6 Facts to Know When Considering a Title Loan | Lending Bear

6 Facts to Know When Considering a Title Loan

October 30, 2020
6 Facts to Know When Considering a Title Loan

When you find yourself with unexpected expenses, it can sometimes be difficult to come up with the money you need. You may not have a lot of options when it comes to borrowing money or getting a quick, short-term loan. If you are in a bind, you can use your vehicle as collateral when applying for a short-term loan. This would enable someone to receive quick cash based on the value of their vehicle. Each state and lender could have different rules, so it’s important to do a little research locally if you are interested in a title loan.

6 Facts You Need to Know About Title Loans

Using your car to get a loan can be a great way to get the cash you need quickly. These loans are popular because they usually don’t require a credit check and you can still use your car. It is important to understand that you lose the vehicle if unable to repay the loan.

You Must Own the Car

If you are the titleholder to the vehicle being used, then you are a good candidate for this type of loan. You will need to bring the vehicle title with your car, truck, motorcycle, or RV at the time you apply.

That means the name and address needs to match the name and address on all the other pieces of identification and documents you use when applying for the title loan.

Vehicle Must Have Equity in it

There must be no other liens or large debt on the car. It should be paid off or very close to paid off, for the lender to use it. Since the loan will be based on the value of the car, it will need to be a vehicle that does have current value.

Lenders will be leery about providing money on a car that has very little value. People may take the cash and then not return for a car that barely runs. The loan is based on the equity of the car. Kelley Blue Book can provide you a good idea of value based on make, model and condition.

Good Credit Not Required

A low credit score isn’t an issue when it comes to getting a title loan. The loan will be based on using your vehicle as an asset, so they don’t worry about what your score happens to be.

You Can Get a Decent Amount of Money

Depending on how much you need and the value of your vehicle, you can get quite a bit of money for your loan. Much more than a payday or pawn loan. The lender will evaluate your car and give you the loan you need based on the value of the car.

Not Just Cars

If you have a vehicle in your name, you can get a loan against it. RV’s, campers, boats, motorbikes, cars, and trucks are all valued assets. As long as it’s yours and has some value in it, you can use that as collateral for your loan.

You Can Still Use the Vehicle

The lender provides you the loan based on the value of the car, but they don’t keep the vehicle. This way, the borrower gets to continue using it. You need to be vigilant about making payments, however, to avoid losing the vehicle. All lenders will repossess the car if the loan becomes delinquent. Trust us, they will find and take the vehicle, so it’s important to be certain the loan can be repaid.

Title Loans

It’s an easy way to get a bigger loan when needed, and it’s also fast. Keep in mind that interest rates will be higher for title loans than a traditional bank loan. It is a good idea to have a repayment plan in place before you consider applying for a title loan.

Lending Bear has multiple locations where we can be of service with a title loan. Please see our title locations here.
We are the fast and friendly experts in title loans and we will do our best to give you fast approval. We welcome all types of cars in good condition and we don’t worry about your credit rating. Contact us today for more information.