If you need some emergency cash, you may be wondering if you can take a personal loan or a small short-term loan against your vehicle title. Not sure if this is a good idea, or if it’s possible? In this guide from Panhandle Title, we’ll discuss all the details.
Personal Loans Don’t Require Collateral, But Need Good Credit
A “personal loan” usually refers to a loan made by a bank, credit union, or an online lender, which is not “secured” by any collateral like a vehicle. That means you can’t get a personal loan against our vehicle title from most banks and online lenders.
Instead, personal loans are issued based on your credit score and credit history, as well as other factors like your income. This is what determines whether or not you’re eligible, so if you don’t have great credit, it may not be possible to get a personal loan.
So, what choice do you have if you want to get a personal loan? The best option is a car title loan.
A Title Loan Lets You Borrow Against Your Vehicle Title
Title loans are different from personal loans. They let you borrow money against the value of your vehicle. Because you use your car as collateral, the title company could legally repossess your car if you fail to pay your loan. Panhandle Title lets you get the cash you need even if you have a bad credit score. For this reason, title loans are the preferred option if you want to get a personal loan against your vehicle title. Your credit doesn’t matter, so it’s easy to qualify.
How Do I Qualify for a Title Loan?
Every title lender has slightly different requirements, but they tend to be quite similar. For example, Panhandle Title can provide you with a title loan as long as you meet the following qualifications:
- You own your car and have a “free and clear” title, meaning you’re not making any payments on it. Your title must also be in your name
- You can provide your vehicle to us for a quick 5-minute inspection
- You can prove your current place of residence
- You make at least $1,000 per month in net income (income after taxes, deductions, etc.)
If you meet these qualifications, you can get a vehicle title loan from Panhandle Title, even if you have bad credit or no credit at all.
Apply Now to Get the Cash You Need by Borrowing Against Your Vehicle Title
It may not be possible to get a personal loan – but a title loan is the next best thing! So, if you need cash in the Panhandle area, don’t wait. Contact Panhandle Title online, stop by our office in Cottonwood, AL, or call us at (850) 785-2274 if you have any questions.