Emergencies and unexpected bills mean you need cash quickly—waiting for your next paycheck isn’t an option, and you don’t want to go through a bank or other traditional lender.
Whether it’s bad credit or the amount isn’t enough to justify a bank loan, you’re scrambling to find another option. What about applying for a title loan? The process is relatively quick and easy, and you can even get a title loan online in Texas.
Yes, the Lonestar State is making it even easier for you to borrow the money you need against your vehicle’s title. Ready to get started? Here’s what you need to know about online title loans.
Types of Vehicle Title Loans
Okay, there are different types of title loans in Texas. We’re not referring to interest rates; we’ll get to that in a little bit. Instead, title loans are not limited to standard vehicles like trucks, SUVs, and passenger cars. You can also get a title loan on a motorcycle.
However, the type of vehicle does affect loan amounts. For example, you’ll probably be approved for a larger loan amount with a car title than for a motorcycle. This isn’t saying it’s not worth getting a motorcycle title loan, only that the amount will most likely be less. This is something to consider, especially if you need to borrow more than the motorcycle’s blue book value.
A quick explanation of blue book values may be necessary: the blue book value is what lenders refer to when you put a vehicle up as loan collateral. The vehicle’s value is determined by a few factors like age, mileage, make, model, and overall condition. For example, a newer model vehicle with limited mileage will probably have a higher value than an old beater car.
Don’t necessarily discount using your motorcycle as collateral. Some newer motorcycles, like a 2023 Harley-Davidson, may be worth more than some passenger cars. This can mean a motorcycle title loan is enough to cover your sudden expenses.
Employment and Credit History
Some people panic instantly when they hear credit history—but don’t worry! Your credit history isn’t a factor in whether or not you’re approved for a title loan in Texas. Actually, no one’s going to waste time checking your credit history report in this situation.
So, if yours is at a number you’d rather not think about, there are no worries. You also don’t have to worry about a credit check dinging your score.
Yes, some types of credit checks can automatically shave a few points off of your score. This includes credit checks from title loan companies.
When it comes to your employment history, you don’t always need to have a job for loan approval. However, before you start filling out the first online application popping up on your screen, do a little homework.
Some title loan services do require proof of employment. In this case, have a recent pay stub handy. Other title loan companies don’t care about your employment as long as you meet the other qualifications.
However, you may want to be a little wary of places that don’t require current employment. You may be looking at sky-high interest rates. Your vehicle can also influence whether or not employment is a necessary qualification. In any case, it’s a good question to ask before starting the loan process.
Title Loan Approval Requirements
So, even if your credit score is less than stellar and you’re unemployed, you can still qualify for a title loan in Texas. However, there are some qualifications you can’t avoid.
You must be the vehicle owner and listed on the title. Your name must be the only one on the title. In other words, you must be the vehicle’s sole owner. If your parents or a spouse is also on the title, you can’t use that vehicle as loan collateral.
Why, you might ask? The answer comes down to legalities. If you default on the loan, the service can’t repossess your vehicle if it’s also owned by someone else. In simple terms, the loan company will be guilty of theft. They’re essentially stealing the vehicle from its partial and/or rightful owner.
If you’re under the age of 18, your loan application will automatically be denied, even if you have a great credit score, are employed, and are the sole vehicle owner. Texas law is pretty clear. Only adults can apply and receive a title loan.
You must also have a valid Texas driver’s license and be able to provide proof of address. While it’s not written in stone, your address should match the one on your driver’s license. To provide proof, submit a copy of a utility bill or bank statement. A letter from a friend or relative isn’t going to count as proof.
The Online Application Process
You’ve found a title loan site that meets your requirements. Now, it’s time to start the online application process; thankfully, it’s fairly quick and easy. Sometimes, it’s harder to set up a Facebook or email account than to complete the online loan process.
Fill in the supplied fields, but don’t worry; the title loan company is only asking for basic information. You know things like your name and address, and your vehicle information is next, including the year, make, model, VIN, and mileage. You may also need to upload photos of your vehicle. You can do this when you upload your license photo and vehicle title.
Make sure everything is filled out—and don’t skip a field; it only causes a denial and sends your application back. Now, sit back and wait for a response; most people learn if they’re application is approved within one business day or sooner.
If approved, select how you want to receive your loan amount; most people prefer a transfer to their PayPal or bank account. Another option is to wait for a check to arrive by mail, which may potentially come with additional fees.
Go Online and Find Out if You Qualify for a Title Loan
If swift financial assistance is a necessity, opting for an online title loan application could be the most efficient solution.
By meticulously adhering to the application guidelines, you increase the likelihood of a same-day response and streamline the process, potentially accelerating the receipt of funds.