How to Get a Title Loan
If you need money right away, one option that doesn’t require you to go through a credit check is a title loan. You may complete the entire application process and get your money in less than an hour. Getting a title loan takes just a few simple steps.
Make Sure You Meet the Conditions
The loan requirements for a title loan aren’t very strict and approval rates are high, just keep in mind that title loan regulations vary from state to state. The regulations in your state can affect the application requirements, and not every state allows title loans. If you’re in a state where title loans are illegal, you can get a title loan in another state where it is legal.
In states where title loans are legal, there are typically three items lenders will need to see – your car, your car title and your government-issued ID. The current market value of your car determines how much lenders will loan you. During the term of the loan, the lender will keep your car title, which you will get back once you’ve repaid the loan. The car title must be lien-free and in your name. Federal law requires title loan borrowers to be 18 or older. The lender will check your date of birth on your ID to confirm your age.
In some states, lenders must also check the income of title loan borrowers to verify that they will be able to repay their loans. If you live in a state with this requirement, you’ll need paystubs, bank statements or another form of income verification.
Applying for the Loan
You can visit a title loan company in your area to apply for a loan, or start the process by getting a title loan quote online, either through a lender or a company that has a network of lenders. Even if you apply online, you will need to visit a lender’s office to complete the loan application, because they need to inspect your car and get your car title from you.
When you visit a lender, they will check your ID and have you complete some paperwork. They will also check out your car, and then once you provide your car title, they will issue your loan.
The lender will tell you the payment due date for your loan before you leave. Most title loans have terms of 30 days, unless you get your loan in a state with a longer minimum term length. You must pay your title loan back on the due date or extend it, which is also known as rolling over the loan. To do this, you pay the loan interest and start a new term with the unpaid loan principal and another interest charge.
Understanding Your Title Loan Terms
It’s crucial that you fully understand the terms of your title loan, including the interest rate and how much your payment will be, before you complete the application. While it’s much easier to pay just your interest and roll over your loan, this is unwise, because you can end up paying far more in interest than you originally borrowed. Title loans are intended to be short-term loans, so aim to pay yours off in full by the due date.