If you’re a Lone Star State resident and need cash fast, you might be able to get what’s called a title loan.
All you essentially need is a vehicle in your name that’s registered in Texas, a lien-free title, and loan repayment ability.
You now may be wondering how much you can get for a title loan in Texas. Keep reading for that and more.
What is a Vehicle Title Loan?
These are loans with terms of 30 days or less, although longer terms may be possible, depending on the lender and any state restrictions.
In exchange for a loan, you’ll put your vehicle up as collateral, although you can still keep and use it during the repayment period.
This is a huge benefit over pawn loans. Because the loans are secured, lenders aren’t too concerned about risk. You will simply turn over your vehicle’s title until the loan is paid off.
In addition to a car or truck, some lenders will also consider boats, trailers, RVs, and motorcycles.
Note that should you default on your loan, your vehicle is at risk of being seized and sold. So, be positive you can make your payments before taking out a title loan.
Am I Eligible?
You likely are if you have a vehicle, title, and regular income. In Texas, you’ll also need to be at least 18.
Also required is a Texas-issued ID and proof of residence (utility bills, etc.). What your eligibility won’t hinge on is your credit history.
While some title loan companies might pull your credit, your history won’t be the focus since the loan is secured.
For proof of income, you’ll need to show paystubs or bank statements if you’re employed. Most lenders will also accept other forms of income, including Worker’s Compensation, disability benefits, and rental properties. Settlements and pension income qualify too.
How Much Can I Borrow?
For a title loan online in Texas, that depends in part on your income. The higher that is, the more you can generally get.
The other major factor is the value of your vehicle, which is determined by its age, mileage, make, model, and overall condition. Texas lenders may also consider the vehicle’s style, trim level, upgrades, or modifications.
Loans tend to range between $100 and $10,000, with the average being about $1,000. You can expect to be offered between 25% and half your vehicle’s value.
Note that in lieu of taking your vehicle in for an appraisal, you merely need to provide good, recent photos of it in natural lighting (no garage shots) from all four angles.
Take some photos of the interior, in addition to the odometer reading and vehicle information number.
What’s the Application Process Like?
First of all, you can apply totally online from the comfort of your home or office. Simply gather all required materials and submit. If you have any questions or need more information, you can always call the title loan lender.
Once you’ve submitted your application, you’ll likely get a decision that day, sometimes within minutes.
Once you’re approved, you can expect to have funds in hand by the next business day. Depending on the lender, you’ll have options regarding the manner in which you get your cash.
Those may include direct deposit, overnight check, in-person pickup, and through a local MoneyGram location. Be sure your bank account is set up for ACH transfers ahead of time If you opt for direct deposit.
In summary, how much you can get for a title loan in Texas depends on a variety of factors topped by your vehicle’s value and your income.
Overall, title loans are a good way to get cash in a pinch – IF you can make your payments.