So, you’re in need of some quick cash and plan to use your car to get a title loan, which can provide you with money in many cases in under 24 hours. But you need more than a couple of hundred dollars. That begs the question, how much can you get for a title loan? Let’s look at that – and more.
What is a Vehicle Title Loan?
It’s a short-term secured loan that uses your vehicle as collateral. Such loans are a good option for those who either can’t qualify or can’t wait for a bank loan, or for those who need a larger amount than what a payday loan can provide. Also, payday customers are usually required to repay their entire loan when they get their next check.
Further, title loans allow you to keep your vehicle while you’re making payments. Yes, some pawn shops will allow you to “hock” your ride, but you’d better take along a friend because the vehicle stays with theshop.
What are Good Reasons to Get One?
You’re free to use your title loan for whatever you wish, but some common reasons include:
- Home repairs
- Car repairs
- Legal issues
- Unanticipated bills
- Credit card obligations
- Debt consolidation
- Rent or mortgage
What are Some Benefits to Title Loans?
Some chief loan benefits include:
- Quick application process. You usually can apply online.
- No credit check necessary. You needn’t worry about your credit score.
- Fast approval turnarounds. Your funds could be in your account the next day.
- Competitive market rates. Better than what payday loans offer.
- Can keep your car. As we say, you can continue driving while repaying.
What Do I Need for a Loan?
Well, every lender is different, and state rules apply. But generally, you’ll need to have equity in your vehicle, which you must own free and clear.
In addition, just as with any other loan, you’ll need to provide your full name, address, phone number, and proof that you have the earnings for loan repayment. To figure out how much you can get, a title loan calculator comes in handy.
What’s the Process Like?
It can take weeks or even months to get an unsecured loan – one that isn’t tied to collateral. That’s too long for many people.
With lenders such as ChoiceCash, you’ll either apply online or over the phone. You’ll learn about what size loan is possible and what the repayment terms are. If approved, you’ll have your funds in short order.
Just How Much Can I Borrow?
With vehicle title loans, you can usually get between 25 percent and 50 percent of your vehicle’s value. Depending on the company, the value of your car is generally determined by its age, the number of miles on it, and its interior and exterior condition. You may have to supply the lender with photos of your vehicle.
According to the Federal Trade Commission, the average title loan amount is between $100 and $5,500. However, there are companies that will lend you as much as $10,000, or sometimes even more.
Regarding terms, you’ll usually get between 15 to 30 days before repayment is due. Some companies will give you up to a year.
What if I Can’t Make Payments?
Well, you are in danger of having your vehicle repossessed and sold to cover the loan. But you shouldn’t wait until you’re in trouble, since most reputable companies will work with you to make more-favorable arrangements or will offer you buyout and refinancing options.
So, how much can you get for a title loan? You now know that it’s up to the lender, as well as your car’s value. Just be sure that how ever much you’re seeking, you’re able to pay it back.