Is a Title Loan Allowed in Virginia?
The answer to that question is yes! If you have a title to a qualifying vehicle in your name, you may be able to get emergency cash. While some states have restrictions in place for car title loans, the state of Virginia has no laws against them.
Are you interested in getting a title loan? Title loans can be a great financing option for Virginia’s qualified residents and vehicle owners. Read below for details on how title loans in Virginia work and how you can apply for one today!
How Does a Car Title Loan in Virginia Work?
An auto title loan in Virginia works by allowing you to use your vehicle title as collateral for funding. Collateral helps you secure the loan even if you have an undesirable credit score or financial background; what’s important is that you meet the following criteria for a title loan:
- You Must Be 18 Years of Age or Older to Apply
- Have a Title to a Qualifying Car in Your Name
- Possess the Ability to Pay Off Car Title Loans in Virginia
- Have Enough Available Equity in Your Vehicle
With a Virginia title loan, your car must have a certain amount of equity to qualify. You can use the equity during the approval process to secure money! Essentially, you are only able to access what is already there.
If you default on your loan, your car may be repossessed. The lender may or may not choose to sell it to recoup the loss. During the repayment period of a car title loan, a lender will place a lien on your title. If you don’t repay the loan, there are consequences- that is true of every secured loan, including auto loans and mortgages. The title loan lender will remove the lien from your car’s title once you repay the loan in full.
Equity is also the deciding component for your potential cash total. The more value your car has, the more cash you could potentially receive through an auto title loan. But what if you don’t know your vehicle’s current equity amount? That’s fine! Different tools, like Kelley Blue Book, can help you find a rough estimate of your car’s equity. As soon as you get an estimate, you could determine if your vehicle has enough equity to warrant the money you need.
Are Documents Required to Obtain an Auto Title Loan in Virginia?
In addition to using your car title as collateral, you will need to submit a few documents to your title loan lender. These documents can help them verify your information and vehicle ownership. While you may worry about finding the right paperwork, you may already have them handy! If you inquired about a car title loan with an online lender, you could send your documentation from the comfort of your home! There is no need to drive to a physical location to satisfy this qualification.
Make sure you contact your local Department of Motor Vehicles to see if Virginia needs additional information to qualify for a loan. However, you can anticipate sending the following documents:
- Pay Stubs, Bank Statements, Retirement Income, Social Security/Supplemental Security Income, or Another Document to Prove Your Income
- The Title to Your Vehicle
- Recent Credit Card Statements, Utility Bills, Rental/Lease Agreements, Recent Mail, or Another Document to Prove Your Virginia Address
- A Government or State-Issued Identification Cards, Such as Your Passport, Driver’s License, or Other Certified State Identification Cards.
- Some Personal or Professional References
Once you submit all the documents, you could move on to the final step of getting a Virginia title loan.
Where Can I Apply for a Title Loan in Virginia Today?
No matter which title loan provider you choose, you may find how easy it is to apply for a loan. When you inquire about a ChoiceCash title loan in Virginia, you could earn money by completing these three steps:
- Begin the Car Title Loan Inquiry Online or Over the Phone
- Send Your Documents
- Find Out if You are Approved and Collect Your Cash
Again, whichever way you decide to get a title loan, it’s important to educate yourself about them before getting one. Once you feel comfortable, you may be ready to get the cash you need for an unexpected bill or expense!