How to Get a Car Title Loan
March 13, 2020 | Mason Roberts
If you’re looking to take out a title loan but don’t know where to start, you’re in the right place. The process of getting a car title loan is easy and can be thoroughly explained in just five simple steps.
- Verify you meet the requirements
- Find a lender
- Apply and get your vehicle inspected
- Sign a title agreement
- Get your loan
So let’s get started, the solution to your financial troubles awaits!
1. Verify you meet the requirements
The eligibility requirements for receiving a car title loan are relatively simple. To apply, you must:
- Have a valid driver’s license
- Own a car or truck with a lien-free Arizona title
- Have your name on the title of the vehicle
- Own a vehicle that’s fully paid off with no current financing
- Be employed or receive regular income via Social Security, unemployment, disability, etc.
- Be willing to have the vehicle inspected
2. Find a lender
Picking a lender for your car title loan is an important step. You’ll want to make sure you’re working with a reliable and problem-free company to secure your loan.
Each lender will have different requirements for obtaining your loan—some may require proof of insurance or a credit check in addition to the aforementioned requirements. Therefore, it’s important to make sure you meet the requirements for your selected lender before beginning their borrowing process.
Another factor to consider when selecting a lender is interest rates. Interest rates can vary greatly from lender to lender, so be sure to read the fine print carefully before signing.
If you’re looking for a company you can trust and that has award-winning service, Southwest Title Loans is a great lender to choose. We’ve been working in Arizona since 2000 and have been a leader in the title loans industry since. We have competetive rates and deliver fast and simple loans for those unexpected expenses that are bound to happen.
3. Apply and get your vehicle inspected
Once you’ve selected a lender, your next step is to submit a quick form online. After your application is submitted, a loan specialist will call you to start the application process over the phone.
The amount of your available loan is based on the value of your car. Because of this, your vehicle must be thoroughly inspected and evaluated to gauge its market value.
Typically, lenders find the market value of your vehicle using Kelley Blue Book and will typically offer up to half of that value. It’s up to you to decide how much of the offered loan amount to accept.
4. Sign a title agreement
After you’ve accepted a loan amount, the next step is to go through the fine print and finalize the agreement. Together, the loan specialists and you will determine:
- Interest rate
- Payment schedule
Depending on the state you live in, interest rates may vary. Typically, they’re charged on a monthly basis throughout your payment schedule. Your payment schedule depends on how much time you need paying back your loan.
At Southwest Title Loans, we don’t charge any fees for customers who want to pay their balance back in full before the end of their schedule.
5. Get your loan
Once you’ve completed steps 1-4, you’re all set! This entire process at Southwest Title Loans can take as little as 30 minutes and can deliver loans in amounts ranging from $300-$15,000. Your loan will typically come in the form of a company check. However, we also offer the option of direct deposit and wire transfer.
Title loans vs. traditional loans: How do they differ?
After going over the simple steps of getting a car title loan, it’s important to determine whether a title loan is right for you. Here, we’ll cover this topic by addressing the difference between a traditional loan and title loan.
A car title loan is a short-term loan that is given in exchange for the title of your car which is used as collateral.
A title loan is different from a traditional loan in many ways. The primary difference is that a title loan isn’t based solely on a credit score. Instead, the loan is based on whether you have a vehicle, and how much that vehicle is worth. In addition, title loans are usually acquired on the same day you apply for them. Sometimes this process can take as little as 30 minutes, whereas a traditional bank’s process can take up to several months.
Taking out a car title loan is faster, simpler, and easier than taking out a traditional loan from your bank. As long as you own a vehicle and your name is on the title, you’re on your way to being eligible for a title loan in your city.
Is a title loan right for me?
Individuals take out title loans for a variety of reasons. Our customers range from small business owners who need to cover unexpected equipment costs and payroll, to self-employed individuals who need a loan between client payments, to homeowners who need to cover emergency costs, to anything and everything in between.
Regardless of your unique situation, a title loan may be the right option if you:
- Need a loan quickly
- Have a less than perfect credit score
- Want to avoid the tedious traditional loan process
If a title loan sounds like a good option for you, follow along as we take you through five simple steps of getting a car title loan.
How you can get started
Now that you know what the process is like for acquiring a car title loan, it’s time to get started. Give us a call at 623.266.9163, fill out our short online form, or stop by one of our store locations listed below to begin your title loan process.