What are Title Loans and How Do They Work in Texas?
Are you a resident of Texas looking for more information about car title loans? You may have been hit with an unexpected expense or bill, and you need fast cash to get back on your feet. While a title loan can be a great resource to consider, you may want to know more about how the process works before you sign on the dotted line. Fortunately, title loans can be simple and straightforward!
Car title loans are short-term installment loans that can allow you to access a portion of your vehicle’s value. To do that, you will need to use your car title as collateral for the loan! Essentially, through a car title loan, you can borrow a percentage of your car’s equity and turn it into cash you can use. But what does that process look like? How do title loans work in Texas?
If you are a Texas resident looking for funding through a car title loan, keep reading to learn more about the ins and outs of title loans in Texas!
How Do Title Loans Work In Texas, and Do I Need to Give Up My Car?
The number one question that title loan borrowers have is, “Do I need to give up my car to get a title loan?”
If you are wondering how title loans work in Texas, you may have concerns about the status of your vehicle after you sign your loan agreement. However, just because you qualify for a title loan does not mean that you need to give up your normal driving habits!
When you use a car title as collateral for a loan, you allow a lender to place a lien on your title. This lien is the lender’s legal right to access the asset if you default on the loan and choose to not repay it. However, this lien is removed once you fully complete your monthly installments. If you make your payments on time, you can continue to drive your car like it is business as usual! No need to give up driving to work, carpool, or your daily Starbucks run.
What Do I Need to Qualify for an Auto Title Loan in Texas?
Title loans can be called a few different names, such as an auto equity loan, auto title loan, or even a pink slip loan. However, to apply for them, you will need to meet a few requirements and provide some documents to a title loan agent. The initial requirements for most car title loans are:
- Age Requirement: One of the ways title loans work in Texas is through age requirements. You must be at least 18 years of age or older to qualify for a title loan, since it is a huge financial decision.
- Income Requirement: So, for a title loan, you do not need a traditional office job to apply. However, you will need some proof that you can afford to repay the title loan. You will need to provide documents and proof that you have a steady source of income or alternative income.
- Vehicle Requirement: To apply for title loans in Texas, you will need a qualifying vehicle. That is because the car is the collateral for the loan, so it must have a certain amount of equity to borrow from! Without enough positive equity, you will not ve able to obtain approval. That’s just how title loans work in Texas!
Now That I Know How Title Loans Work in Texas, How Do I Apply?
Applying for a car title loan in Texas does not need to be a hassle. In fact, some title loan options can make the process simple and easy! If you can get your groceries online through your phone, why not apply for a title loan with your smartphone or computer?
Take advantage of an online application process as a resident of Texas!
Take a closer look at what the inquiry process looks like:
- Apply using your smartphone or computer. Just call a title loan agent and learn more about the process, or get started on your inquiry online through the preapproval form.
- Submit a few documents along with your application! If you obtain preapproval, a title loan agent will reach out to you and request a little bit of paperwork. You will need to send documents like proof of income/ residence, car title, and recent photos of the car along with your valid government or state-issued ID.