What Is A Title Loan?
March 2, 2022 | Emma Frost
When you don’t have great credit and need to take out a loan to handle emergency expenses, you will find your options could be limited. Opting to take out a secured loan such as a title loan is an option available to vehicle owners who need cash fast. If you have never heard of a title loan, you may be wondering what is a title loan and how it works. Find out what it is and more below!
What Does A Title Loan Even Mean?
So, what is a title loan? Well, a title loan is a secured, short-term loan that provides you with a small amount of much-needed, fast cash based on the condition of your vehicle. A secured loan is a loan that uses an asset as collateral to guarantee the lender that they can make the money they lend back. In the case of Arizona title loans, the asset used to secure the loan is your vehicle title.
This means that, to receive the funds, you will need to temporarily hand over the title of the vehicle to us at Southwest Title Loans as collateral. This can sound a bit alarming. However, if you have every intention of and feel secure that you can pay back the loan by the agreed-upon date, then you will get the title to your vehicle back when the loan is paid back in full.
Vehicle Title Must Be Lien-Free And Under Your Name
The only way for you to qualify for the title loan with us is if the title to your vehicle is lien-free. If you own a vehicle but still need to make payments on it and have a lien or judgment on your title, it won’t be eligible to use for a title loan at Southwest Title Loans.
Another thing is that if the vehicle title you are looking to use is not under your name, you will not be able to use it. The name on the title must match the name of the applicant. If you have a vehicle you wish to use, the title needs to be transferred under your name by visiting the DMV before coming to see us.
You Can Keep Your Vehicle For The Loan Duration
If you are wondering what is a title loan and if you can keep your vehicle, the great thing about Arizona title loans is that you can. When you use your vehicle’s title as collateral, you don’t lose access to the use of our vehicle. It is only the vehicle title that is temporarily handed over to us. Once you get approved, you will be able to drive off in the vehicle and go about your days as normal.
Title Loans Can Help You Meet Financial Emergency Needs
As title loans are secured loans, we recommend you keep them only as an option to utilize when you are faced with a financial emergency. For emergencies that can’t wait, a title loan can provide you with funds faster than other types of loans. The main reason for this is that title loans are easy to get and provide you with funds fast.
The simplicity of applying here at Southwest Title Loans allows you the ability to find out if you’ve been approved the same day you apply. You can even receive funds by the same day or the next business day. Here are a few emergencies in which a title loan can help you out:
- Rent or mortgage.
- Auto repairs.
- Medical bills.
- Utility bills.
- Home repairs.
- Emergency travel.
Title Loans Don’t Require Excellent Credit
Another thing you should know when you are wondering what is a title loan is how credit can affect your chances of qualifying. Obtaining a title loan does not require that you have outstanding credit. This is a result of it being a secured loan.
In some cases and depending on the loan amount you are qualified for, we may run a credit check, but this does not mean you will automatically be disqualified if your credit is less than great. This makes title loans an option worth considering if you have poor credit but need money fast.
Where To Get Arizona Title Loans
If you are wondering what is a title loan and you discover it is what you need, Southwest Title Loans can assist you with our simple and quick process. Just contact a Southwest Title Loans facility by filling out an online form or calling the store directly.
If you choose to fill out an online form, a loan representative will contact you via phone shortly. When our loan representative calls, we will set up an appointment for you to either come in or have us come to you. We will also inform you to bring the following three items to their store so you can begin the in-person application:
- Driver’s license or state-issued identification.
- Lien-free title to your vehicle.
- Your vehicle for inspection.
Whether we come to you or you come to the nearest Southwest title loan location, when you bring the required items, a loan representative will verify your documents and perform a quick inspection of your vehicle. The inspection will determine the loan amount you can qualify for.
They will then let you know if you’ve been approved. If you do get approved, you can complete the final paperwork and receive your funds the same day or the following business day. With our Arizona title loans, you can get a title loan amount of up to $15,000!
Get Your Funds Today
The next time you have emergency expenses you cannot handle alone, you have options to turn to – even if you have poor credit. So don’t stress about how to come up with emergency funds quickly. Now that you know what is a title loan and where to get it, submit an online form today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.