Understanding Financing Terms

Got An Older Car But Need A Title Loan? What You Should Know

You may be thinking about seeking a title loan to help you deal with a financial emergency, but you may not be sure what your options are. This could be particularly true if the vehicle that you own is older. You may believe that your car is just too old to qualify for a title loan. There are many different vehicles that qualify for title loans. Here's a look at some of the things that you should know about getting a title loan on an older car.

Can A Car Be Too Old For A Title Loan?

The big question is whether or not a car can be too old for a title loan. The truth is that the age of a car doesn't have any effect on title loan eligibility. Car title loans aren't based on the age of a car but are instead based on the value of that car. That means that an older car that's still in good condition can still easily be eligible for a title loan.

Can An Old Car Be Worth Anything?

When you apply for a title loan, the amount you are eligible for is based on two primary factors. The first is your income because that dictates your ability to repay the loan. The second is the vehicle itself. The lender will only allow you to borrow up to the value of the vehicle.

You might wonder if you can really qualify for much with an older car. You can if the car is in good condition, has low miles, or is considered a classic. The higher the market value for the vehicle, the better your chances of getting the loan that you need.

What Do You Need To Apply?

If you have decided to seek a title loan with your older car, it's time to gather everything that you need. The first and possibly most important thing you'll need is the car's title. You must have a clear title in hand for the car to be eligible for a title loan.

You'll also need proof of your income. A couple of recent pay stubs should be sufficient. Your lender will need to verify that you make enough to repay the loan, and those pay stubs are the best way to do so. 

You'll also have to show a valid driver's license and social security card to secure the loan. Both of these are important for proof of identity. This validates that you are actually the owner of the car.