How Does a Title Loan Work in Texas?
Car title loans are collateral-based loans and one of the simplest ways to get cash in Texas! Title loans are short term loans that let you use your car title as collateral for cash. By doing so, you can access a portion of your car’s equity.
If you need fast funds for an emergency, a car title loan could be the right fit for you! But what are the requirements for a car title loan in Texas? Keep reading to learn more about car title loans in Texas!
The title loan requirements in Texas can be straightforward and simple! All you will need to qualify for a car title loan initially is the car title in your name and a source of steady income. Additionally, you must be the legal age to apply and have a qualifying car.
A qualifying car is just a vehicle with a certain amount of value. Think about it- if the car is used as collateral for the loan, it must be worth something. Otherwise, there is no reason why a lender would allow you to leverage an asset! To qualify as collateral for a title loan, a car must have some positive equity.
If you aren’t sure if your car will qualify, don’t sweat it! When you apply for a ChoiceCash title loan serviced by LoanMart, there is a helpful online calculator tool that can do the hard work for you. Just submit a few bits of information about your car, such as:
- The Year
- Make, Model, and Style
- The Current Mileage
- Any Cosmetic or Surface Damage on the Vehicle
- Any Upgrades or Modifications
- The VIN ( Vehicle Identification Number)
The amount you can receive through a car title loan will largely depend on the value of your car and how much you can afford to repay each month. So, your income and your car’s value will determine your loan amount! The amount you can get through a title loan in Texas is usually 25%-50% of the value of your car.
If you’re stuck in a financial pickle, you need a fast way to get cash. So you may be wondering how long the title loan process will be!
Upon approval, you’ll give the lender the title to your car, and you could potentially receive your cash in as little as one business day or less! It will partially depend on how quickly you can send in your documents. So, ensure you are prepared and have your documents ready before starting your loan inquiry! You can expect to need the following documents if you want to apply for a car title loan in Texas:
- A Car Title in Your Name
- Pay Stubs, Bank Statements, or Another Document that Proves Your Income
- Proof of REsidence Through Recent Official Mail (Pay Stubs, Utility Bills, Credit Card Statements, Etc)
- Recent Photos of the Car (If Applying Online)
- A Valid Driver’s License, Passport, or Another Valid State/Government- Issued Photo ID
If you are applying for a car title loan online, you may be able to submit your documents via email or fax! Also, with some title loan options, you can skip the vehicle inspection in person and opt for an online one instead. Just submit a few photos of your car while applying for a car title loan in Texas!
One of the requirements for a title loan in Texas is that you must prove you can afford to repay the loan. However, that does not mean that you need to have a 9-5 office job! In today’s world, there are many different ways to earn a living. As long as you have proof of an alternative source of income, you can use that during the inquiry process.
Some of the forms of alternative income that could be accepted by your lender are:
- Worker’s Compensation
- Self Employment
- Annuity Payments or Retirement Income
- Pension Income
- Settlement Income
- And More!
So if you have a title to a paid off or close to paid off car in your name and a source of income, don’t hesitate to apply for the financial help you’re searching for today!