Unexpected expenses can create a dire financial situation, and having access to immediate funds is essential. Emergency car title loans are secured loans that provide immediate cash in exchange for your car’s title.
To be clear, financial emergencies are situations you cannot control, and if you don’t take care of them, they can cause more financial distress. Common examples include:
- Necessary car repairs
- Medical bills
- Unexpected home repairs
The common denominator is that you need money to fix the situation, or it will cause further issues.
Auto title loans are emergency loans that use your car as collateral. The lender puts a lien on your title until you fully pay the loan. However, you get to keep and drive your car like normal. Because the focus is on your vehicle’s value, title lenders focus on the vehicle and your ability to repay the loan; they don’t put a lot of emphasis on your credit history.
However, it’s important to understand that your car is at risk of repossession if you cannot repay the loan. To reduce this risk, read the loan agreement closely to ensure you understand and can afford the minimum payment required. If you agree that an auto title loan is the right choice, you can have funds fast, sometimes the same day, when you complete the application for a title loan online and get approved.
How Does An Emergency Car Title Loan Work?
We understand how stressful emergencies are, but when you apply for a title loan with us, we make the process as seamless and stress-free as possible.
- Apply for pre-approval
The first step is to complete an online application for a title loan. It takes only a few minutes to provide the necessary information about yourself, your income, and your vehicle. You don’t have to submit documentation at this point, but be sure all information you provide is legit.
You’ll receive an answer within a few minutes to determine if you’re pre-approved and at what rate and terms. - Decide if the terms are something you can afford
After receiving offers, determine if you can afford the monthly payment plan. Remember, your car is the collateral for the loan. If you miss payments, the lender can send your account to collections or start the repossession process. - Upload necessary documents
If you decide to move forward with the approval process, you must provide the necessary documents to prove your identity, residency, income, and the value of your vehicle using the following documents:- Paystubs or other proof of income
- A valid Government-issued ID
- Proof of registration and auto insurance
- A copy of your lien-free vehicle title
- Pictures of your vehicle with the odometer reading
- Accept the loan agreement
After receiving final approval, you must accept the loan agreement. This is the final step in getting your emergency funds, but read the fine print to ensure you understand what’s required. - Receive funds
You have several options to receive your funds to help when you need fast cash, including:- Pick up a check at a local Swift Title location
- Request an instant bank transfer
- Request a mailed check
- Make payments
After receiving the funds, you must keep up with your monthly payments. Be sure you know where to send your payments and what payment methods are accepted to ensure your payments are posted on time.
Callout box: Before accepting a title loan to handle your financial emergency, pay attention to the interest rates and fees charged. If you get too far behind on your payments, you could cause another financial emergency and put your car at risk of repossession.
How Much Can You Borrow for an Emergency?
Every lender has different loan amount requirements, but they typically range from $500 – $50,000. How much you can borrow depends on the value of your vehicle and how much you can afford to repay. Most lenders will check your credit history, but it’s not a major factor in determining what you can borrow.
Your vehicle is the loan’s collateral, or what the lender uses if you don’t repay the loan, and your income tells lenders how much you can afford to repay. Because you’ll have equal monthly installments due, it’s easy to determine which payment fits within your budget.
What If You Have Bad Credit?
Most lenders don’t focus on your credit scores, so a bad credit score shouldn’t prohibit you from securing a title loan to satisfy your financial emergency. The key is proving you can afford the payments and own a vehicle without liens.
How Fast Do You Get Funds?
Some lenders offer same-day funding if you apply for the loan and are approved by their cutoff, which is usually early afternoon local time.
This means you completed the application process and submitted all necessary documentation to prove the information you provided. If you miss the cutoff, most lenders fund title loans by the next business day.
How to Tell If an Emergency Title Loan is Right For You
If you need financial help, it’s important to exhaust all other options before applying for a title loan, including:
- Loans from friends or family: If your financial need is low, you may ask to borrow money from friends or family to satisfy your emergency to avoid interest and fees.
- HELOC: If you own a home and owe less than it’s worth, you may be eligible for a home equity line of credit. However, you usually need decent credit to qualify.
- Personal loan: Unsecured personal loans don’t put any of your assets at risk, but to qualify, you must have great credit and prove you can afford the payments.
- Selling possessions: If you have valuable assets you can live without, consider selling them and using the cash to handle your financial emergency.
FAQ
What Happens If I Don’t Repay a Title Loan on Time?
Title loans are secured loans that use your car as collateral. A lender can send your account to collections if you miss too many payments. They can also start repossession, taking possession of your car and selling it to recoup the funds.
Do Emergency Title Loans Affect My Credit?
Emergency car title loans typically don’t affect your credit if you make your payments on time. Title lenders don’t report title loans to the credit bureaus. However, it will likely show on your credit report if they must send your account to collections or repossess your vehicle.
How Can I Avoid Future Financial Emergencies?
To avoid future financial emergencies, try some of the following:
- Get a part-time job to increase your income
- Start a side hustle to make more money quickly
- Create and stick to a budget that avoids overspending
- Start an emergency fund to use when the unexpected occurs
Can I Get a Title Loan if I Have an Outstanding Car Loan?
Most title lenders require you to own your car without any loans. However, you may get approved if you only owe a small amount and there is enough equity in your vehicle to pay off the loan and provide the cash you need.
Can I Get a Title Loan Without a Job?
Yes, title lenders don’t require that your income come from a traditional job. It may count as long as you have a steady income from a reliable source. A few examples include:
- Social Security income
- Disability income
- Retirement income
- Workmen’s compensation
- Investment income
- Side hustle income
Final Thoughts
Financial emergencies are scary, but there is always help available. If you’ve exhausted all options to handle your situation, emergency car title loans can get you out of your bind. You don’t need perfect credit or even a job to get approved. As long as you have a car with no liens and steady income, you may borrow against your car’s value and receive funds no later than the next business day after approval.
At Swift Title Loans, we make the process simple, seamless, and fast so you can get back to taking care of your emergency without the stress of where you’ll get the funds.
