Can I Use My Car as Collateral for a Loan?

Can I use my car as collateral for a loan? That's a question we've all asked at least once. Life gets us down, and we have to think of quick solutions to major financial problems. So, why not consider trading the titles to our cars for the money we need? It makes sense.

But what are the rules, and is that even allowed? Some places don't consider your vehicle as a valuable asset because of depreciation and other factors. Do lenders accept your car title for cash, or is that a falsehood for those who can't get a regular bank loan? The answers might surprise you.

All You Need to Know about Using Your Car as Collateral for a Loan

Why Can I Use My Car as Collateral for a Loan?

You can use your car as collateral for a larger or smaller loan because your car has value, especially if there's no lien on the title. Vehicles can be used and reused many times, so they're considered a liquid asset. Therefore, some lending companies are willing to trade cash for temporary ownership of the title.

That means big money in your pocket fast, but only if your vehicle has a decent value. So, be sure to clean it up and make any necessary repairs if you can. The loan company won't keep your car, but it will consider those things in the evaluation.

DID YOU KNOW: You can keep possession of your vehicle as long as your car title loan remains in good standing.

How Can I Use My Car as Collateral for a Loan?

Using your car title as collateral for any kind of loan requires several steps. However, each step is designed to be as quick and painless as possible. Your vehicle is inspected and evaluated, and then your application is reviewed. If you meet each of the requirements, you can get offered as much as $15,000 in exchange for temporary document ownership.

Here's how the process goes:

• Make sure you meet the minimum title loan requirements.
• Apply, and then an agent contacts you with more information.
• Drive to the location and work with your agent to complete the rest of the process.
• Get paid an agreed amount in as little as 30 minutes.
• Take care of business without having to worry about money right now.

Increase your chances of getting approved today by clearing your schedule for an in-office consultation. Also, try to apply as early in the day as possible and attempt to initiate the process early in the week or away from bank holidays to avoid unnecessary delays.

DID YOU KNOW: You can change the name on a car title by going to your local DMV.

When Can I Use My Car as Collateral for a Loan?

You can use your vehicle title as loan collateral if you're able to prove that you're the owner. You must also show that the car is paid off in full, with no active or pending liens on the title. Also, you must be at least 18 years old to qualify for this type of financing in Missouri.

You will be asked to provide identification at some point in the transaction. And while you won't have to jump through a bunch of red tape as you would with a traditional bank, you still have to produce some basics to get a Missouri title loan, such as:

• Your driver's license or a government-issued photo ID
• The lien-free title (in your name)
• The vehicle for a rapid appraisal by your agent

You can submit your request online or over the phone for more convenient processing.

Where Can I Use My Car as Collateral for a Loan?

Missouri Title Loans, Inc. is one of reputable lenders offering auto title loan services with an easy application process. With a convenient online intake form and rapid responses, you can get in and get out with your money in a matter of minutes.

Get Started Today!

Yes, you can use your car title as collateral for a loan, even if your vehicle isn't fancy. Best of all, it doesn't matter if you have a low income or a bad credit score. The title itself and the car's value are what determine your eligibility anyway.

You can get the cash you need today if you call us directly or submit a short inquiry form on our website!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.