If you need cash – fast – a title loan can be just the ticket to get you over the hump. After all, all you basically need is a vehicle in your name and clear title, plus proof of income. The process is fast and easy.
You’re a resident of the Lone Star State, so here’s how to qualify for a title loan in Texas.
Explain Vehicle Title Loan
This is a short-term loan that’s usually due in 30 days or less and is secured by your vehicle. So, you must make your payments as agreed or risk losing said vehicle to seizure.
Although your vehicle – car, truck, RV, boat, or motorcycle – will serve as collateral, you can keep using it as you normally would while making payments. This is a big title loan feature and is an advantage over traditional banks. All you must do is relinquish your title to the lender until the loan is paid off.
Is Good Credit Required?
No. And that is another popular title loan feature. To get such a loan, you don’t need good credit or any credit at all, really. Some lenders will pull your credit history, but they won’t focus on it. They have your vehicle as collateral.
By the way, making consistent, on-time loan payments can wind up helping your credit score. Note that if you find it difficult to make your payments, some title companies will permit you to refinance your title loan. They generally want to do every possible to avoid repossessing your vehicle.
How Must I Use Loan Funds?
That’s up to you. Whether for a wedding or funeral, home improvement, travel, vet or medical bills, debt consolidation, or some other reason, there are no rules regarding usage.
How Do I Apply?
For Texas car title loans, you can apply online, which expedites the whole process. You can also apply over the phone. In fact, once you do so, you can expect a decision the same day. Once you’re approved, you can have funds in hand by the next business day.
How Much Can I Borrow?
That depends on factors such as laws in the state in which the lender is located, and the lenders’ discretion. However, loans tend to range between $100 and $10,000; the average is about $1,000.
In general, you can expect to get between 25 percent and 50 percent of your vehicle’s value, which the lender will determine based on its make, model, age, overall condition, and mileage. Any alterations or modifications will also be factored in, as may the trim level.
Title Loans in Texas
States regulate the title loan industry, so as such, there are laws specific to Texas. For instance, borrowers must be at least 18 years old and own a vehicle that’s registered in the state.
They also must prove they can afford loan payments. If you’re employed, you’ll need to submit pay stubs or bank statements, etc. If you don’t have a job but you do have an alternate form of income – from rental properties, retirement funds, Social Security, worker’s compensation, disability, or a settlement, for example – that will be considered as well.
You’ll also need to submit with your application recent, quality photos of the vehicle you’re collateralizing from all four angles, and in natural light (not in the garage). Be sure to take shots of the hood and rear as well, in addition to of the odometer and vehicle identification number.
As you can see, it’s easy to qualify for a title loan in Texas. Just be 100 percent certain you can repay the loan as agreed.