get a Car Title Loan?
The answer is no, not necessarily. But in most cases, you will need to have a paid-off car to get a title loan. This means that you own the vehicle outright, without any outstanding loans or liens against it. The reason for this is that the lender needs to have clear ownership of the vehicle to use it as collateral for the loan.
However, some lenders may offer title loans to borrowers who still have outstanding loans or liens against their vehicles. In this case, the lender may be able to provide a loan for the amount of equity you have in the car, which is the value of the vehicle minus the outstanding loan balance.
Find out if this scenario is a possibility for you by calling Max Cash® Title Loans at 855-561-5626 today! It is possible to get a title loan on a financed car.
It’s important to note that if you do have an outstanding loan or lien against your vehicle, you may need to pay it off before you can use the car as collateral for a title loan. Additionally, in some cases, the lender may require you to provide documentation to prove that you have clear ownership of the vehicle before they approve the loan. You may be required to sign a payoff authorization form in order for your new title lender to pay off your auto loan lender.
Do I Need Good Credit to Get a Secured Loan?
In most cases, you do not need good credit to get a collateral loan, such as a title loan or a title pawn loan. This is because these types of loans are secured by collateral, which means that the lender has the right to seize and sell the collateral if you fail to repay the loan. So, if you want to use your car as collateral for a title loan, you can – even if your credit score isn’t perfect!
Unlike unsecured loans, such as personal loans and credit cards, which are based primarily on your credit score and credit history, collateral loans are based primarily on the value of your asset. Therefore, the more value in your collateral, the more you can potentially obtain through a title loan.1 5
This also means that even if you have poor credit, you may still be able to get a collateral loan if you have valuable collateral to offer.
Will a Title Lender Check My Credit History?
However, some lenders may still check your credit history as part of the loan application process. This is because they want to assess your overall financial situation and determine whether you have a history of repaying loans on time. Additionally, some lenders may charge higher interest rates or require more stringent repayment terms if you have poor credit.
That’s where Max Cash Title Loans steps in. We work with a network of title lenders that can offer competitive rates! 4 So qualified borrowers could obtain competitive interest rates that won’t lighten their wallets.
Overall, while good credit can make it easier to obtain a loan and may help you qualify for more favorable terms, it is not always necessary for a collateral loan. The key is to have valuable collateral and a solid plan to repay the loan on time.
How Much Can I Get if I Use My Vehicle as Collateral for a Car Title Loan?
The total amount you could be eligible for if you use your vehicle as collateral for car title loans depends on several factors:
- Including the Value of Your Vehicle,
- The Total Amount of Positive Equity You Have in the Car,
- And the Lender’s Policies.
Typically, title loan lenders will offer loans that are a percentage of the value of your vehicle, often ranging from 25% to 50% of the car’s value. For example, if your car is worth $15,000, a title lender may offer you a loan of $3,750 to $7,500, depending on their policies and the amount of equity you have in the car.1
Use Your Car as Collateral for a Loan Today with Max Cash Title Loans
You can use your car title as collateral for emergency cash if you need a little bit extra to get back on your feet! If you’re ready to apply for a title loan, you can conveniently do so with Max Cash Title Loans online or over the phone.
Call a title loan officer at 855-561-5626 to learn more about the application process today to use your vehicle as collateral for emergency funding.1
All you will need to do is fill out a short application form, submit a few documents to verify your information, and then bam! You’ll find out if you are eligible for a title loan in no time.2 5