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What Is A Title Loan On A Car And How Can It Help My Finances?

Wondering ‘What is a title loan on a car?’ Such loans are a relatively popular way to get access to a part of the vehicle’s cash value without actually selling the car. People typically use the amount to handle financial emergencies and then pay back the loan over a set period of time.

What will you need to apply for a title loan and how much money can you qualify for? You’ll find out these answers and more below.

What Is A Title Loan On A Car?

A title loan is a short-term loan that uses your car title as collateral. In exchange for giving the lender the title to your vehicle, you will be able to borrow between 25% and 50% of the car’s value.

Though there are lenders who might require you to bring in quite a few documents, including proof of insurance and proof of residence, the overall application process is quite simple.

Meet up with a company representative so that a loan expert has the chance to inspect your car and determine the amount that you can qualify for, and, if approved, receive your cash. That's basically it.

By the way, you would still be allowed to continue driving the car while repaying the loan.

 What is a car title loan and how can it improve my finances?" against a backdrop of two hands, one holding a sack of money.

When To Consider A Title Loan?

Once some people find out ‘what is a title loan on a car’, they might start thinking of it as ‘easy money’. But it is definitely not something that you would want to take out each time you need to go on a shopping spree, for example. Such loans are also not designed for business purposes.

The only time this type of loan should come in handy is when you’re facing a financial emergency. For example, if you don’t have enough money in your reserve fund to take care of an urgent medical bill, an important home repair, or an upcoming utility bill, going for a title loan might then become a valid option.

Instead of carrying the weight of the emergency on your shoulders, you’d be able to take care of it with the loan amount you qualify to borrow, and then finally get back to your regular life.

How To Apply For A Title Loan

Now that you know ‘what is a title loan on a car’, it’s time to find out how to apply for one. How complicated or, on the contrary, simple the application process would be, will depend on the lender that you decide to do business with.

Traditional lenders might require you to gather dozens of documents. And it may take the financial institutions days or even weeks to make a loan decision. Thankfully, that is never the case with Southwest Title Loans.

The company representatives understand that you might not be able to wait for days, that’s why the whole process of applying for a title loan with this lender is straightforward and fast. To get started all you need to do is:

  1. Fill out a quick online form with some basic information.
  2. Receive a call from a friendly company representative. During the conversation, the representative will explain how the process works and you will set up a meeting with a verification agent to complete your application.
  3. You can choose to either come to visit a store location or meet up with the agent at a location of your choice. In any case, you would have to prepare the required items for the meeting.
  4. The verification agent will quickly go through your documents and inspect the vehicle you are using as collateral for your loan. If you qualify and you agree with the amount and the terms of the agreement, you will be asked to sign a few papers. Overall, this meeting could last about 30 minutes.
  5. That’s it! Once the application process has been finalized, and you are approved, you can receive the money the following business day or, in some cases, even the very same day.

 A black calculator on the screen, with the text "Get Help Here" magnified by a glass, against a backdrop of documents.

What Documents Are You Going To Need?

To apply for a title loan offered by Southwest Title Loans, all you’re going to need is your photo ID (or driver’s license), a lien-free title, and the actual vehicle.

The term ‘lien-free’ means that you own the car outright and that the vehicle has been fully paid off.

How Much Can You Qualify For?

You can apply for up to $15,000. The exact amount you qualify for would depend on the value of your car and your ability to repay the loan amount.

Get Your Title Loan Today!

So, what is a title loan on a car? It is a convenient way to get emergency cash for those who own a vehicle. And with Southwest Title Loans, the whole title loan process would be extremely fast and simple.

In fact, you wouldn’t even have to drive to the store, if you’d prefer not to, a loan representative will come to you. Ready to schedule a meeting with a verification agent and find out how much you can qualify for? Simply fill out the loan request form or call to get started.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.

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