5 Tips to Receive a High Title Loan Amount

A title loan is ideal for someone who has poor credit or is looking to get money in as little as a day. However, such a loan does you no good if you don’t get as much as you need from the lender. What are some things that you can do to make sure that you get the highest loan amount possible?

Provide Accurate Information About the Vehicle

To get the most from a title lender, make sure that the lender has accurate information about your vehicle. You may want to get a CarFax report or provide maintenance details to prove that the car has been taken care of and is worth top dollar.

Let the Lender Inspect the Vehicle Personally

Some lenders allow you to submit photos of the car before a loan decision is made. However, it may be in your best interest to allow a lender to inspect the car personally as it may allow for a more accurate valuation.

Find a Way to Increase Equity in the Vehicle

The loan amount that you receive is based partially on the equity that you have in the vehicle. If you don’t have at least 75 percent of the car’s loan paid off, you may not qualify for a title loan. You may be able to increase equity by converting your car loan into a personal loan or by asking another a friend or family member to pay down your car loan for you.

Add Additional Collateral to Secure the Loan

A title loan is already a secured loan as the lender can repossess the car if you fail to repay it. However, it may be possible to get even more for your vehicle by adding additional collateral or adding a cosigner to the loan. Extra collateral may be an interest in your home or anything else of value that can be quickly liquidated by the lender.

Get Quotes From Various Title Loan Providers

It may be in your best interest to shop around and get multiple quotes from title loan providers. It is possible that two lenders could look at your car and come up with completely different valuations. In the event that you have a history with a title lender, you should use that lender for your next loan. This is because your track record may convince the lender that you are worth the risk that comes with a larger loan.

Title loans are generally a last resort for those who can’t get a personal loan or credit card. However, if you need money today, it is important that you know how to maximize your car’s value to lenders in an effort to get as much as you can from them.

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