Can I Use My Car as Collateral for a Loan?

A situation has arisen, and you need cash — fast. The problem is you don’t qualify for a bank loan, and your buddies are tapped out. What to do? Well, all you primarily need for a title loan in Texas is income and a vehicle. Here’s how you can use your car as loan collateral for a title loan in Texas. The process is quick and easy.

What is a Title Loan?

These are primarily short-term loans — typically 30 days or less — that are secured by a vehicle you own outright. In addition to a car or truck, “vehicle” can also mean a motorcycle or RV.

Because the loan is secured by your vehicle, loan approval odds are very good. However, you could lose your collateral to forfeiture if you fail to repay the loan. So, be certain you can do so before taking a loan out.

How Much Can I Borrow?

Your offer will primarily depend on your vehicle and your income. The title company will make its decision based on the make, model, mileage, age, and general condition of your car. Any alterations or modifications will be factored in, as well as the vehicle’s style. You may be provided a loan calculator that you can use to get an idea of what you might be offered.

For a title loan in Texas, the lender will also want to view your vehicle. But in lieu of an in-person inspection, it will require you to submit recent quality photos from all angles, plus shots of the interior. Be sure to include a photo of the vehicle ID number and odometer.

Regarding your income, the lending company will want to be sure you can repay a loan. Flexible repayment options may be available. For those who are employed, pay stubs or bank statements will suffice.

A job is not required, however. In Texas, another source of steady income could work as well. Those sources could include, for instance, rental income, Social Security, settlement income, income from a retirement account, alimony, Worker’s Compensation, self-employment, child support, or disability.

You’ll also need to be at least 18 and have a driver’s license or other government-issued photo identification such as a passport. You must show proof of residence, which could be a lease agreement, mortgage statement, or utility bill. 

While the lender may pull your credit, it won’t focus on your rating. In fact, those with bad credit are commonly approved. Your vehicular collateral is generally sufficient, along with regular income.

How Fast Can I Get Cash?

Whether you’re applying from Dallas, San Antonio, or Houston, your application can be completed totally online — a time saver off the bat. Or you can speak with a loan agent. Once you’ve submitted your application, plus any required materials, you’ll likely hear back that day. After you’re approved, cash can be in hand the next day.

Your options for receiving your funds may include an ACH transfer to a bank account, direct deposit on a debit card, or an overnight check. Some lenders will allow a pick up at a local money transfer location. Loan payments can be made at any MoneyGram location in Texas.

The bottom line is that title loans in Texas and elsewhere can help you out of a major jam. Your vehicle is on the line, though, so be sure you can repay the loan before you take one out.

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