Do Title Loans Have an Age Requirement?
A car title loan can be a tool to consolidate debt or take care of your financial needs. You would only need to use your vehicle title as collateral to secure the funding you need for an emergency. You might be wondering- How old do I have to be to get a title loan?
You cannot apply for a title loan if you’re not a legal adult. Typically, a legal adult in the United States is a person that is at least 18 years of age or older. If you’re around that initial age, a title loan can sound great if you need money to cover an unexpected expense! But it’s important to reconsider getting an auto title loan if you’re that young.
Generally, people before the age of 18 don’t have the income to support a title loan. Not to say that they are expensive, but you would have to make monthly installments to pay off a car title loan. If you miss payments and fail to repay the loan, a lender repossessing your vehicle is the least of your worries. Defaulting on a title loan could also harm your credit score, which is something you don’t want to have this early in your life. Be mindful of your financial decisions!
Don’t let these things intimidate you, though. You can only receive approval for a title loan if you have a reliable income. Be conscientious of the responsibility you have with making payments on time. If you feel confident enough to manage a loan in full, then you could inquire about one today.
Read below to learn more about title loans and how you could acquire one.
How Does a Car Title Loan Work?
Although you have gotten the answer to “How old do I have to be to get a title loan?” You may not exactly know how a title loan works. As you may know, a title loan is a way to borrow money using your car’s title as collateral. It can allow you to access the positive equity in your car and turn it into cash you can use!
Unlike traditional loans, auto title loans do not have a complicated approval process. Since you use collateral to secure the loan, a title loan could be relatively simple to qualify for as a borrower with a poor credit history. Instead of relying on your credit score for loan approval, most title loan lenders will take a look at your car’s value and your income. In fact, your loan amount and eligibility are dependent on those two factors!
Using collateral makes the loan secure, which could offer plenty of benefits to you as a borrower.
Secured loans could offer you these advantages:
- Larger Loan Amounts
- Quick Funding
- Lower Interest Rates
Speak to a title loan lender or provider if you have questions about how a title loan works. While you’re at it, you can ask them if you meet the previously mentioned requirements to qualify for funding.
What Can I Use My Auto Title Loan Funding For?
Financial hardship can happen to anyone, no matter the circumstances. Even as a young adult, you may already be facing tough financial decisions you need assistance with! A title loan can be the answer if you are trying to get yourself back on your feet.
Take a look at some of the common ways a borrower may use their funds from a car title loan:
- Wedding Costs
- Medical Expenses
- Home Repair and Maintenance
- Veterinarian Bills
- Funeral Costs
- Emergency Travel Costs
- Consolidating Debt
- Unexpected Bills or Expenses
While not every borrower has the same situation, a title loan can cover a variety of financial emergencies! An auto title loan may be the perfect solution for your financial needs if an unexpected expense appears or a bill may be too costly to cover.
How Old Do I Have to be to Get a Title Loan, and Where Can I Apply?
Choosing the right title loan lender as a young adult is essential. But no matter which lender or provider you choose, applying for a title loan can be simple. You might only have to take a few minutes to get through the entire approval process! But if you work with loan options like a car title loan serviced by LoanMart, the application process can be simple and convenient. Just follow the three-step process to receive funding:
- Inquire About a Title Loan Online or Over the Phone
- Submit a Few Required Documents
- Collect Your Money if You Qualify!
Contact a title loan agent for further information.
Are you ready to get the funds you need for an emergency? Again, no matter which title loan lender or provider you choose, you could get money in no time! Speak to a title loan representative to begin the approval process today!