Borrowing against your car can be a smart way to get your hands on some quick cash. Unlike personal loans or home equity loans, your credit history matters little, as your car will serve as collateral for the loan. Even better, consumers can get title loans in Virginia by following a few simple steps.
What is A Title Loan?
Created specifically to help borrowers who might otherwise have limited borrowing options, title loans allow them to leverage the title to their car to get the loan they need. In other words, a title loan is a quick and easy way to convert the equity you have in your car into cash. Even better, title loans in Virginia can put cash in hand in as little as 24 hours.
How do Title Loans Work in Virginia?
In most cases, all you need to get a title loan in Virginia is to have a qualifying vehicle in your name and proof of enough income to be able to repay the loan. To qualify, a vehicle must be currently registered and titled in the name of the borrower. The borrower should also have enough equity in the vehicle to support the amount being borrowed.
Equity is the difference between the current market value of the car and how much is owed on it (if it isn’t paid off). The amount of equity available can be figured out quickly, using an online equity calculator.
The basic information required is usually the make and model of the car, the year it was built and its current mileage. The overall condition of the vehicle is taken into consideration, too. This will establish the value of the car, which can then be compared to its payoff amount to determine the amount of equity you have available.
What Credit Score Do You Need?
Generally, your credit score really doesn’t come into play when you’re applying for a title loan. Title loans are based upon the value of the car and the ability you demonstrate to repay the loan. This means that your current income and how much your car is worth are the main considerations when applying for title loans in Virginia.
This can make getting a quick loan much easier, plus it saves you the time and trouble of the often-extensive process you must go through with a bank or a credit union. Plus, applying for a loan at a bank or a credit union can actually make your credit score lower. Meanwhile, applying for a title loan doesn’t have the same consequences because these lenders base their decisions on the equity you have in your car and whether your job pays enough to make sure you can repay the loan.
How Does the Loan Process Work?
Before applying for the loan, you’ll need to get copies of your bank statement, pay stubs or whatever other documentation you can supply that shows you can repay the loan. Lenders will also want current photos of the car to help them judge its condition. You’ll need to get shots from all four angles of the car, as well as interior photos.
They will also want to see a current utility bill, or some other documentation that proves your address is in Virginia, along with a state, or federal government issued form of ID. And, of course, you’ll need to have the title document, in your name, showing the car is registered in the State of Virginia.
Applications can be submitted online once you have all those documents gathered and ready to upload to the lender’s application site. Title loan applications can also be submitted by phone.
The Approval Process
In most cases, you’ll know if your loan is approved within 24 hours or less. At that point, you’ll be asked to sign the loan documents and the cash can be deposited directly into your bank account. You can also pick up your check in person at a designated location, or have it mailed to you.
These tips can make getting a title loan in Virginia fast and easy to do. You can get the money you need and continue to drive your car while you pay off the loan. Title loans can be a smart option when you need some quick cash.