If you own your vehicle outright, you may be wondering if you can use your car as collateral for a loan.
The short answer is yes, a qualifying car title may be used as collateral for a title loan.
That does not mean every vehicle or every borrower will qualify, but it does mean your lien-free car title can be an important part of the review.
With Missouri Title Loans, Inc., a title loan uses a lien-free vehicle title as collateral while you continue driving your car during repayment.
This guide explains how a car collateral loan works, what items you generally need, and what to review before signing any agreement.
Can You Use a Car Title as Collateral for a Loan?
Yes, you may be able to use a car title as collateral for a loan if you own the vehicle outright and the title is lien-free.
A lien-free title usually means:
- The vehicle is paid off
- The title is in your name
- No active lender is listed on the title
- The title matches the vehicle being inspected
Your car has value, and that value may help determine the amount available if you qualify.
However, submitting an inquiry does not guarantee approval, a specific loan amount, specific terms, or funding.
What Is a Car Collateral Loan?
A car collateral loan is a common way people describe a loan that uses a vehicle or vehicle title to secure the agreement.
With Missouri Title Loans, Inc., the product to review is a title loan.
That means your car title helps secure the loan, but you can generally keep driving your vehicle while making payments.
This can be helpful if you need your car for work, errands, school, appointments, or family responsibilities.
Just remember that the title still secures the agreement. If payments are missed, there can be serious consequences.
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.
Can You Keep Driving Your Car?
In most cases, borrowers can keep driving their vehicles while making payments.
That is one reason people ask about using a car title as collateral for a loan.
You may still need your vehicle for:
- Work
- School
- Errands
- Medical appointments
- Grocery trips
- Family responsibilities
Just keep in mind that your car title still secures the agreement.
Before moving forward, make sure the payment schedule fits your budget.
Get Started Today!
Using your car title as collateral for a loan may be one option to review if you own your vehicle outright and have a lien-free title in your name.
Missouri Title Loans, Inc. can explain the current title loan process and help you understand what may be reviewed.
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!
Frequently Asked Questions
Can I use my car as collateral for a loan?
Yes, you may be able to use your car title as collateral for a loan if the title is lien-free, in your name, and the vehicle is available for inspection.
What is a car collateral loan?
A car collateral loan is a loan that uses a vehicle or vehicle title to secure the agreement. With Missouri Title Loans, Inc., the product to review is a title loan.
What do I need for a Missouri title loan?
You generally need a state-issued photo ID, a lien-free car title in your name, and your vehicle for inspection.
Does my vehicle need to be paid off?
Yes, the title generally needs to be lien-free. That usually means the vehicle is paid off and no active lender is listed on the title.
Can I keep driving my car?
In most cases, borrowers can keep driving their vehicles while making payments. The title still secures the agreement.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
