Car Title Loans

It happens that there are times when you need money quickly. But it can sometimes be hard to get a loan if you have bad credit. However, getting a loan approval is always easier when you have collateral!

Car title loans allow you to borrow money using your vehicle title as collateral. While the loan terms and loan amount will vary based on the condition of your car, car title loans remain an option for people with low or bad credit to get through their short-term financial difficulties.

If you have a driver’s license , a car, and want to explore the process of using one of our vehicle title loans, read on below to learn more. 

Get a Car Title Loan Online Today!

If you’ve been faced with an emergency medical bill, sudden home repairs, or simply need a quick cash payment to fulfill an unexpected financial outlay, using your auto title as collateral for a car title loan might be the right move for you.

Not sure what is required to receive payment? It’s simple. To be approved for a car title loan, all you need to do is show proof that you:

  • Are the sole owner of your vehicle
  • Have no other liens against your automobile
  • Have the vehicle registered and insured in your name

That’s it! No credit checks are required. With these types of loans, your vehicle will be evaluated, and in no time, you’ll be able to borrow a cash amount related to the vehicle’s present value and condition. If you’re having financial difficulties and don’t have credit, don’t let it get you down. Even those with savings sometimes find themselves without enough cash to cover their short-term needs. 

How Does the Process Work?

Car title loans do not require details of your credit history or any credit checks. All you need to get a cash payment in your pocket today is the car title, which the lender will keep as collateral on the loan.

Once you’ve filled out the form and been connected to a lender, they’ll put a lien on your car title in exchange for the loan amount. When the loan is repaid, the lien is removed, and the car’s title is returned to you, the owner. A lien is an agreement that makes the loan secure and offers your vehicle as collateral. In case you stop paying back the loan, the lien allows the borrower to repossess your car.

 

What are the benefits of car title loan?

Getting a loan amount valued against your vehicle is one of the simplest ways to deal with short-term cash shortfalls. You can be approved for a payment without dealing with any of the cumbersome paperwork associated with other loan types.

Quick Process: Because there is no need for a credit check, processing this loan is fast. It’s simple and takes only ten minutes to enter the required information online and submit the application. In the majority of cases, your online car title loan is provided on the same day you apply. Put money in your hand when you need it most!

No History: The loan terms will not require you to provide a credit history to get you the cash that you need. Your vehicle title is the collateral, and so with very few exceptions, approval is almost guaranteed.

Continue to Use Your Car: You get to keep and use your car during the loan period, which means your life is not adversely affected, and you can still tend to the things you need to do.

Take the Pressure Off: Everyone needs a helping hand from time to time to get through a difficult period. Getting a car loan can be a way to give yourself a helping hand and reduce your stress by getting you the cash you need right away.

What are car title loans or auto title loans?

Car title loans (or auto title loans) are like personal loans. They are loans which are to be repaid in installments over a period of time, plus interest. Car title loans are secured loans, which means you have to put up collateral to get the loan. In this case, the collateral asset is a vehicle that you own. That means if you happen to default on the loan, your vehicle could be seized.

What is the difference between a car loan and an auto title loan?

A car loan is a type of loan in which the money can only be used to purchase a new or used vehicle. In the case of a car title loan, the vehicle you already own is collateral for a personal loan.

The money from an auto title loan can be used to purchase anything you want.

Note that once you’ve completely paid off a car loan, you can then use the vehicle (which you now own outright) to secure an auto title loan.

What are the car title loan eligibility requirements?

Generally speaking, a car title loan is easier to qualify for than an unsecured personal loan because you’re putting up your vehicle as collateral. However, there are a few other requirements that need to be met, as outlined below.

  • You need to own the vehicle outright
  • You must have all the appropriate registration papers for your vehicle
  • Your vehicle must be fully insured before it can be used as collateral
  • You must be 18 or older and be in possession of a valid driver’s license
  • Your vehicle must be no more than 8 years old
  • There cannot be any outstanding debt attached to your vehicle

Can I get an auto title loan if I have bad credit?

Yes. In fact, an auto title loan is a great way to get extra cash if you have a bad credit score. In this case, your lower score is offset by the asset (your car) that you’re putting up as collateral. This means your application will appear far less risky to the lender.

How does a car title loan work?

Here are some quick facts about car title loans:

  • Car title loans or auto title loans are secured car loans
  • Term lengths that can vary between 3 months to 3 years
  • They feature high interest rates, which can legally go as high as 60% (APR)
  • The value of your car is used to calculate the amount of the loan (you can typically get up to 50% of the resale value)
  • There can be no outstanding liens or outstanding loans on your vehicle

Once you and the lender reach an agreement, a lien is placed on your vehicle, which is only lifted once the loan is paid off in full.

What is a lien?

A lien is a type of security interest that is placed on the vehicle. It’s an agreement that makes the loan secure and offers your vehicle as collateral. In case you stop paying back the loan, the lien allows the borrower to repossess your car.

How do I get a car title loan?

Follow the three easy steps below!

Gather Your Documents First

This sounds obvious, but you’d be surprised at how many loan applications are delayed because people don’t have all the documents they need upfront.

What documents do I need for an auto title loan?

There might be some differences depending on which lender you choose to work with, but typically most lenders will require:

  • Personal identification: This will definitely include your valid driver’s license
    and may include other valid government-issued photo ID.
  • Financial information: Some auto title lenders may require proof of income
    and employment, such as bank statements or pay stubs.
  • Vehicle title documents:You must provide a car title document to prove
    that you are the legal owner of the car.
  • Car insurance:You need to have insurance on your car to get an auto title loan, so make sure you have the documents to prove it.
  • Vehicle details: You’ll need to provide information regarding your car’s make, model, year of the car and mileage.
  • Vehicle inspection: In some cases, the lender may require you to submit a car appraisal to verify its condition and value.

Find a Car Title lender

It’s important to note that auto title loans are not offered by traditional financial institutions like banks and credit unions. Only alternative lenders offer them. Make sure you get quotes from several lenders as you shop around for an auto title loan that’s right for you.

Disadvantages of a car title loan or an auto title loan

Getting your car seized: Since auto title loans are secured loans with your vehicle as collateral, if you miss any payments, your lender can seize your car and sell it to recoup the payments.

Relatively higher interest rates: Car title loans might be secured, but they can often have MUCH higher interest rates than other secured loans because they’re offered to borrowers with less-than-ideal finances.

High fees: Extra fees associated with the car title loan can quickly add up. These could include administrative fees, loan origination fees, vehicle inspection fees and more. To avoid any pitfalls, ensure that you shop around, read the fine print on all contracts, and pay back the loan within the allotted time. Car title loans are a great solution if you’re looking to get some emergency funds – just be smart about how you go about it.

Complete your application

Review your offers and choose the best lender for your needs. After that, it’s just a matter of waiting for approval. In the case of auto title loans, this process is usually quick and can be done in a couple of days at most.

Car Title Loans Frequently Asked Questions

Getting approved for an auto title loan is fast. It can take as little as 15 minutes.
All you need is a car title (be the owner of your car). Other than that, the process is
very straightforward.

No credit check. Unlike other loans, there’s no down payment and no credit
check. All you need is the car title. Lower interest rate. Car title loans are secured loans, which entail less risk for the lender. That usually means a lower interest rate for you.

You can still use your car. While you’re repaying the auto title loan, you’ll still be able to
use your car as you usually do.

Unfortunately, the answer is no. If you don’t own your vehicle outright, you won’t be approved for an auto title loan.

Since auto title loans are secured loans, they often come with less strict financial requirements, including credit scores. This typically means that if your credit score isn’t that high, you can still have a good chance of being approved.

The amount of your loan will depend on the potential resale value of your vehicle, which is affected by its age and condition. You can usually get a loan amount equal to 25% to 50% of your vehicle’s value. Remember, the value of your vehicle is not the price you originally paid for it!

An auto title loan could help in building your credit if the lender reports payments to one or both Canadian credit bureaus. If not, then the loan will have no effect on your credit. If this factor is important to you, just make sure you ask your lender if they report payments before signing a contract