collaborative post // Something has come up for which you need cash. The problem is, you’re ineligible for a bank loan, and are running out of ideas. Well, if you have a vehicle in your name with a lien-free title, you likely can get what’s called a vehicle title loan. But do you need good credit to get a title loan? No. And here’s what else you should know.

Explain Title Loan

A title loan is a short-term loan with terms of 30 days or less, although some loan companies will stretch payments out a year or so.

Such a loan requires that you have a vehicle – car, truck, motorcycle, RV, or boat – and a title, which the lender will hang onto until the loan is paid off. You can continue to use your vehicle as usual, which is a prominent loan feature. There’s no need to give up the keys.

Do note that because your vehicle serves a loan collateral, you could lose it to seizure if timely payments aren’t made. The lender would sell your property and use proceeds to cover your delinquency.

How Much Can I Get?

This varies, depending on the law in the state in which the lender is located, your ability to repay the loan, and the make, model, mileage, age, and condition of your vehicle. It’s mostly up to the lender.

You can generally expect to be lent between 25 and 50 percent of your vehicle’s value, which usually comes out to between $100 and $10,000 or so.

The amount available to you, however, is not dependent on what your credit report reveals. Although your lender might run a credit check, subpar credit will not eliminate you from loan consideration. Every day, people with all kinds of credit histories are green lit for title loans.

Remember, your vehicle secures your loan, so title companies don’t care that much about your scores. This is the industry advantage over traditional lenders.

What Must I Provide?

Other than a vehicle and title, you’ll need to have a government-issued photo identification and proof of income. For the latter, bank statements or pay stubs will suffice – if you’re employed. If you aren’t but have another source of regular income – retirement, self-employment, rental property, Social Security, etc. – that’s acceptable as well.

A loan for auto title might call for other documents, depending on the lender, including proof of residence, personal or professional references, and proof of insurance.

In lieu of taking your vehicle to the lender for an in-person appraisal, you’ll only need to submit recent, quality photos of it from all angles, being certain to get shots of the VIN and odometer.

How Soon Can I Get Cash?

Another industry feature is how quickly you can get cash. In fact, it’s possible for you to apply for a title loan online and be approved the same day, often within minutes. After you’re approved, you can often have cash in hand the next day.

You may be presented with a variety of options for getting your loan. You may be able to retrieve it from a brick-and-mortar location or get a payout from an area MoneyGram. You also may be able to have your loan directly deposited into your bank account, so it’s a good idea to make sure your account is ACH transfer-enabled before you apply.

So, no, you don’t need good credit to get a title loan. Not at all. While the lender in which you’re interested might run a credit check, it won’t focus on it. All you really need is an eligible vehicle, a clear title, and the ability to repay the loan.

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