We understand that title loans may be a bit confusing. Over the years, customers have asked us hundreds of questions on how the process works. In order to help service you best, we compiled all of the most frequently asked questions about auto title loans in one convenient location. Want to know how title loans work? Find out the answers below.
It is important to know how title loans work before committing to the loan. Auto title loans are a type of loan that is that secured based on the borrower’s vehicle, which is used as collateral. The amount of money the customer is able to receive on the loan is based on multiple factors such as the customer’s vehicle type, mileage, year, and the amount of income the customer receives. Auto title loans are great for customer’s who are in need of quick funds, as they can typically be completed in as little as one day. Auto title loans are also known as car title loans, car title pawns, auto pawns, or pink slip loans. These are all the same loan product but the names vary throughout the United States.
Almost every title loan lender has different requirements for a title loan, such as minimum income requirements or certain vehicle qualifications. Typically, title loan lenders require the title to the vehicle, proof of income, proof of residency, and vehicle pictures such as the odometer and the VIN. Many online title loan lenders only require these documents to be sent in via text or email, while an in person title loan option you will need to bring the documents as well as the vehicle with you to receive your money.
There are many auto title loans that require no credit checks. The great part of an auto title loan is that the vehicle is the main source of determining the title loan amount, rather than the customers credit. For high value title loans however, the lender may require a credit check depending on the scenario and loan amount. All title loans help build your credit if you make payments on time, so they are the perfect option if you need quick cash but don’t have good credit yet.
Yes, you can absolutely get a title loan with bad credit. Title loans are meant for customers who may have no credit history, bad credit, or even a history or bankruptcy in the past. If you have foreclosures, bankruptcy, or bad credit, try applying for an auto title loan as your vehicle is used as the main determining factor of your loan amount and interest rate, not your credit.
No, you do not need a job for an auto title loan or personal loan. If you are looking for an online auto title loan, the lender will generally require the customer to have some sort of income however, such as disability, retirement or social security so they know the customer has the ability to repay the title loan.
Yes, you keep your car when you receive an auto title loan. The beauty of an auto title loan is that you only need to have a lien placed on your vehicle’s title while the funds are out in your name. This means that you are able to keep driving your vehicle while you are making payments on the auto title pawn.
Typically, the vehicle must be in your name to receive an auto title loan. If the vehicle is not in your name, the person’s name who is on the title will need to co sign on the loan, because technically the vehicle is still owned by them. If you need to transfer the title to your name before receiving the title loan, give us a call first as the DMV typically takes 3-4 weeks to send you the title once you transfer ownership and you may need cash now. There is options available to add the lien and transfer the title at the same time.
Title loans are also known as auto title pawns, auto title loans, car title loans, car title pawns, and pink slip loans. All of these names have the same meaning, they just vary by which state the customer is in. The concept is the same, and the customer is required to use their vehicle as collateral for the loan, but they still keep their vehicle.
To get an auto title loan, the vehicle has to be registered in the state that the loan will be done in. If you are looking for funds now but your vehicle is not titled in the state that you live in, give us a call first before you transfer the title, as it may take months to receive the new title from the DMV. There are ways to add the lien to the title at the same time that you are transferring the title to your state.
The amount you are able to receive from an auto title pawn depends on many different factors, but most importantly the type of vehicle you have, the mileage and year, as well as the borrower’s income amount. The title loan company has to determine that you make enough income to be able to at least pay the monthly payments for the loan, so the more money you make, the higher the auto title loan can typically go. Try our easy to use auto title loan calculator to get an idea of what your monthly payments would be.
The amount that your vehicle is worth when receiving an auto title loan is dependent on the vehicle’s year, make, mileage, salvage history, and what state the vehicle is in. The amount of money you can receive with your loan is based on the value that the title loan company deems they are able to receive if the vehicle must be repossessed and sold at auction.
The interest rate on a title pawn or title loan is dependent on many factors, such as the customer’s income, the vehicle year, make and model, and the amount of the loan that the customer is requesting. The title loan interest rate is also dependent on the company that the customer chooses as some lenders have minimum and maximum interest rates that they are able to charge.
Depending on if you want to get an auto title loan in person so that you can speak with a representative, or simply get an online auto title loan will determine where you can receive your funds. Many companies now offer completely online title loans, meaning that you don’t need to go in to any storefront locations for a vehicle inspection or to file paperwork, you will simply send in documents and vehicle pictures over the text or email after you receive your quote.
A lien free car title is a vehicle title that is completely in the customer’s name and is not owned by any other company or person. If you are still making payments on your vehicle for example, the bank or company that you bought the vehicle through will likely have their lien on the vehicle title, meaning that they technically own the vehicle and not you. If you only owe a small amount on your vehicle, there are many companies who will offer a title loan buyout and pay off the remainder of your loan, while giving you some cash on top.
Title loans are both for customers with good and bad credit. The beauty of a title loan is that customers can receive their funds the same day which is great for customers in need of instant cash, whether their credit is bad or good. Making successful and on time payments means that your credit score will increase over time, and will count as a payed off loan once completed. If you have good credit, you can try other loan options as well, but they make take longer to receive and will require your credit to be checked so the lender can confirm your payment history. Title loans are perfect for low credit customers.
Title loan interest rates are higher than the average loan, but are meant to be a short term solution for customers who need money fast. Some title loans have interest rates as low as 36%, while others go upwards of 200%. The key thing to remember is that title loans interest are based on the yearly rate, which means that if you only need the title loan for a few days, a week, or a month, you will only be paying the interest for the amount of time that the loan is out. Most title loan companies offer no pre-payment penalties, so the faster you can pay off your title loan the better.
Title loans are different than personal loans because you are using your vehicle as collateral for the loan. Personal loans typically require that the customer has some sort of credit history, because the customer is not putting anything up against the loan, so they need to show a history of successful payments. A title loan is great for customers with bad or no credit because they can be accepted for the loan regardless of their credit history.
Online title loans are becoming increasingly popular. Many lenders offer completely online title loan options, meaning that the customer only needs to send in pictures of their vehicle and the required documents over email or text to be approved. If you are looking for an online title loan option, check out our list of online title loan lenders.
It is entirely possible to get a title loan on a salvaged vehicle. Certain lenders will only offer title loans on ‘clean’ title vehicles, meaning that the vehicle has never been reported in an accident, while others will offer a title loan on every vehicle possible. Take a look at our lenders that offer title loans on salvaged vehicles. If you are looking for a title pawn on a salvaged vehicle, the amount that the lender is willing to lend may be lower because the vehicle would be worth less in the scenario that they had to reposes it.
To apply for a title loan, simply read through our list of online title loan lenders as well as lenders close to where you live. If you want to apply for an online title loan or want us to find the closest lender to you, simply apply or call to find your best option.
It depends on the lender on whether or not you can receive a title loan with no active bank account. Some lenders require that you have an active bank account because they deposit the funds directly into your account, while others are able to send you a money order or give you cash in hand.
Yes, it is very possible to get an auto title pawn refinance, depending on how much you currently owe on the loan. If you received a loan and determined that the interest rate or monthly payments are too high, try getting an auto title loan refinance so that your monthly payment and interest rate drops. The company will pay off the remainder of your current loan, and may even be able to give you additional funds on top, depending on how much equity is left in the vehicle.
Your vehicle does not necessarily need to be paid off for an auto title pawn, because if your vehicle is worth enough money the lender has the ability to offer a title loan buyout, which is when they pay off the remainder of the loan amount and give the customer any funds that are available on top of this buyout amount.
Many times, title loan lenders will require that the customer provide references when getting a loan. Depending on the lender and the loan amount determines whether or not the lender will be calling your references. If you are worried about the lender calling your references, simply ask them if they will be calling the references, as many customer’s don’t want others to know that they are applying for a title loan. Want to know how title loans work?
Depending on the state the customer is in and the lender determines if you can get a title loan on a motorcycle. If you don’t know if your state offers title loans on motorcycles, see if our list of motorcycle title pawns and pick the best option for you.
Online title loan options require that the customer send in pictures of both documents and vehicle pictures through text or email, depending on the company. If you are looking for an auto title pawn online, you typically need proof of income, proof of residency, pictures of your vehicle including the odometer and VIN, and a picture of your vehicle title.
Many title loan lenders offer convenient online payment options, so you can be sure to never miss a monthly payment. If the lender does not offer an online title loan payment option, they will at least have a phone line that you can call in to. Make sure to ask the lender before you finalize your loan how you will be able to make your title loan payments.
Currently, over 40 states offer title loan options, while a dozen or so offer online title loans. Online title loans are the same as an in person title loan, but the customer only needs to send in pictures or documents instead of going into the store with their vehicle. If you want to see what online title loan options are available for your state, check out our list of online title loan options.
It is always a good idea to know how a loan product works before committing. Now that you know know how title loans work, see if you qualify by completing a 30 second, no obligation application.
Title loans near me
Every state has different laws and regulations when it comes to being approved for a title loan. Some allow title loans on salvaged vehicles and some don’t. Some states offer online title loans with same day approval, while other states require you to bring in your vehicle for an in person inspection. The great thing about Trusted Title Loans is that if there is an option in your state, then we have a solution for you. Find the most trusted title loans locations near you.
So.. what is an auto title loan?
Still have questions and concerns about how title loans work? Not a problem. Do not hesitate to give us a call! 888-575-5150 – Open 7 days a week, we are here to give you the answers to all of your title loan questions. Don’t waste hours reading through useless information. We are here to be direct and honest, saving you time, money, and a headache.
Title Loans Simplified
We have compiled the top title loan companies throughout the United States. Whether you have a vehicle that you don’t think will qualify for a loan or don’t think that your income is enough to qualify for a title loan, we likely have a lender for you.