If you have poor credit, you are not alone. Many Americans struggle with low credit scores and may not be good candidates for unsecured loans, but title loans are a different story. If you need fast funds, you might be wondering – How much can I get for a title loan? The answer isn’t as cut and dry as you might think! 1
But you can get a better idea of how much you can be eligible for by understanding what goes in to determining your loan amount. If you have any questions about loan amounts, requirements, or other information relating to title loans, don’t hesitate to reach out to Max CashⓇTitle Loans at 855-561-5626!2 5
What Factors Affect How Much I Can Get for a Title Loan?
The biggest factor that impacts how much you can get for a title loan is your car’s total value. After all, your car is the star of the show! Title loans are secured loans that let you borrow a portion of your car’s value by using your car’s title as collateral for funding. If your car has a higher value, you can typically expect a higher loan amount – provided, of course, that you can show proof of income and live in a state that allows higher loan amounts.1
Estimating the Loan Amount and Your Car’s Value
Go to Kelley Blue Book and get the trade-in value of your car, not the retail value. Consider this to be your starting point. Factors that impact your car’s baseline value include its age, mileage, make and model, and trim level. Other characteristics, like upgrades and modifications, can also increase or decrease your vehicle’s total value.
Once you have the trade-in value of your car, it can get kind of tricky because there are different factors that affect the loan offer and the value of your vehicle to the title loan lender:1 5
- On your car title does it say “salvage vehicle”? If so, your potential loan amount will be significantly diminished because you have a branded title.
- Is there any substantial damage to your vehicle? Totaled cars that are not roadworthy will not be eligible to be collateral for a loan. But, if your car is in working condition with cosmetic issues due to minor damage, you can still qualify for a title loan. But, that damage will likely impact your total loan amount because the value has decreased.
Other Factors that Impact Loan Amount
The loan amount will be determined by the other aspects of your loan application, such as:1 5
- How much income do you make in relation to the title loan amount?
- Are there title loan laws in your state which limit the amount you can get?
- Does the title lender consider your credit?
Some companies pull credit, but some do not. The ones that pull credit will typically look at your payment history, your credit score, and if you are in a court-ordered bankruptcy process or credit counseling. This credit check also will help with the interest rate they offer you. They will not be able to pull your credit without your consent and that is not usually done on the initial inquiry for a car title loan, but rather when you fill out the full loan application. 5
Understanding the Loan-to-Value Ratio For Title Loans
Car title loan lenders tend to have different loan-to-value ratios (LTV). Basically, LTV is a calculation used by lenders to assess the total risk of a loan, and it is a percentage calculated by dividing the loan amount by the appraised value of the asset (in this case, a vehicle) being used as collateral for the loan. For example, let’s say that your title lender with a 50% maximum LTV has approved you for a loan. If your car is worth $5,000 and you can provide sufficient evidence of income, your loan amount is estimated to be $2,500.1 5
Lenders use LTV to determine how much money they are willing to lend and at what interest rate. A higher LTV means that the lender is taking on more risk, so they will typically charge a higher interest rate.
What is the Most You Can Get for a Title Loan?
The most you can get on a car title loan depends on your state of residence, the lender you work with, and your car’s total value. Additionally, your income will play a role in the maximum title loan amount you can qualify for. The simplest way to learn about how much you can get for a title loan is to place a loan inquiry to get an instant estimate NOW, 24/7!5
What is the Minimum Credit Score I Need to Get Approved for a Loan Against My Car?
As mentioned above, different lenders have different loan terms and requirements, as well as LTVs. Some lenders may have a minimum credit score requirement, but keep in mind that you do not need to have a strong credit score to qualify for the financial help you need.5
How are Title Loans Calculated?
Auto title loans are typically short-term loans. They are structured to help the consumers to meet their immediate financial needs. This is where you need to be an educated title loan consumer and read through your title loan terms and conditions before you sign a loan agreement.4
Title loan interest rates are based on APR in most cases (Annual Percentage Rate) and you are required to pay back both the principal loan amount and the interest rate. If the lender offers you a diminishing interest rate loan (That’s right! With each payment, you make the interest rate AND PAYMENT drops – not offered by all lenders!) or a monthly interest rate, know you can save a lot of money by paying off your loan early.3 4
If you do this, make sure when you make the payment to tell the lender that the overpayment is to be applied towards the interest because if you don’t it won’t.
The good news is that typically, there are no prepayment penalties.3 This means that if you want to cut that payment amount down, then pay for more than your minimum loan payment per month.
What Do You Need to Apply for a Car Title Loan?
Typically, to get a title loan you will need a paid off car and a valid, clear title in your name. You must also be of legal age and have proof of income, along with a few other documents:
- Proof of Residence
- Photos of Your Car or Truck
- Proof of Registration and Insurance May be Required
Other documents may be required, so reach out to us directly to see what you will need to get a title loan!
How Do I Apply for a Title Loan?
The first step is to complete an inquiry online or over the phone. We will ask about your vehicle, including its make, model, and current mileage. if you have your vehicle title handy we can gather info about your vehicle directly from that.
We will ask you about what is your minimum loan amount and what type of payment plan you want. If you want to do this yourself, then use our car title loan calculator and put in a loan term and your estimated loan amount.
Once we gather the few bits of information about yourself and your car, we can then figure out what vehicle title loan lender will be best for you. But, you can ask us what all your loan options are at this time.5
Depending on if you wanted to do a complete online title loan process or go into a store will determine the next steps. If you are doing an online title loan then you will need to take pictures of everything with your cell phone and forward them to the lender using a number that the lender will give you. You can also email the pictures.
Last Steps to Get a Title Loan
Then you will speak with the lender who will ask you information to complete your title loan application. This can be verbal or in person. They will ask you what you are looking for in monthly payments and loan terms. If you and the lender agree they will send your information to an underwriter who will look at the information you provided and agree with the loan officer or not.
Once the underwriter is done, how much can you get for a title loan is complete. You will need to give them your paper title so they can place a lien on it. You still keep your car while paying your car title loan because this is not an auto pawn!
Getting Your Title Loan Money
Now that you know how much you can get for a title loan, you might be wondering how to get your money. Vehicle title loan lenders often have several ways to get your money after full loan approval. If they have storefront locations near you, you can go right in! If they have licensed partners, you can go to one of them and get your funds in person (like a currency exchange or Walmart). Most title lenders offer direct deposit, so if you have a bank account, this can be a convenient and fast option. In the event that you want a check, then the check will be sent to you through the mail. But, in some cases, the lender can have a partner print it for you and you can go pick it up in person.
How Do I Pay Off My Title Loan?
Almost without exception, the first payment is 30 days from the date you picked up your money. Then every month after that on that date if you are paying the loan back in installments. Paying off your loan faster will typically save you hundreds if not thousands in interest.
If you chose a company that has a diminishing title loan payment (these are companies that with each payment your next payment is lower until your interest rate is almost 50% when you started) then you will need to ask them what this month’s payment is. This type of loan is usually a hybrid title loan with a bank backing the loan.
The larger title loan companies will give you a portal where you can log in into your account and see how things are going, your payoff amount, and your next payment.
When Do I Get My Title Back?
After you are done with your last payment the lender will give you a lien release. This means that you will have your physical title back in your possession but it does not mean the lender is off your title. If you need your title right away then take the lien release to your local department of motor vehicles and they will remove the lien and send you a new title but will give you a temporary title there and then.
Benefits of Car Title Loans with Max Cash Title Loans
If you’re asking yourself, “How much can I get for a title loan on my car?” that means you are serious about getting the money fast and easy and there is no better company to start the process with than Max Cash® Title Loans. Our highly rated and FREE service means you will not be under pressure and will have time to ask the questions you have found uncomfortable asking directly to a lender.2 4 5
Car title loan companies, if they are the larger ones, may report to credit bureaus. That means you can seriously benefit your credit file if you made timely payments on your loan. With your credit score going up due to on-time payments reported by your lender or loan servicer, it will help you improve your credit and get better terms.
Vehicle title loans are quick, and you can get your funds in as little as 24 hours!2 5
Use a title loan to get the peace of mind you need during a tough financial situation. If you’re ready to get started, complete a short inquiry form online now or call a loan agent 24/7 at 855-561-5626.