So, something unexpected has come up and you need cash – fast. Unfortunately, you’re ineligible for a bank loan, and a payday loan won’t work either. However, you do have a vehicle, so you’re interested in what’s called a title loan. But as an Old Dominion resident, you’re probably wondering: how do I apply for a title loan in Virginia?
Read on.
What is a Vehicle Title Loan?
A title loan is simply a loan that’s secured by your vehicle. In other words, the loan uses your car, truck, or other vehicle as collateral. Because of this, approval rates are high, when compared with other loan options. And most title lenders, including those in Virginia, don’t check credit scores.
How Do Such Loans Compared with Other Options?
Because personal loans typically are not tied to collateral and are generally based on credit scores and one’s payment history, they’re not available to everyone. And even if you do qualify for a bank loan, the approval process will likely take more time than you have right now.
Then there are payday loans – short-term loans that can provide a few hundred dollars until you get your next paycheck. The problem is you may not be able to repay the entire loan when you get paid – IF you can get the amount you need – without undue stress. Another potential problem is interest that can hamper timely repayment.
Your other option is to get a family member or friend to help you out. That can be easier said than done, plus the fact that such loans can hurt the relationship, even if you can get one.
What are the Advantages of Title Loans?
We’ve mentioned a few but let’s list them:
- Quick cash. You need cash right away. There’s a good chance you’ll be able to get a vehicle title loan within 24 hours after approval.
- Competitive rates. Interest rates are based on existing market conditions. Title loan lenders wouldn’t be able to stay in business if rates were onerous.
- Longer time to pay. As we say, payday lenders want all their money back when you get paid. With title loans, you’ll have more time for repayment.
- Affordable payments. Because title loan payments are generally affordable, you may even be able to establish an emergency fund so that you won’t need a loan the next time something unexpected happens.
What About Getting a Title Loan in Virginia?
For one thing, you can likely apply online – and send required documents — from the comfort of your home.
Also, while some title loans in Virginia may be more difficult to get than in some other states, there are lenders there that will offset such challenges. How? By offering rewards for each timely payment. In fact, with such lenders, whenever an on-time payment is made, your interest rate may sometimes drop as you decrease your balance.
This could reduce your costs significantly as you repay your loan.
And, no, you do not need good credit in Virginia to get a vehicle title loan. Not only that, but you can continue to drive your ride while you’re making payments. Once your loan is repaid, you’ll get your title back.
What’s more, you’ll likely be able to get more funding in Virginia, allowing you to meet all your needs. As you likely know, payday lenders won’t offer more than you can repay with your next check. If you go through a bank and your credit is not up to snuff, you may not be able to procure the amount you need – if you are approved at all. Virginia residents who have sufficient equity in their vehicles and the means for loan repayment have a great shot at getting the amount required, if not more.
Ultimately, applying for a title loan in Virginia can work out very well, provided you have a clear title and the income to pay the loan back.