When you need money fast and don’t have great credit, you might wonder how you’ll get the money you need. If you own a boat without any loans, you may borrow against the value of it, accessing some of its value in cash while still using your boat as usual.
At Swift Title Loans, we offer boat title loans online, making it easy to apply and get your cash fast. Sometimes, we even fund loans on the same day you apply online.
What is a Boat Title Loan?
A boat title loan is a secured loan. It uses your boat as collateral for the loan, meaning the lender can repossess it if you don’t make monthly payments. This type of loan works well when you own a boat without any loans on it. You essentially borrow from the boat’s equity to get the cash you need.
How do Boat Title Loans Work?
The good news is that when you borrow a boat title loan, you keep the boat and can use it normally. The only thing you give up is the boat’s title. The lender places a lien on the title until you satisfy the loan agreement.
The only thing you cannot do while you have a boat title loan is sell it. You must satisfy the loan first before you can sell the boat.
The application process for a boat title loan is simple, and some borrowers even get their money the same day they apply.
Can You Get a Boat Title Loan With Bad Credit?
Lenders focus on the value of your boat when determining if you qualify; less emphasis is on your credit history or scores. So you can get approved for a boat title loan even with bad credit.
The key is proving you have a stable income and can afford the repayment terms.
Requirements for Boat Title Loan Approval
To qualify for a title loan on a boat, you must meet the following requirements:
- Own a boat with adequate value and no loans
- Be named on the boat’s title
- Provide valid ID
- Show proof of residency in the state you apply for the title loan
- Provide proof of adequate income to cover the loan and your other obligations
- Provide proof of boat insurance
The lender’s requirements are much simpler for title loans than personal loans because the boat is the loan’s collateral. When there is collateral, the lender has something to fall back on if you don’t make your payments.
Pros and Cons of Boat Title Loans
Before borrowing any type of collateral loan, it’s important to understand the pros and cons. Here’s what you should know about boat equity financing:
Pros
- A good credit score is not required: You can apply for a boat title loan with a low credit score and still get approved. Lenders don’t focus on your credit history.
- Get funds fast: You can get fast cash when you use your boat as collateral on a title loan. Most people get funds by the next business day.
- Keep your boat: You don’t have to give up possession of your boat while you repay the money borrowed on a title loan.
Cons
- High interest rates: Title loans typically have much higher interest rates than personal loans. Be sure you can afford the payment before accepting it.
- Risk losing your boat: If you miss too many payments, the lender can repossess your boat and sell it to make back the funds they lost on your loan.
Pawn Loan vs Boat Title Loan
A boat title loan is not a pawn loan, even though the names are often used interchangeably. The largest difference is the pawn loan doesn’t allow you to keep possession of your boat. Instead, the pawnbroker holds onto the boat while you repay the amount of its equity they loaned you.
Pawn loans are usually rather short-term, typically a few months. After repaying the loan, you will receive the boat back and be free to do with it what you want. On the other hand, title loans allow you to continue using the boat, but you cannot do anything with it until you satisfy the loan.
Both loans put you at risk of losing your boat if you cannot make the payments.
Final Thoughts
It’s best to use a boat title loan in extreme emergencies when you cannot access fast cash. You can use your boat as collateral and immediately access some of its value. You are free to use the funds how you want, but because you’re putting your boat at risk, save it for emergencies that would only worsen if you didn’t borrow the funds.
If you need money fast, contact Swift Title Loans today. Provide some information about yourself and your boat, and you could be on your way to getting the cash you need fast.
