“Expect the unexpected” may sound great until something “unexpected” happens to you. When you’re dealing with a medical bill or an electrical issue in your home that came out of nowhere, you may not know where to turn. How can you get a loan without jumping through hoops and with no hassle? Well, by using your car as collateral for a type of secured loan called a title loan? A title loan may be your answer, and it won’t take a few days or longer to get the funds you need- unlike some traditional bank loans.
With Max CashⓇ Title Loans, we can connect you with a network of carefully selected lenders at no cost to you. Getting connected to a title loan has never been easier! You don’t have to leave your home to apply for the funds you need. Instead, you can get started from the comfort of your home today! Keep reading to find out how to use your car as collateral for a title loan.2 5
What Do I Need to Use My Car As Collateral for a Loan?
When using your car as collateral for a loan, the money you could receive is based on the equity in your vehicle and your income, among other factors. This is why it can be such a convenient loan solution if you don’t have stellar credit. To apply for online title loans, you won’t have to deal with a ton of paperwork! But, you will typically need to provide the following items:
- Lien-Free Title: Your car must be lien-free, so there can be no outstanding liens placed on it. The title must also be in your name at the time of your loan inquiry. If someone else’s name is on the title, you will need to change it at your local Department of Motor Vehicles (otherwise known as the Bureau of Motor Vehicles, Division of Motor Vehicles, etc.). To complete a title transfer, you must be the rightful owner of the car.
- Photos of Your Car: You will need to take photos of all four sides of your car (plus the odometer and VIN) and submit them with the other documents. The value of your car is one of the most important parts of your application. Therefore, the lender will need to view your car in person or see recent photos of your vehicle to determine its current condition and overall value. Your car’s make, model, age, and mileage all factor into its resale value! To get an idea of what your car could be worth and what your payments can look like during the repayment process, try our car title loan calculator.1 5
Other Documents to Get a Loan Using Your Car as Collateral
- Valid, Gov. Issued Photo ID: To verify your identity, you’ll need to provide your driver’s license, U.S. passport, or state-issued photo ID (like a REAL ID). Note, that the name on your ID should also match the name on the car’s title. Additionally, you must be at least 18 years old.
- Residence: Lenders will want you to submit proof of residence to verify that you reside in a state that allows title loans. Generally, a recent utility or phone bill will work.
- Proof of Income or Ability to Repay the Loan: You’ll also need to show proof of your income (recent pay stub or bank statement), but it doesn’t have to be from just employment, many other forms of regular income may also work, as long as your ability to repay the loan is valid.
Max Cash Title Loans can help cut the headaches out of the title loan process. If you have questions about the required documents you’ll need, call (855) 561-5626 to get an answer now!
Can I Use My Financed Car as Collateral for a Loan?
Short answer? Yes, it is possible to use your car as collateral, even if it isn’t completely paid off. However, it will depend on the particular lender’s requirements for the car’s available equity, and they can vary. The equity built up in the car is what matters the most! Equity is simply your car’s market value compared to what’s left on the current loan.
If you already have an existing loan on your car and you’re not happy with the current APR, or just want better terms, consider a title loan refinance. Max Cash Title Loans works with lenders who may be able to deliver competitive interest rates and possibly more time to pay off the loan. Don’t stay in the dark, a Max Cash Title Loans representative can help you secure a lender with convenient loan terms and a flexible application process. 2 5
Is it a Good Idea to Use Your Car as Collateral for a Loan?
Sometimes you just need fast cash, and if you’ve gone all over town searching for a loan and have been turned down, your options can seem limited. Payday loans are another way to go, but you may need more money than what they can offer.
And, the repayment period is shorter than you might think! But by using your car as collateral for a title loan, you may be able to tap into a larger loan amount, depending on your income, state of residence, and your car’s value.1
Max Cash Title Loans can show how your car can actually work for you with a title loan! You can use your funds to pay for unexpected emergencies, and you get to keep driving your car like you normally would while you repay the loan. Your car may be used as collateral, but you stay behind the wheel as long as you keep up with your payments!5
Do You Need Good Credit to Get a Loan Using Your Car as Collateral?
No matter how hard you work, if you have bad credit, traditional banks or lenders will most likely deny you approval for a loan. Not to mention the lengthy and time-consuming application process! By using your car title as collateral for title loans, you can access a more flexible way to get emergency funding.
If you currently own a car with a lien-free title and can validate your income, you can apply for the funds you need now with Max Cash Title Loans. Don’t let your reservations about your bad credit stand in the way of the funds you need. Call (855) 561-5626 right now!
What Happens When You Default on a Car Loan Where Your Title Is Held as Collateral?
Vehicle repossession can happen to 1 in 5 cars when borrowers default on their loans, either due to not making scheduled payments, or not paying at all. It’s really the worst-case scenario for all parties, but this is typically what happens:
- Default Notice: Lenders may be required to send a notice (or warning) regarding defaulted payments. They may offer a grace period in some cases to hopefully let the borrower catch up on payments.
- Repossession: If the borrower still cannot pay on the loan, the lender can legally repossess the vehicle. The exact repossession laws vary from state to state.
- Vehicle Resale: Lenders also have the legal right to then sell the vehicle to cover the loan’s remaining balance. If there is a surplus, the lender must give the borrower the extra amount. If the sale of the car does not cover the amount owed, then the borrower is responsible for the remaining balance.
Having your car repossessed may sound like a scary prospect. But, it’s important to know about the benefits of title loans and be aware of the potential risks. If you can’t repay your loan due to some unforeseen financial hardship, you should reach out to your lender ASAP. Many will be willing to work with you to find another solution! Make sure to reach out to them before you miss a payment, not after.
Where Can I Get Started With Max Cash Title Loans?
You can’t predict everything that may happen in life, but you don’t have to deal with it alone. If you have a lien-free title to a qualifying vehicle, you can use your car as collateral for emergency funding! We at Max Cash Title Loans realize you’re not just a number, but someone we want to help. You can access a convenient online inquiry process through Max Cash Title Loans. If you’re ready to get the ball rolling, call us now! Or, start with this quick online inquiry form today!2 5