When cash is needed right away, you can’t afford to wait for who knows how long for a mailed check. That’s where vehicle title loans come in. Many such lenders will place loan funds directly in your bank account, allowing you instant access. With that said, here’s what you should know about getting a car title loan with direct deposit – and more.
Explain Car Title Loans
These are short-term loans to be repaid in 30 days or less, although longer terms are often available.
Your vehicle, which must be in your name, will serve as collateral, although you may still drive it while making payments. So, be certain you can repay the loan before signing off on one, lest your vehicle becomes seized and sold to cover losses.
Instead of taking possession of your vehicle, the lender will merely keep your vehicle’s lien-free title until the loan is paid off. Note that, in addition to cars and trucks, most title lenders will also consider recreational vehicles, boats, trailers, and motorcycles.
How Much Can I Borrow?
That depends in part on the state in which the lender is located, as well as your income. In the main, though, the amount you’re offered will be based on your vehicle’s make, model, age, mileage, and overall condition. Sometimes, even trim levels can factor in.
Having said that, you can usually expect to get between 25 percent and half of your vehicle’s value. Loans typically range between $100 and $10,000, with $1,000 being the average.
What the amount you can borrow will NOT hinge on is your credit standing. While some title lenders will check your credit, they won’t focus on it. They have your vehicle as collateral, which greatly diminishes their risk.
What are Other Loan Requirements?
You’ll need to show you can repay the loan. If you’re employed, that means pay stubs or bank statements. But alternate income sources also work as well. Those sources may be, for example, rental income, Social Security, a pension or retirement plan, or Worker’s Compensation.
You’ll also need a government-issued ID and proof of residence (utility bills, etc.). Some lenders also require you to show proof of vehicle insurance and personal or professional references.
And, in lieu of taking your vehicle to the prospective lender for an appraisal, all you must do is submit recent, quality photos of the vehicle you wish to collateralize from all angles. Take a shot of the vehicle identification number as well as a clear one of the odometer.
Getting Your Funds
Once you’ve submitted your application, which you can do online, you’ll likely hear back from the title company the same day, sometimes within minutes. Once approved, funds are usually available within 24 hours. You’ll likely have options in terms of funds receipt, including in-person pickup or overnight check.
Some lenders will allow you to get a car title loan direct deposit or wire transfer if you need your cash right away. Before taking out a loan, ask whether the title loan company in which you’re interested offers such a service. You’ll need a bank account or mobile wallet that can handle Automated Clearing House (ACH) transfers. If you don’t have one, be sure to remedy that before submitting your application.
Ultimately, getting a car title loan with direct deposit is very possible. If that payment method is important to you, ask your potential lender up front whether it offers such an option. If it does, you’ll have the needed funds in no time.