How To Get Approval For Your Title Loan
Car title loans, also known as a title pawn, title pledge, or pink slip loan, is an alternative lending option that provided relief to more than two million Americans in need of quick cash in 2015.
This method of borrowing money relies on the equity of the vehicle instead of the borrower’s credit history. This is why even those who are bankrupt, underemployed, or suffering from poor credit may qualify for a car title loan.
The requirements for applying for a title loan vary according to lender and state. While a title loan is one of the most accessible types of loans, there are still instances when a lender can turn down potential borrowers.
Here are some factors that affect the approval of a car title loan:
As with any other type of loan, many states require borrowers to be at least 18 years old before entering into a title loan agreement. This is because those who are below the age of 18 may not be old enough to be held legally responsible for commitments such as repayments.
Many lenders ask for a proof of income to gauge a borrower’s ability to pay for the title loan. If the income falls under the calculated minimum income, the lender is likely to decline the application.
- Vehicle Value
The vehicle’s value primarily determines the loan amount, and if the vehicle is salvaged, too old, or has high mileage, lenders are likely to deny the application. Those whose vehicles are over a decade old or have run more than 100,000 miles, for example, may have a hard time securing an auto title loan.
To qualify for a loan, some lenders require borrowers to have and maintain liability, comprehensive collision, and mechanical breakdown insurance on the vehicle to qualify for a title loan.
If you’re unsure whether you qualify for a title loan, seek help from our experts at VIP Finance of Texas. We make it easier for you to secure the financial assistance you need, right when you need it.
Call any of our six convenient Metroplex locations for a free quote!