Title loans are a popular part of the quick-loan family. The quick-loan family is a group of loans that consumers can get in less than 24 hours of time. The family of loans includes products such as payday loans and installment loans. Title loans are different from payday loans in many ways, but they have also some similarities. All consumers who consider taking a title loan question the loan approval criteria. The following is some information on what matters and what doesn’t matter for a title loan:
The Title Loan: Does Credit Score Matter?
The first question that a prospective title loan borrower may ask is whether credit score matters. As with other quick-cash loans, credit score does not usually make a difference to a title lender. Title lenders base their decisions on the value of the consumer’s vehicle. Such lenders are not concerned with what a prospective borrower has done in the past. Title lenders use the vehicle’s title as assurance that the borrower will repay the advance. They place a lien on the vehicle so that they can repossess the vehicle if such becomes a necessary act.
Does Income Matter?
Some consumers wonder if their income matters when it comes to getting a title loan. While income does play a small part in a title loan approval, it does not play as much of a part as it does in a payday loan approval. The lender ultimately knows that it can receive its money back by way of vehicle repossession if necessary. Still, the lender will have some criteria when it comes to income. For example, a lender may want an applicant to earn at least $1,000 a month before applying for assistance.
What Matters for a Title Loan?
The biggest determining factor for a title loan is the vehicle. Title lenders will offer a loan on any working vehicle, regardless of the way it looks. A consumer can get a loan on a vehicle that is 30 years old or a vehicle that is brand new as long as the vehicle runs.
How to Get a Title Loan
To obtain a title loan, the interested person must complete a short form or make a phone call to a participating lender. Someone will answer the phone and ask the consumer questions about the make, year, model and mileage of the vehicle. The representative will make an offer after gathering the information. The consumer can then sign a contract for the amount that the company offers to lend him or her. The title lender will issue the funds shortly thereafter. The lender will most likely expect the repayment within 30 days from the loan date.