With a motorcycle or car title loan, you borrow the money you need against the equity you have in your car or motorcycle. Whether you’ve paid off your car loan or paid cash for your car, the value of that car is equity. With a clean title in hand, you can borrow money against that equity from a title loan company. You borrow the money under the agreement that you will pay the money back by a specific date. If you fail to pay it back or make arrangements to extend the due date, the title loan company takes possession of your car or motorcycle.
What Documentation is Needed to Get a Title Loan?
There may be minor differences between companies, but typically you need a clean title to your car or motorcycle, a valid government photo ID (such as a driver’s license or passport), and a recent paystub.
Will My Credit Score Keep Me From Qualifying for a Title Loan?
Poor credit scores are no issue! People with poor credit can qualify for a motorcycle or car title loan. In fact, if you’re young and haven’t built up any credit yet, you can still get a title loan.
If I’m on Retirement or Disability, Can I Get a Title Loan?
No matter where your income comes from, you can get a title loan. Instead of providing a recent paystub, simply bring your clean title and a copy of your recent social security, pension, or disability check.
Can I Have More Than One Title Loan?
Many states have laws banning multiple cash advance or title loans, but you can ask about having your current title loan refinanced.
What Kinds of Title Loans Are Available?
Due to the nature of title loans, the loan requires a title be given as collateral. Therefore, the two main title loans are car title loans and motorcycle title loans. In both case, you have a clean title and borrow money against the value of your car or motorcycle. You can continue to use your vehicle during the span of the loan. There are also car title pawns and motorcycle title pawns. They are very similar except that with a pawn your vehicle or motorcycle is stored in a safe location until you repay the loan.
If you do not own a car or motorcycle, there are still loans you may qualify for. A signature loan allows you to borrow the money you need for a short amount of time. You’ll have that money within a business day in most cases. The other option is a personal loan, which is similar. With both of these loan types, you must have a government-issued photo ID and recent paystub or bank statement.
Will I Be Penalized for Paying the Title Loan Back Early?
No. Many title loan companies actually prefer that clients pay back their title loans early!
What Happens When the Payment is Due?
When your payment is due, head to the location to make your payment. Most title loan companies will inside on a money order, certified check, or cash. You may be able to pay online. Make sure you get a receipt. Your title is given back to you. If you make payments online, you will have to wait for the title to be returned to you in the mail.
