What Kinds of Cars Can Qualify for a Title Loan?
Title loans allow people to borrow money using their car as collateral, while continuing to drive the car during the loan period, making them a great option.
When deciding to get a car title loan, it may be necessary to review which kinds of cars are eligible for the program. Denver residents may be pleasantly surprised that a wide variety of cars can qualify for a title loan. As long as the car is paid off (or close to paid off) and the title is possessed by the owner, they can apply for a title loan.
Some of the types of cars that can qualify for a title loan are SUVs and crossovers. These vehicles often have more value than comparable sedans and hatchbacks. SUVs and crossovers are sturdy and tough cars which are ready-made for Denver winters.
Another type of car that may be eligible for a title loan is a passenger truck. These vehicles are versatile for work, family use, and activities like snow plowing. These vehicles also generally have a higher value than smaller cars.
Sedans, minivans and compact cars are also large product segments for car title loans. These cars are versatile and affordable.
Hybrid and electric cars may also be eligible. These cars are environmentally friendly and appeal to many Denver residents.
As you can see, all common varieties of automobile can be considered for a title loan. The important thing is that the car has a sufficient amount of equity to provide the collateral necessary for the loan, and that the borrower has the ability to repay the loan. Seeing if your car qualifies may be as easy as filling out a 5-minute online application on most title lender websites or giving them a call.
Luckily applicants with bad credit or no credit are often eligible for car title loans, thanks to the loan being backed by the borrower’s car. This may enable more people to take advantage of these financial programs. Income verification may be necessary, so the loan officer can ensure that the borrower’s earnings are enough to cover the loan when it comes due.
Title loan repayment terms should be carefully considered before the consumer signs the loan agreement. Many auto title loans work on a “balloon payment” system, where the full amount of the loan plus any additional interest and fees must be paid off 30 days after the origination date. Some states allow rollover of 30-day title loans from one month to another, but the fees and interest must be paid again. This type of loan can prove quite difficult for many borrowers. Fortunately there are many title loan lenders providing more relaxed loan terms.
As with any financial transaction, borrowers should make sure that they fully understand the terms of the loan before they borrow. When borrowers are educated about the risks and benefits, they will be able to make educated choices about how to use car title loans to help themselves and their families.
Title loan lenders like LoanMart exist to help United States residents take care of sudden financial hardships. There is no need to be embarrassed about needing a car title loan; the program is in place due to the great need for short-term loans. When people have access to car title loans, they are able to meet the short-term financial needs of their families. Lenders like LoanMart may be able to help any qualified car owner reach their financial goals.