Understanding Title Loans
A title loan is a secured loan that uses your vehicle's title as collateral. Unlike traditional loans, title loans don't require a credit check, making them accessible to borrowers with less-than-perfect credit.
The Application Process
Applying for a title loan is straightforward. You'll need:
- A clear vehicle title in your name
- Government-issued ID
- Proof of income
- Vehicle insurance documentation
- Proof of residence
How Loan Amounts Are Determined
Lenders typically offer 25-50% of your vehicle's value. Factors affecting your loan amount include:
- Vehicle age and condition
- Market value
- Mileage
- Your income
Repayment Terms
Title loans usually have terms ranging from 12 to 36 months. Monthly payments include principal and interest. It's crucial to understand the terms and ensure you can make regular payments.