You Can Apply for a Title Loan if Your Car Has Positive Equity
No one enjoys paying bills, but unfortunately, it’s a big part of life. If you’re struggling to make ends meet, you may consider ways to access cash. Asking friends or family for financial help can be uncomfortable, and traditional bank loans may only accept you if your credit score is high enough. Applying for a title loan can be an excellent option for people who need money quickly but may not have a good credit history! You can use your vehicle as collateral for funding, and qualified borrowers may receive cash within one business day of applying.
Obtaining a title loan on a leased car is possible, but it depends on how much you still owe to the bank or dealership. Lenders look at car equity when determining approval for a title loan and possible loan amounts. The best time to apply for a title loan is when your car is paid off or close to being paid off! In order to get a title loan on a leased car, the title loan lender must also buy you out of the lease and become your lender for both the car loan and the title loan. Below is more information about how car equity plays a role in title loan approval and how to get one on a leased car. You can begin your application for a title loan by filling out a pre-qualification form or calling to speak with a title loan agent.
Why Do I Need Car Equity to Get a Title Loan?
Title loans work by allowing people to use their cars as collateral for money. This option is considered secure because a physical asset is on the line if you don’t pay the funding back. Traditional bank loans are unsecured because they don’t use any form of collateral– instead, they look at credit scores to determine eligibility for a loan. If your score is too low, this can indicate that you’re financially irresponsible, and lenders may not want to do business with you. Your credit score is considered during a title loan application, but lenders look more at car equity and income proof. Car equity means your car’s overall value minus how much you still owe on it to a bank or dealership. In layman’s terms, car equity is the resale value of your vehicle. To qualify for a title loan, you must have a certain amount of equity in your car. This number can affect your approval and how much money you can borrow. Borrowers can receive anywhere from 25-50% of their car equity in funding, but this can vary depending on which company you choose.
Are Title Loans on Leased Cars Subject to Inspection?
The best thing about an online title loan is that you don’t need to visit an in-person store! Interested applicants can send in recent photos of their vehicle, which will serve as the virtual inspection. You can proceed with a title loan inquiry online if your car has some positive equity. You must submit the necessary documents for approval while applying for a title loan. Among these documents are recent pictures of your car that lenders can use to verify its overall condition. They will expect multiple photos of the following:
Front, Back, and Side of the Vehicle
The Odometer Reading
The VIN (Vehicle Identification Number)
Additionally, lenders will consider several aspects of your car to determine its shape. Many factors will be considered, such as the make, model, style, mileage number, manufacture year, overall condition, and upgrades or modifications.
For a Title Loan on a Leased Car, What Documents Do I Need?
Besides recent photos of your vehicle, you must provide several other documents when applying for a title loan! Lenders will want to receive the following paperwork:
A Valid Government-Issued Photo I.D.
Proof of Residence
Proof of a Vehicle Title in Your Name
Proof of a Steady Income
Recent Photos of Your Vehicle
You can conveniently submit these documents via email, text, or fax when you apply for a title loan online! If you don’t have the vehicle’s title already, you can ask if you can get a title loan with the bill of sale or if you need to go to the DMV first.
Apply for a Title Loan on a Leased Car Today
You can get a title loan on a leased car as long as the vehicle has some positive equity! A car’s equity can affect the loan amount, so it’s important to know what your vehicle is worth! Generally, borrowers can receive between 25-50% of their car equity in a loan. This number can vary depending on which lender you choose, so keep that in mind! Applying for a title loan can be an excellent option for anyone who needs to access cash quickly. Start your application online with your smartphone, tablet, or PC today!