You can’t get a bank loan, which would take too long anyway. A payday loan is out since those must be repaid when you get your next check. But there is an alternative loan option in Virginia, namely vehicle title loans. With those, all you essentially need is a car you own and loan repayment ability.
Read on to learn more.
Vehicle Title Loans
These short-term loans must be repaid within a month or so, although longer terms may be possible. You will need to have a vehicle registered in your name with a clear title. The title will serve as collateral, which means the vehicle is at risk of seizure if you don’t make timely loan payments. Be certain you can handle such a loan before taking one out.
The good news is you can continue to use your vehicle as you normally would during the repayment period. That’s in contrast to title pawn loans. All you must do is turn over your vehicle’s title, which will have a lien placed on it until the loan is repaid.
By the way, in addition to a car or truck, “vehicle” can also mean boat, RV, or motorcycle.
Am I Eligible?
In Virginia, you’ll need to be at least 18, have a government-issued photo ID and proof of a Virginia address (utility bill, lease agreement, etc.).
You must also prove you can handle the loan payments. That means offering up pay stubs or bank statements If you have a regular job. Income from a pension plan, Social Security, Worker’s Compensation, a legal settlement, self-employment, rental income or the like would also work.
What Amount Can I Borrow?
Your income along with your vehicle’s value — based on its make, model, age, mileage, and general condition — informs your loan amount. To help assess that value, you’ll be asked to submit recent, quality photos of the vehicle from all angles, plus clear shots of the odometer and vehicle identification number. Make sure the photos are taken in natural light.
However, how much you can borrow will NOT depend on your credit, although some lenders will look at it. In most cases, bad credit and even a bankruptcy filing are acceptable. Because these loans are secured, title loan companies aren’t that concerned about risk.
For Virginia title loans, you can expect to get around 25% to 50% of your vehicle’s value. Note that whatever you’re offered will likely be more than you can get from a bank — if you even qualify for a bank loan. That’s because most bank loans are unsecured. In terms of repayment, you may be able to get a decreased monthly payment and rate if you consistently make online payments.
How Soon Can I Get a Loan?
This is a fast process. For one thing, you can apply completely online, which negates the need to travel to a lender. Once you’ve submitted the application and all required materials, you’ll likely hear back from the lender the same day, if not within minutes.
After you’re approved, you can have cash in hand by the next business day. You’ll have options in terms of how you get your cash, including via MoneyGram, overnight check, in-person pickup, or direct deposit. Be sure your bank account is set up to receive ACH transfers If you prefer the latter.
So, yes, alternative loan options in Virginia do include vehicle title loans, which may be just what you need to get you out of an emergency.