What Are the Qualifications & Credit Requirements for Getting a Title Loan?

car title loanFor individuals in a difficult financial situation, a title loan is often a viable alternative to traditional lenders and bank loans. Unlike most financing options, car title loans do not generally require an extensive approval process or demand a high credit rating. LoanMart, an industry leader with over a decade of experience, explains that title loans are an effective means to access funds in a short amount of time, and they offer convenient repayment options. In this article LoanMart outlines the various advantages of using their unique services.

What is a Car Title Loan?

An auto/car title loan is a secured loan where borrowers use their vehicle as collateral. Individuals allow a lender to place a lien on their car, in exchange for a specific amount of funds. Though a title loan is secured with their vehicle, borrowers can continue to drive the vehicle while paying off the loan.

What Are the Advantages of Title Loans?

According to LoanMart, because the loan process is relatively simple, individuals who qualify are often able to receive funds within 24 hours. Lenders are also often able to offer interest rates that are more competitive than payday loans, which can help minimize the stress of repayment. Other benefits of LoanMart title loans include:

♦  No charges when you pay off your loan ahead of time
♦  Multiple options for receiving your funds (wire transfer or in-store pick-up)
♦  Potentially borrow more than is offered by other types of loans: $2,510 to $50,000 (depending on vehicle value and the borrower’s ability to repay the loan)

There are also multiple payment options available:

♦  By mail
♦  By phone
♦  Via a checking account with automatic electronic payments
♦  Online payments
♦  Using their mobile app
♦  In person at hundreds of partner locations

What is the Total Cost of a Title Loan?

The cost of a title loan will depend on your state of residence, the terms of your specific loan, and of course the amount you borrow. You should be prepared to repay the borrowed amount, plus interest. However, because a car title loan is secure – meaning the lender has hold of an asset in the event of a default- LoanMart is generally able to charge significantly lower interest rates than an unsecured payday loan.

Proof of Verifiable Income

Before you are approved for a loan from LoanMart, you must be able to demonstrate that you receive regular income that is deemed sufficient for repayment of the loan, through your job, pension, etc. This is a necessary part of receiving funding, since lenders want to ensure you will be able to pay back the full amount due.

Proof of Vehicle Ownership and Other Documentation

Title loan borrowers need to have a vehicle in their name to use as collateral. The vehicle you own should be paid-off or close to being paid-off.

At a minimum, these are the documents that an applicant will need to provide to LoanMart:

♦  A vehicle title for a qualifying car, in your name
♦  A government-issued photo ID
♦  Proof of residency, such as a utility bill
♦  Several pictures or a video of the vehicle

Trusting Industry Professionals

LoanMart encourages individuals currently in a financial bind to contact them to discuss loan options. They make the process easy to understand and have their customers best interest in mind!

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