You’ve found yourself in a situation in which you need a quick infusion of cash. A bank loan is a nonstarter, and you’re about out of options. Well, if you have a car and regular income, you likely can get a vehicle title loan, and without having to give up your ride. You may be wondering whether you can get a title loan in Virginia. Yes, you can. Here’s what you should know about Virginia title loans, as well as those available in other states.
In this article
Explain Title Loan
These are short-term loans typically of 30 days or less, although longer terms are sometimes available.
Note that if you get such a loan, it will be secured by your vehicle’s title, which must be in your name and lien free. A key feature is that, unlike pawn loans, you get to keep your vehicle while you’re making loan payments. By the way, depending on the lender, “vehicle” can mean car, truck, boat, RV, or motorcycle.
Because the lender holds your title until the loan is repaid, loan approval rates are high. However, that also means should you default on your loan, your vehicle is at risk of seizure. So, be certain you can repay the loan before taking one out.
How Much is Available?
The amount varies among title lender companies and can also hinge on where the lender is located, as state governments regulate the industry. However, most loans are for between 25 percent and half your vehicle’s value. The lender establishes value based on the make, model, condition, mileage, and age. Trim level, alterations or modifications matter as well.
The loan size also depends on your income and loan repayment ability. You may be able to borrow more than you would at a bank since those loans are usually unsecured and based on your credit history. While some title loan lenders will pull your credit report, they usually won’t base decisions on it. This is a huge advantage for those who are ineligible for a bank loan, which would likely take too long to process anyway.
Generally, though, loans usually range between $100 and $10,000.
What is Needed for a Loan?
In addition to possessing a vehicle in your name and lien-free title, you must submit proof your income is sufficient for loan repayment. Pay stubs or bank statements will suffice here. If you are not employed but have other monthly income – from a pension, disability, a rental property, Social Security, etc. – that’s acceptable as well.
Instead of taking your vehicle in for an appraisal, all that is required are recent photos of it from all angles, plus shots of the vehicle identification number and odometer reading. In Virginia, you will also need proof of residence (leasing agreement, utility bill, etc.) and be at least 18 years old.
How Soon Can I Get a Loan?
Once you’ve finished your online application and submitted the necessary materials, you’ll likely get a decision that day, if not within minutes. After you’re approved, funds are usually available by the next day, via a wire transfer, direct deposit, or in-person pickup. If you prefer direct deposit, make certain you have your account set up for ACH transfers prior to applying.
So, yes, you certainly can get a vehicle title loan in Virginia. You now know what’s required and the timeframes involved. Be certain to choose a lender that doesn’t sneak in fees.
As long as you have means for repayment, a vehicle title loan may be just what you need to get out of a jam.
