Applying for Online Title Loans Can Be Simple and Quick
Life can be unpredictable, and accidents are bound to happen. If your vehicle gets severely totaled in a car accident, the title may have an ‘R’ placed on it, which signals that it has suffered damage, but is considered reconstructed now. This situation can make selling your vehicle challenging because people may want to avoid purchasing a car that experienced a collision, even if you fixed it up.
If you need help paying for an emergency, you may wonder if you can apply for a title loan with a reconstructed car. The answer is yes– you may still be eligible for funding! Title loan lenders care about two crucial factors during the inquiry process. As long as your car has value and you can show proof of a steady income, applying for this option can be simple.
Traditional loan options may not be the best choice when you need money quickly. If you do not have a decent credit score, the interest rates could be high and tough to deal with. Some online car title loans can offer funding to qualified borrowers within the same business day! Read on to learn more about how to use a reconstructed car to apply for a car title loan.
How Do Car Title Loans Work?
Before applying for a car title loan with a reconstructed vehicle, it’s best to understand how this option works. Title loans allow you to use your car as collateral for funding. Lenders consider how much equity a car has when determining approval and if you have a steady income. Lenders place a lien on the vehicle title during repayment if you can obtain approval for a title loan.
Traditional bank loans are considered unsecured because they don’t rely on physical collateral during the agreement. Instead, they look at a person’s credit history to determine approval. If your credit score is too low, this can indicate that you’re financially irresponsible, and they may deny your request. Title lenders will check credit history during the approval process, but there are other approval factors.
Title loans are secured because they rely on collateral when giving out funding. Lenders can repossess your car and sell it for profit if you fail to pay your title loan back. The circumstances around title loan car repossession can vary depending on where you live, but it’s essential to keep in mind if you borrow funding.
The best way to avoid car repossession during a title loan agreement is to pay your loans back on time! You can set up an automatic withdrawal from your bank account to ensure you never miss a payment. This option is excellent if you need help remembering when to pay bills.
How Much Cash Can I Get With a Reconstructed Car Title Loan?
The cash you can get with a reconstructed car title loan will depend on the vehicle’s value and the loan terms. Lenders look at how much car equity you have during the inquiry process because this can affect loan amounts. Generally, you can borrow up to 50% of the vehicle’s value, but this number can vary. Some lenders may offer higher loan amounts, and the terms and interest rates may vary.
Car equity is the difference between what a car is worth and how much money you still owe on it. Essentially, it’s the amount of money you would get for the car if you sold it today. A car’s value increases when you make payments toward the loan. Alternatively, when the car’s value goes down, the equity decreases. Even if your car has been reconstructed, however, it could still have value. You could use your reconstructed vehicle to apply for a car title loan today!
The best way to determine how much cash you can get from a title loan with a reconstructed car is to begin the inquiry process online or over the phone with a title loan agent!
Inquire About a Title Loan With a Reconstructed Car Today
Life is full of surprises. Some can be good, while others may be challenging and expensive. If you need help paying for an unexpected cost, applying for a title loan could be the answer! If you meet the other requirements, you can use this option with a reconstructed car. Having a vehicle with positive equity is crucial, and so is showing proof of steady income.
Typically, you can start the application process for a car title loan online or over the phone! It can be easy to use a reconstructed car to apply for a car title loan. Contact LoanMart to learn more.