If you're looking for a personal loan and own your vehicle outright, you may wonder whether you can use your vehicle title to borrow the money you need.
You can use a qualifying lien-free vehicle title as collateral for a loan, but the product offered by Southwest Title Loans is specifically a car title loan, not a traditional unsecured personal loan.
A title loan is a secured loan because your vehicle title backs the money you borrow. Qualified Arizona borrowers may receive up to $15,000* based on the value of their vehicle and approval of the completed application.
The process is fairly straightforward, and you only need a few core items to get started.
Keep reading to learn how using a vehicle title as collateral works, what you need to qualify, and what to consider before accepting a title loan.
Can You Use a Vehicle Title to Get a Personal Loan?
You can use a vehicle title to secure a loan, but it is important to use the correct terminology.
A traditional personal loan is often unsecured, meaning you do not provide a specific asset as collateral. A car title loan is different. With a title loan, your lien-free vehicle title secures the loan. Southwest Title Loans currently offers qualified Arizona borrowers up to $15,000* based in part on the vehicle's value.
You can still use the money for a personal financial need, such as an unexpected repair or another emergency expense. But because your vehicle title serves as collateral, this is better described as a secured title loan rather than simply a personal loan.
What Do You Need for a Car Title Loan?
Showing up with only a vehicle title isn't quite enough.
Southwest Title Loans currently lists three core required items:
- >A driver's license or state-issued photo ID
- >A lien-free vehicle title in your name
- >Your vehicle for inspection
That keeps the required-item list relatively simple.
You generally don't need to gather the same long list of financial documents that may be requested for some other lending products, although all loans remain subject to the company's eligibility requirements and ability-to-repay review.
Let's look at each requirement.
Things You Need To Know About Getting A Vehicle Title Loan
Though getting all the necessary items to take out a title loan won’t be difficult, you would have to make sure that you meet the lender’s requirements beforehand. Aside from the rule that you must be over 18 to get a loan, the other requirements focus on the collateral you’ll be providing.
Here are the three main things that you would have to double-check with your vehicle title:
- Your title must be clear - A clear title is a title that does not have any liens attached to it. There should also be no existing claims or legal disputes regarding the ownership of the vehicle. If you’re still making payments on your car, you won’t be able to qualify for a title loan. However, you might want to consider taking out a registration loan in such a case.
- The title must have your name on it - Your name on the documents proves that you’re the legal owner of the vehicle. If the title isn’t in your name, you will have to get a title transfer, which only takes a few signed forms and a small fee. You can only get a vehicle title loan with a vehicle title in your name.
- It must be attached to a qualified vehicle – At Southwest Title Loans, we only accept titles attached to cars, trucks, or vans. You cannot get approved with a vehicle title for a motorcycle, boat, trailer, etc.
As long as your vehicle title meets the requirements above, you should be able to use it to secure a title loan. Getting a collateral loan has many advantages, one of which is that you don’t need to establish your creditworthiness to get approved.
Do You Need To Have A Good Credit Score?
One of the most significant advantages of personal loans in the Southwest that use your title as collateral is the fact that you don’t need to have an excellent credit score to qualify.
As title loans are secured, the lender wouldn’t focus on your credit history. Other, more important factors will be taken into consideration by the company, like the value and condition of your vehicle. Therefore, you may still be approved even if your credit score has previously prevented you from qualifying for other types of loans.
For example, let’s say you suffered a work injury that has kept you from making money for a few weeks. You miss a few payments, such as your rent, student loan debt, and credit card payments. This lowers your score, but there wasn't much you could do with your injury. You now face further medical bills and need a way to pay for them. You can get a title loan with bad credit to help.
How Does The Vehicle Title Loan Process Work?
The process will always include an in-person meeting with a verification agent. The professional’s main job is to quickly inspect your vehicle and determine the amount you qualify for. Experts will usually use industry resources like NADA Guides or Kelley Blue Book to assess the market value of the car. The vehicle’s make, model, mileage, year, and overall condition will be considered.
The agent would then propose to you a certain amount and explain everything you need to know about the terms and conditions. If you agree with the sum provided, you’ll get to sign the final papers and receive the extra cash.
Here’s a step-by-step process on how to get approved for a vehicle title loan in Arizona:
- Submit your basic information through our online inquiry form
- Discuss title loan terms with a loan specialist over the phone
- Visit an Arizona store location with your required items for verification
- Have your vehicle inspected to determine how much it’s worth and how much you can borrow
- If approved for a title loan, sign the loan documents to complete the process
- Receive your vehicle title loan cash later that day or by the next business day
If you’re looking for personal loans in the Southwest, you should definitely check out Southwest Title Loans. We are a reputable service provider with over 30 years of experience helping Arizona residents. You can borrow up to $15,00 with our title loans in less than 30 minutes. Apply today!
Get A Vehicle Title Loan – Borrow Up To $15,000 Today!
Personal loans in the Southwest, like auto title loans, can help with emergencies like medical bills, overdue rent, and home repairs. When faced with an emergency, Southwest Title Loans can help., Get our title loans today through our simple approval process – all credit types are accepted, and you get to keep your vehicle during repayment.
Ready to get started? Submit your information through our title loan form to begin the process online. After a short phone call, come to our nearest Arizona store to get approved within 30 minutes. Get access to fast emergency financing with Southwest Title Loans today!
Frequently Asked Questions
Can you use a car title to get a personal loan?
You can use a lien-free vehicle title as collateral for a secured car title loan. Southwest Title Loans offers title loans rather than a conventional unsecured personal-loan product.
Is a title loan considered a personal loan?
A title loan can provide funds for personal expenses, but it is more accurately classified as a secured loan because your vehicle title serves as collateral.
What do I need for a car title loan?
Southwest Title Loans currently lists a driver's license or state-issued ID, a lien-free vehicle title in your name, and your vehicle for inspection.
Does my vehicle have to be paid off?
Yes. You need to own the qualifying vehicle outright and have a lien-free title to use it for a title loan.
How much can I get with an Arizona title loan?
Qualified borrowers may receive up to $15,000*. Actual amounts depend on vehicle evaluation and approval of the complete application.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
