A title loan is a useful way to borrow money regardless of your credit rating. As long as you own a vehicle that qualifies, you can borrow money and use that vehicle as secured collateral for the loan.
Most title loans are an option only if you own your vehicle outright, though some lenders may accept vehicles that you have significant equity in. In other words: you’ve almost paid it off.
While this type of loan usually applies to passenger cars, pickup trucks, and motorcycles, there may be restrictions based on age or vehicle value. Sometimes other types of vehicles are eligible for title loans too.
In this article, we will discuss the types of vehicles that are eligible for title loans and provide some tips for understanding and navigating the title loan process.
One of the most common types of vehicles that are eligible for title loans are cars. Most lenders will consider a wide range of car models and makes for title loans, as long as the vehicle is in good condition and has a clean title.
To be eligible for a title loan, the car must be fully paid off, and the borrower must be the sole owner of the vehicle.
Trucks are also commonly eligible for title loans, although the lender may consider the age and condition of the truck when determining the loan amount.
Each lender’s standards vary of course; thus some may loan money on a 10-year-old car while others may not.
Similarly, motorcycles and recreational vehicles, such as ATVs and boats, may also be eligible for title loans.
In addition to cars, trucks, motorcycles, and recreational vehicles, some lenders may also consider other types of vehicles for title loans, such as trailers, tractors, and heavy equipment. However, eligibility may vary depending on the lender and the specific vehicle in question.
To determine whether a specific vehicle is eligible for a title loan, it is important to contact the lender and provide them with information about the vehicle, including the make, model, and year. The lender will then assess the value of the vehicle and determine whether it is eligible for a title loan.
In many cases, the benefits of getting a title loan include fast access to funds, your credit rating may not matter, and you continue using your car while paying back the loan.
It’s common for your loan to be approved within 24 hours or less, which is why this is a popular option for access to quick funds when the need arises. Most lenders do not reject borrowers who don’t have a credit history, or those who have had credit problems in the past.
And using your car for collateral is not the same as selling it. The vehicle remains in your possession, and you continue to use it normally.
If you are considering a title loan and are not sure whether your vehicle is eligible, there are a few steps you can take. First, you can contact a lender such as Lending Bear and ask for more information about their requirements for title loans.
You can also research the value of your vehicle online or seek out the advice of a professional appraiser. This can help you to get a better understanding of the loan amount you may be eligible for and make an informed decision about whether a title loan is right for you.