How Do Title Loans Work With Motorcycles, Trucks and Other Vehicles?

When unanticipated or emergency expenses come up, you may need a way to get money fast. And if you have a vehicle to use as collateral (something you offer to a lender as a promise to repay a loan), you could be eligible for a title loan. You might be surprised to learn that title loans aren’t only for cars, but also motorcycles, trucks, and other vehicles. Here we’ll be answering what you’ve probably been asking yourself, how do title loans work?
What is a title loan?
If you own your vehicle, you may be eligible to borrow against the vehicle’s value in what’s called a title loan. Title loans are secured loans, meaning you offer collateral (your vehicle’s title) to secure the loan. This means the lender can repossess your vehicle as payment if you fail to pay back the loan on the established terms.
What are the benefits and risks of using a title loan?
A title loan may be able to provide you the benefits of:
There are also some downsides to using a title loan, including:
How do I qualify?
Lenders offering title loans generally have a short list of requirements. Lenders want to see that you own the vehicle outright and have access to its lien-free title. Lien-free means that you don’t have any existing loans on the vehicle or any parking tickets or other fees. If you meet that requirement, lenders often don’t check credit scores or income, making title loans reasonably simple in terms of qualifications.
What should I look for in a title loan?
As with any loan, you’ll want to shop around with vendors as some title loans are more favorable than others. Look for a loan that:
If you’re in a bind and need money fast, title loans for your car, motorcycle, or truck are just one option. Depending on your credit score and income, you may be eligible for other types of loans, as well. Before making a commitment to a title loan, make sure you have a solid plan in place for paying back the loan so you won’t lose your vehicle in the process.
Notice: There are a wide variety of loan products available in the marketplace, so your choice of lending products should match your financial needs. Small-dollar loans used over a long period of time can be expensive.
Source: iQuanti, Inc.