If you’re interested in getting a loan to cover emergency cash needs or to pay off accounts with high-interest debt, like credit cards, that's threatening your finances, and traditional banking loans are not an option, you might wonder whether you can get a loan using your vehicle as collateral.

Car title loans can be used as emergency resources that provide borrowers emergency funds of up to $15,000 in a secured loan where the lender puts a lien on your vehicle and uses it as collateral. The process between a lender and a borrower relies on some kind of collateral that the lender can repossess, securing the loan.

The rest of this article will walk you through how title loans work and whether they’re the right choice for your financial emergency.

What Is A Secured Credit Car Title Loan?

Title loans are a type of secured credit loan using a vehicle as collateral. If you need to access personal loans for financial assistance but can’t find a good rate or get qualified for various reasons, then short-term loans (like a title loan) might be the way to go. As a rule of thumb, you should only rely on vehicle title loans if you’ve exhausted other unsecured financial options.

Secured loans require collateral or something of value that you own that can be used to repossess if you fail to repay the loan. As such, secured loans are more forgiving when it comes to credit and borrowing history, although we can not promise ‘no credit checks.’ When determining approval, a title loan company may still turn you down based on credit.

Putting up collateral tilts the loan risk factor of the loan towards you, so lenders tend to be more forgiving and offer lower rates. To use your car as collateral to apply for an express auto title loan, it must be paid in full. This is because the lenders providing you with the loan will put a lien against the value of the car, only to be removed once your loan is repaid in full. If you already have a lien on the vehicle, the lender cannot place another lien to secure the title loan.

When Should You Use Your Car Title For A Collateral Loan?

Using your car as collateral is an option, albeit one that you should think about carefully, that can help you pay for emergency repairs, expenses, or bills.

Vehicle title loans often offer loans of up to $15,000, but the amount will vary based on your vehicle. This is determined by checking your car’s make, model, age, and repair history, among other things. You might consider a title loan if your credit is poor or nonexistent, or if you’re having trouble getting a personal loan.

Secured loans using a vehicle as collateral come with a small degree of risk, so be sure to select an active plan to help you stick to the repayment schedule the lenders have set up for you. 

How Car Title Loans Work

If you need money fast, you might be considering a title loan or some type of collateralized financing. That is when Tennessee Title Loans, Inc. can help! With a fast and efficient loan process, you can borrow up to $2,500 in title loan funds.

You’ll need a valid I.D., such as your driver’s license, the lien-free title to your vehicle listed in your name, and the vehicle itself, for a quick inspection to determine its value, and therefore, the loan amount you can borrow. If you can provide those requirements, a representative will look at your documents and vehicle to make sure it is all in order and let you know if you qualify for the loan. If so, you can get your money as soon as, later that day, or on the following business day.

Of course, you can keep your vehicle while you apply for loans using a vehicle as collateral, and you are still able to apply even with a bad credit history. We welcome all credit types to apply, good credit, bad credit, and even non-existent credit.

The Easy Steps For Title Loan Approval

Find out how to start the process of getting Tennessee title loans by using your vehicle as collateral. 

• Fill out the online form and wait for a representative to contact you.
• During the call, you can schedule a meeting so that the representative can view your documents and inspect your car.
• Once your I.D., title, and proof of income are verified, the representative will inspect your vehicle and determine if you qualify for approval.  
• If so, agree to the policy terms, interest rates, and fees by signing your offer, and you’ll get the money either the same day or the next business day.

Get Started On Your Emergency Title Loan Today!

If you need cash fast and your only option is to secure the amount you borrow with collateral loans, consider getting a title loan from Tennessee Title Loans, Inc. With our help, you can use your vehicle as collateral to get a loan even if with poor credit. We welcome all credit types to apply for emergency cash title loans.

Fill out our online inquiry form and find out if your vehicle qualifies for a collateral loan today! Our loan representatives are waiting to receive your request. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.