How Does a Title Loan With Direct Deposit Work?
There is nothing worse than experiencing a stressful financial emergency. With the recent inflation rise, many people struggle to pay their monthly bills. When you can’t save up or don’t have disposable income, paying for unexpected expenses can be devastating. Only some Americans have good enough credit to apply for traditional bank loans.
If you need to access quick cash, but your credit is not up to par, inquiring about car title loans using your car could be a solution! Through some title loan options, you can potentially receive approval within the same day as applying and have the money directly deposited into your account.
Learn how car title loans with direct deposit work and how simple it can be to receive fast cash with this option!
How Can I Apply for Title Loans with Direct Deposit?
Title loans work by allowing a person to borrow a percentage of the available equity in their vehicle. If you obtain approval, lenders place a lien on your car title and remove it after repayment is complete. Your car is the collateral for funding if the money is not paid back.
Traditional bank loans are generally unsecured options because they do not require physical collateral in exchange for the loan. Instead, lenders will solely consider a person’s credit history during the application process, which means if your score is too low, they can deny you. With a title loan, credit scores are considered, but they are not the main focus of a person’s approval. Instead, lenders care about the following:
- How Much Equity Is in Your Vehicle
- If You Have Income to Repay the Loan
Your car’s value is essential for title loan lenders because it can affect your eligibility and the potential loan amount. It’s also a federal law that lenders must verify a person’s income before approving them for funding! This regulation is set in place to prevent predatory lending practices.
How Much Can I Get Through a Title Loan With Direct Deposit?
The loan amount you can potentially receive will depend on a few factors.
Generally, qualified borrowers can receive anywhere from 20-50% of the available equity in the cars. You can find out how much equity your car has by subtracting the amount you still owe on it from how much its overall value.
Title loan amounts can also vary depending on which state you’re in! Different states have different laws regulating title loan funding.
How Can I Receive My Title Loan Money?
Obtaining approval can be simple if you meet the requirements for a title loan and then submit the correct documentation. The documents required for a title loan are:
- A Valid Government or State Issued Photo I.D.
- Proof of Residency
- Proof of a Qualifying Vehicle Title in Your Name
- Proof of Consistent Income
- Recent Photos of Your Vehicle
You can use a driver’s or passport to verify your age and identity. You also must submit proof of consistent income. Title loans can be accessible loan options for people from various financial backgrounds because you don’t need to work a traditional job! Showing proof of income can mean using Social Security benefits, workers’ compensation, tax returns, or some self-employment, to name a few. Contact the title loan representative if you have questions about your circumstances!
After you submit your documents via fax or email and potentially obtain approval, receiving your cash can be quick. You have several options available to you:
- Have the Money Directly Deposited Into Your Bank Account
- Have the Money Directly Deposited Into a Debit Card
- Receive a Check in the Mail
- Visit a Participating Money Transfer Location in Your Area
What are the Requirements for a Car Title Loan?
The requirements involved are simple and not too challenging to meet, especially compared to traditional loan options. For a title loan, you must:
- Be an Adult at Least 18 Years or Older
- Have a Qualifying Vehicle Title in Your Name
- Have a Qualifying Vehicle With Some Positive Equity
- Show Proof of Consistent Income
A qualifying vehicle with positive equity can be the most significant determinant of loan amounts. During your inquiry, lenders will look at how much value your car has and what condition it’s in. If you need help determining car value, you can use websites like Kelley Blue Book to receive an estimation.
Apply for Online Title Loans With Direct Deposit Today!
Title loans can be simple options for people who need money quickly. Using direct deposit to receive your funds can help during a financial crisis. If you have a bad credit score and worry about passing approval for a traditional loan, car title loans could be a better option!
Learn more about online title loans by filling out this pre-approval form or calling to speak with a title loan agent today.
Also read: How To Get Online Instant Payday Loans with Guaranteed Approval?
