What Factors Contribute to the Loan Amount I’d Receive for a Title Loan on My Car
A car title loan is a secured loan designed to help borrowers in an emergency. With a title loan, you can secure your cash through collateral, which in this case, is the title to your vehicle. That means you could still qualify for an auto title loan despite your credit history or financial background!
You could be at ease knowing that through this method, the approval process for a title loan can be much more flexible than other loan options. But if you need a certain amount of money to cover your emergency expenses, you may wonder– “How much cash can I get for a title loan on my vehicle?” you can find your answer with LoanMart today.
Your state laws and the lender will set the minimum or maximum loan amount with a car title loan. In fact, with most title loans, the average amount a person could borrow is up to 50% of their car’s available equity; that means you could earn anywhere from $1,000-$10,000! Yet, the cash total you’d obtain is dependent on the following factors:
- A Qualifying Vehicle with Enough Positive Equity
- The Ability to Pay Off Auto Title Loans
Be aware that those same components are essential if you want to earn a significant loan! The more value your car has, the more you could potentially acquire! But that’s only possible if you have the income to support that amount. So if you want enough cash to cover your costs, you must maintain your vehicle in good condition.
What if you don’t know your car’s current equity? That’s fine! You could use different resources, like Kelley Blue Book, to find an estimate. After you acquire it, you can determine if your vehicle’s equity and your income can justify your desired loan amount.
Will A Credit Score Determine If I Can Qualify For A Car Title Loan?
The answer to this question is simple: you don’t need perfect credit to apply for an auto title loan. As you may have read, since title loans are secured through collateral, the approval process can be flexible for people with different credit histories.
Instead of solely relying on your credit score, title loan lenders focus more on the value of your collateral and income level. However, it’s important to note that a lender will consider your credit.
If a title loan lender decides to evaluate your credit, you will go through what is known as a hard inquiry check. This check happens when a lender initially approves you for a loan, and you agree to proceed with the loan agreement.
It usually affects your credit score, but time and effort on your part can reduce the impact. But even if you don’t feel confident about your credit status, you could still apply for a car title loan!
What Types Of Cars Affect How Much I Can Get For A Title Loan On My Car?
It is common knowledge that older cars may not have as much value as newer ones. Typically, older cars can have more wear and tear, which means they may not be worth much on the market.
The market value of a vehicle is a significant factor in determining equity, so you may think that you cannot qualify for a car title loan if your car isn’t new. After all, eligibility for car title loans is based on two major factors- one of which is your vehicle’s value!
However, many different types of makes and models can qualify for a car title loan! To qualify, a car must have a certain amount of equity to borrow from. But that does not mean that your car needs to be brand new! It just means that your car needs to be in decent condition and have the right amount of equity.
Even if you aren’t sure about the value of your vehicle, don’t sweat it. That’s what title loan agents are there for! They are there to guide you through every step of the approval process and help you figure out how much your vehicle is worth, and if you can qualify for a car title loan.
RVs, motorcycles, and other types of vehicles could even qualify for a car title loan! So, to figure out how much you can get for a title loan on your car, just ask a title loan agent over the phone or online. Call a ChoiceCash title loan agent at 855-914-2945 today!