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If you need to organize a project but don’t have the available funds, taking an auto title loan is recommended. However, there may be questions you’d need to ask before approaching an accredited lender to ask for an auto title loan.
We take our time to compile a comprehensive FAQ for auto title loans, so read on.
What Is an Auto Title Loan?
An auto title loan or car title loan is a form of loan where your car is submitted as collateral. In this case, the lender requests your car’s title certificate or pink slip in exchange for the loan requested. The documents will be handed back to the borrower when the loan is repaid completely.
This form of loan is designed for you to take care of urgent personal and business needs and repay it when your allowances and income arrives.
How Does an Auto Title Loan Work?
The process is pretty simple. You search for a certified lender in your city and apply for a title loan. On reviewing your application request for the title of your car, the lender puts a lien on it. When you repay the loan with interest, the lender hands over the car's title.
Your car is used explicitly as collateral for an auto title loan.
How Much Can I Borrow With an Auto Title Loan?
It mainly depends on what you need the money for. Typically, you can borrow as much as $5,000 from a lender while your car is used as collateral. The value of your car must be higher than the amount borrowed.
Typically, you can borrow as much as 25 to 50% of your car's current value.
Can I Get an Auto Title Loan Without a Job?
One of the basic requirements of applying for an auto title loan is having a car to pledge as collateral. It doesn’t matter whether you are actively employed or not. But it’s recommended to have a stream of income to repay the loan if approved.
Else, you might run the risk of losing your car.
Where Can I Get an Auto Title Loan?
There are hundreds of accredited lenders in your city waiting to grant your request for a title loan. Here at Bunny Lender, all you have to do is input your city in the search box, and it will reveal a long list of lenders near you.
You can review their pre-qualification and eligibility status before applying to any of them.
Can I Get an Auto Title Loan While Still Making Payments for My Car?
You must own your car outright or have a lien-free title for auto title loans to be approved. Most lenders may not be able to approve your request if you’ve not outrightly paid for the car you own.
However, there may be exceptions. All you need to do is look out for specific criteria on each lender’s brochure or website. More so, you can opt for alternative loans.
How Long Does It Take To Get Approved for an Auto Title Loan?
Title loans are swift to process if you’ve got all the documents required. You can get approved within days when you apply for a title loan.
What Kind of Documentation Will Be Required to Get Approved?
The relevant documents that will needed in applying for an auto title loan include:
- Phone bills.
- Valid driver’s license
- Proof of income
- Car title or pink slip
Will There Be a Hard Check on My Account?
The lender will not conduct a hard check on your account when applying for an auto title loan. This is because the loan is secured with your car, so a check won’t be necessary.
Does the Car Title Have to Be In My Name?
For your title loan to be approved by a lender, the car's title submitted must be in your name. You cannot submit the title of a car that doesn’t bear your real name. A lender will have to crosscheck the name of your valid driver’s license with the name on the car’s title.
If it doesn’t match, your request will be declined.
Are There Restrictions on How I Spend the Loaned Amount?
When you apply for a loan and get approved, you can use it anyhow you please. You can use it to purchase items, foot expenses, pay for a service, and many other uses.
Can I Get a Loan With a Bad Credit?
Your credit doesn’t matter when you apply for an auto title loan. Your car’s title and value are the only essential criteria your lender considers before approving a particular loan.
So, you can always apply for an auto title loan even if you have bad credit.
Can I Apply for an Auto Title if I Have a Medical Condition?
Your medical condition doesn’t matter and will not affect the approval process for applying for a title loan. All you need to do is submit proof of income to the lender with another relevant document, and you’d get approved.
Why Should I Apply for an Auto Title Loan?
Applying for a car title loan is much faster than other loans. Your lender will not have to run background checks on your credit, require plenty of paperwork and other requirements.
Because this loan is secured, the lender will not run any risk. So, they’d quickly approve your request.
What Is a Lien-Free Car Title?
A lien-free car title is a car outrightly owned by a person. When you apply for a car title loan, the lender places a lien on the car's title. This gesture is an indication that the car is used as collateral pending when complete repayments are made.
When you’ve finished repaying the loan, the lender will mail your car’s title back to you, and it becomes lien-free once again.
What Happens if I Default on Payments?
If you default on your end of the bargain, the lender will repossess your car and may sell it off to recover their loan. Thus, it is necessary to make prompt payments to prevent such occurrences.
Final Thoughts
It is essential to review these questions before applying for Auto Title Loans. Bunny Lender connects you with hundreds of accredited lenders in your city willing to approve your auto title loan.
To get started, input your city in the provided search box, and we will automatically provide you with a long list of lenders.
