Can I Get a Loan Using My Car as Collateral?

If you have a car or truck that is paid off or close to being paid off, good news! Your car’s title could be your ticket to fast cash in as little as 24 hours.¹ Eligible borrowers can apply for loans by using their cars as collateral for emergency funding. Through a ChoiceCash title loan, you can use your car title as collateral for the loan and unlock up to $15,000 depending on your income and the value of your car. Typically, you can apply for this type of secured loan in person, online, or over the phone.

Advantages of Applying for Loans Using a Car as Collateral

Getting a title loan by using your car as collateral for the loan comes with several advantages! Some of the most notable benefits of qualifying for ChoiceCash title loans serviced by LoanMart include the following:¹

Bad Credit is OK

You can qualify for a loan by using your car’s title as collateral for funding – even if you have bad credit! Title loans are secured loans, so your credit history isn’t the focal point of the application process. Instead, the value of your collateral and your income will mostly determine your eligibility for funding! If you can meet the lender’s requirements for a car title loan, then having a poor credit history may not be an issue during your application.¹

Fast Access to Cash

Car title loans can be advantageous because you can get access to cash in as little as 24 hours and the approval process is made as streamlined as possible. If you are fully approved for a ChoiceCash title loan serviced by LoanMart, you can have your funds disbursed via direct deposit or have the money added to a debit card to get your money as soon as the next business day!¹

Stay on the Road

The title loan application process is flexible and convenient because you have to use the title of your car as collateral for the loan. However, this doesn’t mean you need to give up driving your vehicle during the repayment process. You will be able to drive anywhere and everywhere you need to go while paying back a title loan, but keep in mind that you are expected to stay on top of your payments every month.

Competitive Interest Rates and Other Perks

Another advantage of getting a loan by using your car as collateral for funds is that you can access competitive interest rates! Through ChoiceCash title loans, you’ll be able to receive other important perks, like flexible loan terms and zero prepayment penalties.¹

Common Misconceptions About Using Your Car as the Collateral for the Loan

There are a few common misconceptions about using your car as collateral for a loan, such as:

• You Lose Access To Your Car After Using Its Title as Collateral For The Loan
• You Will Only Qualify For a Title Loan If Your Car is Paid Off
• You Must Have a New Car To Be Qualified For a Loan Against Your Car

As mentioned above, your lender will not prevent you from using your car after you have signed an agreement for a title loan. However, access to your car throughout its repayment period is tied to your ability to make a payment on your loan on time. One of the potential disadvantages of title loans is the fact that your car can be repossessed if you default on the loan.

It is possible to get a title loan on a financed car! One of the main requirements for a title loan is that your car must have enough positive equity. Even if you are making payments on your car loan, your vehicle will have positive equity if its market value exceeds the amount that you still owe on your vehicle.¹

And finally, you do not need a new car to take out the emergency cash you need through a car title loan. It’s possible to borrow against the value of new, vintage, and older cars or trucks! Use ChoiceCash’s title loan calculator to see whether your vehicle will prequalify as collateral for a title loan and get an instant loan quote today.

What Should I Consider Before I Use My Car as Collateral for the Loan?

Before you take out a loan against your car, you should consider the potential downsides of a vehicle-secured loan. As mentioned above, if you fail to pay off a loan secured by your vehicle, the title lender can take your vehicle and sell it to cover the outstanding balance of your loan.

Before you sign a loan agreement, go through your budget and see whether you can fit in a monthly loan payment. It’s important to set yourself up for success and only apply for a loan if you are certain that you can afford to pay it back. If you can’t afford to take out a loan, you can look at other options, such as drawing from your savings or borrowing from friends or family members.

How Can I Take Out a Loan Against My Car?

Applying for a loan against your car or truck should be very straightforward. The application for a ChoiceCash title loan serviced by LoanMart can be an efficient and convenient application process! Check out the three simple steps to apply for the emergency cash you need:¹

Call or Click Online

Did you know you could get a loan against your car from the comfort of your home? Apply now online by submitting a quick pre-approval form or call 855-422-7402 to speak with a ChoiceCash title loan agent.¹

Upload Your Documents

During the second step of your application, you must provide a few documents to verify your income and other relevant information. Applicants who wish to take loans against their car are usually required to have proof of income and residence, recent pictures showing the vehicle, a car title in their name, and identification through a valid government-issued photo ID card. When you apply for a ChoiceCash title loan serviced by LoanMart, you have the option to submit it all through the customer portal online or email and text your documents to a loan officer.

Get Your Money!

If you are fully approved to use your car as collateral for a ChoiceCash title loan, the final step is to choose how you would want to receive your cash and to sign your loan agreement!¹

Why Should I Use My Car As Collateral for a ChoiceCash Title Loan?

If your bank account is negative and you have no money, you need a fast loan option to help you get back on your feet. The best loans for using your car as collateral can be online title loans because applying for a loan online is often faster than applying for a loan in person. If you are eligible for a ChoiceCash title loan serviced by LoanMart, you can access perks like flexible loan terms and competitive interest rates.¹

On top of these benefits, you can get your money in as little as one business day! In some cases, borrowers who qualify for a loan by using their car as collateral can get their money the same day they are approved.

Complete a short questionnaire online to discover if you are instantly pre-approved. Call 855-422-7402 to find out if title loans are allowed in your state and apply for a loan using your car as collateral today.