Title loans can also be called car title loans, secured loans, or collateral loans. They are usually a loan product with a small borrowing amount and short repayment period. The unique feature with this loan is that it uses the title of a vehicle as the loan collateral.
Loan collateral is whatever the loan product uses to back up or secure the loan. It's an insurance that helps mitigate the risks the lender takes on when letting customers borrow money.
In this case, the loan collateral is the title of your vehicle, most often a car, and the value behind that personal asset.
What are the Title Loan Requirements?
As with any financial product, there are a few things you'll need to meet application requirements and secure the funds you need. Some things you might need to qualify for this type of loan include:
- The vehicle
- The vehicle's title
- The vehicle's registration
- Personal identification like a driver's license
- Proof of income or proof of employment
These are some basics you will probably need to secure a title loan. But there may be other things you'll need to bring or have ready depending on the lender you choose.
Always double check with the loan provider by visiting the website or calling the store location to make sure you have everything you need to finish the application.
Vehicle, Title, Registration
The most important thing you'll need is the vehicle and the title and registration to that vehicle.
The lender will need to make sure all the vehicle's documents are correct, give the vehicle a quick inspection to assess its value, make sure you are the owner, and see that there are no other liens on the title. They call this a "clear title."
A clear title is a vehicle title that has no other liens on it, or no other loans on the vehicle. It means you aren't currently using that vehicle for any other title loans, and you own the vehicle outright.
You'll need a clear title in order to use that vehicle for a loan application.
Lenders rarely like to let borrowers take out multiple loans on one car. The more liens you have on a vehicle, the riskier your loans become. That's why lenders want the title of your vehicle to be clear of other liens before you can take out a title loan on that car.
Personal Identification
Typical personal identification for loans includes things like your passport, driver's license, or any other form of official, government-issued identification.
This will give lenders basic information about your identity so that they can recognize you and contact you. It will also help them make sure you are who you say you are and match your identification with the owner of the vehicle.
Along with a form of personal identification, you'll probably also need to provide some basic personal contact information. This could include things like your phone number, address, and email.
Proof of Income
Many lenders require proof of income or proof of employment in order for customers to secure a loan. This helps the lender know whether the customer can pay back the loan.
Responsible lenders don't want to set their customers up for failure. Instead, they want their customers to be set up for financial success. This is easier when income and employment can be verified before a loan is given out.
How Do Title Loans Work
Like many small, short-term loans, the title loan process is very simple and quick. First, find a title loan provider near you, like Check City.
Once at the store, the friendly representatives will perform a quick inspection and help you complete a quick title loan application.
When the application and inspection are complete, you'll be offered a loan amount based on the value of your car.
Then you can accept your funds and drive away with the cash you need all in the same day.
How Much Can I Borrow on a Title Loan?
Lender's usually base the loan amount you can borrow on the value of your vehicle. Different lenders use different systems to determine this value.
To get a rough estimate of how much you might be able to borrow, look up your vehicle's worth on sites like Kelley Blue Book, or the NADA Guide.
You can also contact your loan provider to see which guide they use when determining your car's value for a title loan. They might also have a percentage of your vehicle's value that they generally offer for title loans.
How to Get a Title Loan at Check City
At Check City, we make money solutions like title loans, easy and simple. We understand that when you need a money solution you need it fast.
That's why we keep our application process as simple as possible so you can get the funds you need as quickly as possible.
All you need to do to get a title loan at Check City is follow 3 easy steps:
Step 1: Bring the Required Items to a Nearby Check City Store
To finish a title loan application at Check City, you'll need to visit a store location. You'll want to bring your basic contact information, government ID, social security number, check or bank statement, proof of income, vehicle, title, and registration.
Once you are at the store with all the things you need, you can easily fill out one of our quick application forms.
Step 2: We'll Perform a Quick Vehicle Inspection
Check City will perform a quick vehicle inspection and finish processing your application. This inspection will help determine how much you can get out of your title loan.
Step 3: Get Approved and Get Cash
If you are approved, then you'll be offered a loan amount based on a percentage of your vehicle's value. At Check City, you then get to keep your car and drive away with the money you needed.
Alternatives to a Title Loan
Title Loans can be a great financial solution for people who want to use their car as loan collateral and need a fast, small, short-term loan.
But title loans aren't for everyone. You might not own your car outright, or your car's value might not be enough to get you the funds you need.
For other loan options, you can look into getting a payday loan, a personal loan, or an installment loan.
These are loan options that use more traditional forms of collateral to secure a loan, so you don't have to worry about including your vehicle in the loan application process.
In Conclusion,
Title loans can be a quick and convenient loan option for anyone who needs a small, short-term loan. Just remember that your car's title will need to be free and clear of any other liens, and that short-term loans like title loans are not meant to be a long-term financial solution.
