EVERYTHING YOU NEED TO KNOW ABOUT CAR TITLE LOANS

Before you get a car title loan, you should first find out how they work!

HOW DOES A CAR TITLE LOAN
WORK AND HOW TO GET ONE

Are you interested in taking out a car title loan, but not sure how they work or what you need to get approved? You should first understand that these loans use your car's equity as collateral. There's less emphasis on your credit history, and the real underwriting focus is on the equity in your vehicle.

APPLY FOR A CAR TITLE LOAN
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Car Title Loans - How Do They Work

Car title loans aren’t for everyone, and they should only be considered when you can’t qualify for other low-interest unsecured loans that require good credit. Title loans come with double-digit interest rates, require you to sign over the car’s title to your lender, and risk losing your vehicle if you fall behind on payments. That doesn’t mean they’re not a viable option for someone who needs emergency cash. However, before moving forward with a car title loan, you must fully understand how they work and determine if this type of secured loan is right for you.

With a title loan, you’re using your car as collateral, allowing you to borrow more without a full credit check. Since your vehicle serves as security for a title loan, you can potentially borrow 30% to 50%  of its current resale value.

Using a car’s pink slip as collateral instead of your credit history, you can get more money than you would with a typical unsecured loan. Additionally, companies are more interested in the vehicle’s value than in your credit report or past payment history. You can pay off the total amount over months or years, similar to an installment loan. Compare that to a payday advance, where the total amount is due within weeks. Most car title loan lenders will also allow you to pay off the loan early with no pre-payment penalty.

Premier Title Loans with fast same day funding for paid off cars.

What To Expect When Applying For A Car Title Loan

When you apply for a car title loan, you’ll have the best chance of being pre-approved quickly if you have a lien-free pink slip and some form of income verification ready to go. Here at Premier Title Loans, we can often get you pre-approved with these two documents, and then you’ll need to show proof of registration, a state-issued ID, and insurance to an agent or notary during the vehicle inspection. From start to finish, the pre-approval process for a title loan can take less than an hour, and most qualified applicants can get cash for their vehicle’s equity in as little as one business day.

Once your loan is approved and you’ve completed the inspection, your lender is added as a lienholder to your vehicle’s title. You can keep the car and continue driving it. However, during this time, you can’t sell or transfer the vehicle while the loan is still outstanding. Once you’ve paid off the loan, your title is returned to you.

Do you know what types of vehicles qualify as security for a title loan? Nearly all makes and models of paid off cars, motorcycles, and SUVs can be used as collateral. But you have the best chance of qualifying in most states with a vehicle worth $5,000 or more, and 2015 or newer cars with fewer than 100,000 miles tend to have the highest values. Another thing to consider is that trucks and SUVs tend to hold their values much better than cars, which need frequent maintenance and depreciate quickly. Anyone with a newer Toyota Tundra, Chevy Silverado, or Ford 150 has an excellent chance of qualifying for pre-approval on a title loan based solely on the value of their truck!

For the most part, a title loan company wants to know that there’s enough equity in the vehicle in case of default or repossession. Even though your credit score and borrowing history aren’t critical for this type of loan, it can help to have some credit history, as your lender wants to know you have a history of loan repayments. Call Premier Title Loans at 800-250-6279 to start your application, or use our online form to enter your vehicle details. We’ll get you a pre-approval estimate quickly, and the underwriting process is quick and hassle-free if you have the vehicle title and your proof of income ready for verification!

Find A Direct Lender & Get A Car Title Loan

Most borrowers don’t know where to start when looking for a top title loan company. One of the most common questions is: Do I apply online with a company like Premier Title Loans, which offers pre-approval through licensed lenders in my state? Or should I start the application process with a local lender in my neighborhood? People also ask: How do I get a car title loan, and what’s the process for applying and being approved? Once they know that Premier Title Loans can help them in multiple states, the next step is to start the pre-approval process. We’ll walk you through the underwriting requirements and next steps regarding a potential vehicle inspection and document signing.

Another factor to consider is your lender’s reputation and the helpfulness of its customer service team. Can you contact your title loan rep during regular business hours? Will your lender work with you to avoid a title loan repossession or missed payments? Or do they not have your best interests in mind? Perhaps they’re looking to extract as much money from you as they can with high interest rates and excessive repayment terms. You can quickly find this information online through customer reviews and complaints, and use it to make a better, informed lending decision.

Are you ready to compare title loan companies? When you want to find a top lender, it’s best to look for a valid state lending license (title loans are often regulated at the state level), no prepayment penalty, and specific details about your interest rate before you sign. Another thing to avoid is companies that pressure you to borrow more than what you need. Title loans have high interest rates, and any amount more than what you need for a financial emergency will end up costing you in the long run.

Learn about how a car title loan works!