Applying for Title Loans Can Be Quick and Straightforward
There is nothing worse than needing money and not having any. If you miss bill payments, your credit score can be negatively impacted. Applying for traditional bank loans can be challenging if you don’t have an excellent financial history. When an emergency pops up, paying for an unexpected expense can feel impossible.
Asking family or friends for money can be uncomfortable, and not everyone can qualify for unsecured loan options. If you have bad credit, options may seem limited! However, you can apply for a title loan online and may receive access to money within the same business day as starting!
Title loans can be a great choice for people with less-than-perfect credit scores but still need financial assistance. This loan option can affect your credit score only if you miss payments.
Learn how title loans work with credit and how you can potentially qualify! Start your title loan inquiry today by filling out this pre-approval form or calling to speak with a title loan representative from LoanMart.
How Do Title Loans Work?
Title loans work by using the available equity in a vehicle in exchange for funding. The car title is collateral if the money isn’t paid back. Lenders will place a lien on your vehicle title if you obtain approval and remove it after repayment.
This option is a secured loan because there is a physical asset on the line if the money is not repaid! Traditional bank loans do not rely on collateral. Instead, they look at a person’s credit history when determining approval. If your score is too low, they can deny you funding or approve you with high-interest rates and hidden fees.
With a title loan, lenders will run a credit check, but they care more about how much equity is in your vehicle and if you have consistent income. Positive equity means your car’s overall value is worth more than what you owe in payments. Equity is crucial for a title loan because your approval and possible loan amount can depend on this number.
You also need to show proof of consistent income. This requirement doesn’t mean you must work a traditional 9-5 job– many alternative income sources may be accepted during approval! Providing income proof is a federal law to protect borrowers from predatory lending practices. If you can’t show that you have steady money each month, you may not qualify for a title loan.
Will A Title Loan impact my Credit Score?
A title loan can affect your credit score, but it depends on several factors. Any unpaid pill can negatively impact your financial history, and it can take years to pull yourself out of debt. If you default on your title loan, lenders can send that information to the major credit bureaus, potentially lowering your score.
The most significant risk of taking out a title loan is car repossession. Lenders can legally take your vehicle if you fail to make your monthly payments. This result is typically the last resort that any lender wants to take. While it may sound harsh, this is common for most secured loan options. The bank can foreclose on your home if you stop making mortgage payments.
If you’re struggling with your title loan payments, contact the lender immediately to explain your circumstances. They may be able to help you draw up alternative terms, and refinancing your loan could be an option.
How Can I Apply for an Online Title Loan?
There are requirements involved with an online title loan, but they are relatively easy to meet. If you are 18 years or older, have a qualifying vehicle title in your name, have some positive equity in your car, and can provide proof of consistent income, applying for a title loan can be quick.
Below are the steps involved with inquiring about an online auto title loan:
- Submit an Inquiry Form Online or Call to Speak With a Title Loan Agent
- Submit Documents via Email or Fax
- Await Approval and Receive Your Funds
The documents required for a title loan are things most people have on hand, which makes title loans an accessible option for many people. Qualified borrowers have several options for receiving their cash. They can have the money directly deposited into their bank accounts, receive a check in the mail, or visit a participating money transfer location in the area.
At some point in everyone’s lives, they will need money and perhaps not have access to any. If you’re struggling with a low credit score, applying for an online title loan could help you. Title loans can affect your credit score, but only if you miss your monthly payments and default on loans.
Start your title loan inquiry today by filling out this pre-approval form or calling to speak directly with a title loan agent.