How Do Title Loans Work?
If you plan on using your vehicle as collateral for a car title loan, you might be wondering, âHow do title loans work?â Simply put, a title loan is a convenient and secured loan option that allows applicants to use their vehicle title as collateral for the loan and obtain fast cash. Through a title loan, you can borrow against the value of your vehicle and use your loan proceeds to handle a plethora of financial issues. Typically, you will be able to access up to 50% of your vehicleâs value through a title loan if you are able to submit the correct documents and meet the necessary criteria to obtain loan approval.1
Whether you are applying for a title loan online or at a storefront location, as soon as the loan is funded, the title lender will place a lien on your carâs title. The lien will remain on your vehicleâs title until youâve completely repaid the loan, but that doesnât mean you will automatically lose access to your vehicle. If you pay your title loan on time each month, you can continue to drive your car and have access to it during the repayment process.1 After your title loan is paid in full, the title lender will release the lien from your title, and it may take up to 15 business days or more to get your title back in the mail, depending on your state of residence.
It is incredibly important to prioritize your title loan payments each month. Although many title lenders prefer to avoid repossessing your vehicle, your asset could potentially be seized by the title lender if you default on your loan.
Do you have questions about how to get a title loan? Visit the FAQ page or call LoanMart at 855-422-7412 to learn more about how title loans work.1
Do I Need Good Credit to Apply for a Title Loan?
Without a strong credit history, you may find it difficult to qualify for an unsecured loan option like a personal loan. Since unsecured loans donât require the applicant to use an asset as collateral in order to secure the loan, the applicantâs credit history will become the main focus of the loan application. If you have a poor credit score, many lenders will see you as a risk to lend money to, which is why it will be difficult for you to obtain loan approval for an unsecured loan.
However, with a car title loan, your credit score isnât the primary focus of your application! Instead, these two factors will matter the most during your loan inquiry:1
- The Current Value of Your Vehicle
- Your Ability to Repay the Car Title Loan
These characteristics will predominately affect your loan amount and eligibility for a car title loan serviced by LoanMart. But what if you donât know the current value of your vehicle? Thatâs okay! You can use LoanMartâs online title loan calculator to learn more about the value of your car or truck and get a loan quote with no obligation today!1 All you will need to do is enter the necessary details about your vehicle into the online form to receive an estimate in just a few minutes.3
How to Get a Title Loan Online?
Looking to learn more about how to get a title loan online? If you prefer the convenience of an online application, you might be asking yourself one important question: How do online title loans work? Applying for an online title loan can be straightforward and convenient, but you must meet a few initial requirements in order to obtain loan approval.1
Take a look at the application criteria you must meet to obtain an auto title loan serviced by LoanMart:1
- Possess a Title to a Qualifying Car, Truck, or SUV in Your Name
- Be Able to Prove you Have Income Sufficient to Cover Your Monthly Title Loan Payments
- Be of Legal Age to Apply for a Title Loan in Your Current State of Residence
In addition to meeting these initial requirements, you will be asked to submit a few important documents in order to verify all of your information. Here is a list of the paperwork you must upload online during your loan application:1
- A Car Title in Your Name
- Proof of Income
- Proof of Current Residence
- A Few References (Could be Professional, Personal, or Both)
- Valid, Government-Issued Photo ID
- Recent and Clear Images of Your Vehicle
If you do not want to upload your documents online, you can take advantage of the other convenient submission methods by sending your documents to a LoanMart title loan agent through email or text message.
Your documents must be verified for completeness before you can move forward with your application. Once the documents have been verified, you will receive an electronic contract to review and sign. Keep in mind that you will be asked to send your vehicle title through the mail using a pre-paid label if you own your vehicle outright. However, that doesnât mean you need to own your car outright to apply for a title loan! If you are still making payments on your car, you may need to complete a payoff authorization form so your new title loan lender can pay off your existing lender.
If youâre dealing with a difficult financial situation, donât hesitate to apply for the emergency money you need through a car title loan serviced by LoanMart. If you meet the initial criteria and provide the correct documents, you can access fast cash, competitive interest rates, and zero hidden fees!1 5
How Do Title Pawns Work?
If youâre searching for a convenient way to access emergency cash, you may have heard of another loan option known as a title pawn.
Although a title pawn works similarly to a title loan and allows you to use your car as collateral for fast cash, they are not exactly the same. You can pawn your car title at a pawnshop with a pawnbroker or apply for a title pawn online with a title pawn lender. If youâre eligible for an auto title loan, you can retain access to your car throughout the duration of the loan, but you are required to keep up with your monthly payments. However, if you do not work with an online title pawn lender and choose to pawn your vehicle at a pawnshop, the pawnbroker will usually keep your car in their designated storage yard. The vehicle will remain in the storage yard while you continue to make payments on your loan, and you will not have any access to it until the loan is completely paid off.
If a title pawn does not sound like the right fit for you, consider applying for a title loan instead! Click here to apply for a title loan serviced by LoanMart, or dial 855-422-7412 to get in touch with a title loan representative! If you qualify for funding, you can access competitive interest rates and obtain emergency cash in as little as 24 hours.1 3
How Do Auto Title Loans Affect Your Credit?
When you sign a loan contract, you agree to the terms written by the lender in the agreement. Defaulting on your title loan is considered a breach of contract, and that usually has serious consequences – including your credit score decreasing!
One of the potential consequences of defaulting on your title loan is vehicle repossession, which will leave a negative mark on your credit report for seven years. If you want to avoid the potential consequences of loan default, it is important to do your due diligence and create a budget that prioritizes your monthly payments. It is generally recommended to set up automatic payments from your bank account so you can stay on top of your installments each month! But donât hesitate to contact your lender or loan servicer if youâre struggling with your loan payments. If you properly communicate your financial hardship before you default on your loan, you can discuss your options with your lender and try to refinance your existing title loan to potentially obtain different loan terms!1
Do you have questions about car title loans affecting your credit? Talk to a LoanMart title loan agent today at 855-422-7412! One of the perks of applying for a title loan serviced by LoanMart is that title loan representatives are available six days a week for extended hours to answer your questions and take your call!
What is the Maximum Amount You Can Borrow on a Car Title Loan?
Depending on the applicable lending laws in your state, your vehicleâs value, and your income, you could potentially receive up to $15,000 if you are eligible for a title loan!1
Dial 855-422-7412 or click here if youâre curious about how much money you could get through an auto title loan serviced by LoanMart.1
Where Can I Apply for a Title Loan Online?
Now that you know how title loans work, you may want to know more about the application process for a title loan! Fortunately, if you are applying for an auto title loan serviced by LoanMart, you can start your title loan application from the comfort of your home using your smartphone, laptop, or computer.1
Take a closer look at the three basic steps you must complete to receive emergency cash through a car title loan serviced by LoanMart:1 3
- Apply Online or Over the Phone: You have two options to begin your loan application for a title loan serviced by LoanMart. You can submit a brief inquiry form online or dial 855-422-7412 to speak directly to a trained title loan agent.
- Submit Your Documents: If you receive initial approval for a title loan, you must submit the required documents so they can be verified for completeness.
- Find Out if You Qualify for Emergency Funding: If you are eligible for a title loan and sign your electronic contract, you can choose between one of the following ways to collect your loan proceeds:1
- Direct Deposit to Your Bank Account
- A Check in the Mail
- Pick Up Your Cash at Any Participating Money Transfer Location Near You
Find out if your vehicle and income are eligible for the money you need to handle your financial issues! If you qualify for a title loan serviced by LoanMart, you can access quick funding in as little as 24 hours! Click here or dial 855-422-7412 to apply for a title loan today.1 3
Getting a title loan is easy!
We have streamlined the process to ensure your title loan experience is fast and enjoyable. The whole process is only 3 steps and we can have money in your hands as fast as today! A car title loan is easy to qualify for because you are using the money you have already put in your vehicle to secure a loan today.
What is an Auto Title Loan?
An auto title loan is secured with your car. LoanMart is added to your car's title, but you can keep driving the car while repaying your loan (same as a bank does when you refinance the purchase of a car).
Thousands of people choose auto title loans because theyâre faster than other ways of borrowing. Itâs possible to have money in your hands in as little as one business day, and in some cases the SAME day1. These loans are also easier to get than others — you donât even need a great credit score.
Step 1: Click, Call or Visit
There are three easy ways you can apply for an Auto Title Loan:
- Submit your info online by filling out this form on your computer, tablet or smartphone
- Give us a call at 855-422-7412
- Visit a participating store
It is totally free to apply and takes just a few minutes. In less than an hour, we can let you know whether you are approved, and the amount that we can lend to you1. If you have any questions, our loan specialists are here to help.
Step 2: Submit your Documents
We will need a few things from you. But don't worry, we won't make you climb mountains and cross the Seven Seas. We typically only need the documents listed below.
- A car title in your name for a qualifying car
- A government-issued photo ID, such as a driverâs license
- Proof of income showing your ability to repay the loan (paycheck stubs, invoices, bank account statements, etc.)
- Proof of residence (a piece of recent mail like a utility bill will work)
Our agents are here if you need help submitting these documents. You can fax or email them, or use your smartphone or tablet to snap pictures and send.
Step 3: Get Your Money1
After we get your documents, you sign the loan paperwork and choose how to get paid — electronically, with a check, or by visiting one of the participating store locations in your neighborhood. You can often pick up your funds at any local participating money transfer location.
Why Choose LoanMart?
LoanMart has grown as a company to be able to offer things that the others can't — like the most competitive rates and online account access. We even have our own DMV processing team, so you don't have to waste time waiting in long lines. We will do all we can to help you get the money you need quickly.
For Title Loan Payment Locations in your city, please
choose one of the following links:
Title Loan Payments in Los Angeles
Title Loan Payments in San Diego
Picking the Right Car
Choosing LoanMart is a great first step in paying off your urgent expenses. Youâll get the money and get to keep driving your car while easily making your loan payments. You can have peace of mind knowing we are only holding on to your vehicle's title. The next step is choosing which car we will work with.
Why your Vehicle may be your Best Loan Option
If you already own a car, it just makes sense. Take advantage of the value on your vehicle. You bought a car and now you have a valuable asset that you can use to get a fast loan. Even if you have some money left on your car payment, LoanMart wonât let that hold you back.
What cars will qualify?
We are usually able to work with a wide variety of cars. The carâs condition and age matter most when it comes to how much we might be able to lend to you. Cars that typically receive the most with LoanMart's auto title loans are newer, have limited damage and are connected to a clear car title. A slightly used 2006 Honda Civic, for example, would probably get you more than a 1986 Toyota that has been in multiple accidents. We want to make sure that we are able to provide you with a fair and respectable loan amount no matter what kind of car you own.
If you have any questions about your car or need some assistance during the submission process, our loan specialists are standing by to help you: call us or visit our FAQ page.
Vehicles you might not have thought of
Unconventional rides (like motorcycles, trucks or classic cars) can qualify for an auto title loan with LoanMart too. We recommend that you call us directly directly to better judge the equity of your unique vehicle.
If I own more than one car, which car should I try with?
If you own more than one car, it is important to choose the right one in order to get the specific loan you need. Although there are other factors, the main thing that determines the amount of money you could qualify for is the equity in your vehicle.
With that in mind, we recommend that you first decide how much you wish to receive from LoanMart. If you think your car's market value matches the amount you hope to receive, it is a good fit.
If you have multiple vehicles, consider the amount you need, and then choose the car that is closest to that number. Choosing the most valuable car could qualify you for an amount that is greater than what you need or can afford. In the same way, a car that is worth less may not give you enough funds. If you still canât decide, itâs okay to submit more than one car at a time. Weâll help you choose the one thatâs the best fit for you.
If a customer is unable to make the payments, we will do our best to work with them to avoid repossession of their car. Our goal is to help our customers out of a financial jam without making them lose their car. This is a level of understanding that would be hard to find with auto pawn loans. Letâs face itâwhy would they care if your car is sitting in their back lot behind a fence? We do.
Our process has been streamlined to be quick and easy. Begin now so we can help get you the money you need as fast as one business day from submission.
What if you have two names on your car's title?
Your car can qualify for an auto title loan even if there are multiple names on your car's title. As long as you are noted as a legal owner of the vehicle, you can submit the title for an auto title loan. However, if youâre sharing a car with someone who is on the title, they will also have to submit their information. A more detailed answer:
- If your title has âorâ between your name and another personâs name, you are good to go.
- If your title has âand/orâ between your name and another personâs name, give us a call to learn more about the requirements.
- If your title has âandâ between your name and another personâs name, the other person legally owns it as well and you both need to apply.
If you want to know more about the names on a carâs title please feel free to call us or visit our FAQ page
Sending in Your Pictures
Unsecured loans are their own category of loan. They can also be called installment or signature loans, but theyâre the same thing.
We will need photos of your car to help determine its condition. Most smartphone cameras will do. Take the pictures outside in bright natural light. The clearer they are, the easier it is for us to judge the value and the condition of your vehicle. This will help us process your loan faster.
front view
Take a picture of the front of your vehicle. Hold the camera steady and wait for it to focus well.
back view
Get a photo of the rear of your vehicle. Make sure that reflections don't wash out the image.
DRIVER-SIDE VIEW
Take a picture of the side of the vehicle where the driver sits. Make sure it shows the entire side of the car from top to bottom and front to back.
PASSENGER-SIDE VIEW
Snap a picture of the side of the car where the front-seat passenger sits. Make sure the car is not too far away in the photo.
ODOMETER VIEW
Get a close-up image of the odometer so we can see how many miles are on your car. You may need to turn off your flash to avoid reflections.
VIN (VEHICLE IDENTIFICATION NUMBER)
This is found inside the driverâs door (looks like a label) when you open it. You can also see it through the window on the driverâs side. Take a picture of the number wherever you find it and make sure we will be able to read it.
Where do I send the photos?
Once you have these photos, send them to us using any of these methods:
- Email them to lmdocs@loanmart.com
- Text them to 855-422-7412
- Drop them off at a local participating location. Use our store locator to find the participating store nearest to you.
