Boat Title Loans
Getting a title loan with a paid off boat can be a fast and easy way to get cash. With a boat title loan, you’re using the equity available in a boat or watercraft that you own as collateral for a loan. Loan amounts and payoff terms will often vary, but you can expect anywhere from a few hundred dollars to well over five thousand dollars for a high end boat. Applying for a boat title loan is easy and you’ll be surprised at how quickly you can qualify if you have all the required paperwork and documents in order.
How Do Boat Title Loans Work
As with most title loans, lenders aren’t just concerned about your ability to repay the loan but also about the value of your boat. Most borrowers are required to hand over the title of their boat and use it as collateral. The amount you can borrow with a boat title loan will generally be about 40-60% of the boat’s resale value. Lenders will offer this amount because they need to be able to sell the boat and make a profit if you should default on the monthly payments. So as an example, if you use a title loan calculator and determine your boat was worth $2,000 you can expect a loan amount of $1,000 based on the available equity after a certified inspection.
What’s required for a boat title loan – Do I need good credit
The good news is that many companies who offer title loans online direct deposit will with borrowers who have bad credit, poor credit, lower credit, or no credit. Typically, addressing these three categories is the first step in acquiring a boat title loan. Usually, borrowers are required to get a simple and updated appraisal of the value of their boat and sign receipts from their insurance.
Additionally, borrowers are required to show some form of ID and provide evidence of their boat insurance policies and other applicable licenses and safety documents. In some cases, borrowers can use the title as collateral for a larger loan. Boat title loans are generally not sought by borrowers who have good credit since the interest rates are extremely high and the amount of the loan stipulates that it needs to be paid off on time in monthly installments.
Another requirement for boat and watercraft title loans is proof of insurance. The boat needs to be fully covered in the event of a loss or accident. The inspection is key to getting approved as well. Most boat inspections will take longer than what’s expected with a vehicle or motorcycle title loan as there are many different variables to be checked to determine the boat’s resale value.
What are the benefits and drawbacks of a boat title loan?
The best part about a boat equity loan from Premier Title loans is that you can keep using the boat while you pay off the loan. It used to be that you had to hand over the boat as collateral for the loan. Think of this as a boat pawn and similar to an auto pawn. But now most lenders are set up to allow you to hand over the boat’s pink slip and that’s all the collateral they need. Boat title loans are different from most car title loans because you can often borrow less money and expect a shorter payoff time. All situations are unique, but on average boats are simply worth less than your average vehicle. That means you will probably have fewer requirements versus the paperwork needed for an online car title loan.
Another difference comes into play when you need to complete the inspection of your boat or watercraft. With a vehicle title loan, you can have it inspected within a few minutes at most locations, even if you can’t find the car title! Boats are different of course and the inspection and qualifying process can take longer. Regardless of credit, most borrowers can benefit from paying their bills on time and using a title loan as this type of loan can help them. Often, borrowers will pay for things they want or need without even thinking about it.