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Can A Car Be Used As Collateral?

In many cases, when lenders are loaning money to their customers, they want some form of security or collateral. They need to know that they are going to be getting paid back. This is why you will see all sorts of credit checks and it is why you will see a loan secured against property, like a mortgage.

But, what about other types of security? Can you secure a loan against other valuable property? Can a car be used as collateral? Well, the quick answer is yes. Here is what you need to know about getting a car title loan using your vehicle.

How To Find Out Can A Car Be Used As Collateral

Like we just said, if you are wondering can a car be used as collateral, the answer is yes. If you find yourself needing help with emergency expenses, you can get yourself an auto title loan easily. This loan is designed to help you out with emergency expenses like medical bills or emergency travel.

When you get a title loan, you will use your vehicle’s title as collateral – which is the document that says you own that vehicle. Here at Carolina Title Loans, Inc., we can loan between $601 and $15,000. The amount that you can borrow is based on how much your vehicle is worth. This means we will quickly inspect your vehicle to determine its value.

When Can A Car Be Used As Collateral?

When it comes to getting a car title loan from Carolina Title Loans, Inc., you don’t have to wonder can a car be used as collateral. But while you can use your vehicle – and its title – for this loan, there are certain things you have to keep in mind.

The big one is ensuring that you have a lien-free title to your vehicle. This means that any financing on your vehicle should have been paid off. There should be no other charges against the vehicle either. If you aren't sure whether there is a lien on your vehicle's title, then talk to the DMV.

It should probably go without saying that your vehicle's title has to also be in your name. After all, you are using your vehicle’s title as collateral. You are using it as evidence that you can pay that loan back. If the title is not in your name, you must have it transferred over at the DMV.

Finally, your car has to be in pretty decent condition. Remember, while we are using your vehicle’s title as collateral, we base how much we can give you on your vehicle’s condition and value. That means you want to make sure the car doesn’t have major damage.


car title loan online


How Does Using Your Car As Collateral Work?

So, now you know the answer to 'can a car be used as collateral?', there are a few things you need to know about this kind of loan. Contrary to what you may think, when you take out a car title loan, you won't be leaving your vehicle in our possession.

For the duration of the loan, you are free to drive your vehicle. We will keep hold of your title. Our process is pretty smooth too. Most people can get through the inquiry process for a title loan in under an hour. In the vast majority of cases, people will have their hands on the loan cash in under one working day if they are approved.

Our process starts by filling in a form on our website. Once we have received your inquiry, one of our loan representatives will get in contact and set up a meeting for you to either come to one of our nearest title loan locations or have us come to you.

We will also tell you how these secured loans work and invite you to ask any questions that you have about car title loans. When we set up the meeting, we will also remind you that you need the following to get a title loan from us:

  1. Your vehicle for the inspection.
  2. A lien-free title to your vehicle.
  3. A driver’s license or valid government-issued photo ID.

During the phone call, we will ask you where you want the vehicle inspection carried out. You can then head to the agreed-upon location where one of our team will give your vehicle a look over. We will also evaluate your other items and information to determine if you qualify for approval.

If we can determine you do qualify, then all that is left to do is get you to sign some loan documents. This is where you can ask any questions and we will go over all the loan terms – including your repayment schedule. Once you finish signing, you can get the cash either on the same day or the next bank business day.

Considering A Car Title Loan? Come See Us

There are many advantages to getting a title loan from Carolina Title Loans, Inc. when you need help. Firstly, our process is quick. As we mentioned, the inquiry process can take under an hour. You may even be able to receive the cash the same day or the next bank business day.

This means car title loans are an option for those that need to borrow cash in an emergency. We don't even have any minimum income or even employment requirements. As a result, we are often used by those people that are claiming certain benefits or are temporarily unemployed.

Don't have a checking account? This is not a problem either, since we do not require you have one. Finally, bad credit is not a problem. One of the perks of a car title loan being a secured loan is that credit score becomes less of a focus. What matters most is the value of your vehicle.

Use Your Car As Loan Collateral Today

Can a car be used as collateral? Absolutely. Assuming that you have a lien-free title to your vehicle, then you may be able to get a car title loan with us. If you need funds to cover a financial emergency, get in touch with us today. Just fill out the online form now to get started. 

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

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.