Most people face financial difficulties in their day to day life. In this case, they often come to such a solution to the problem as a loan. If you are one of those people who wants to take out a title loan, you are probably wondering how much money you can borrow and whether it will be enough to cover your needs.

Title loans, unlike traditional loans, use the value of your car to secure the loan. Thus, you can borrow exactly the amount that is equal to the value of your car. Your ability to pay off your title loan on time is also very important, otherwise you could lose your vehicle.

Car Title Loans

What is the maximum and minimum loan amount?

Each state has its own borrowing limits. Thus, before applying for a loan, find out what is the minimum and maximum amount the state is allowed to borrow. Usually. the minimum amount in most states is $ 2,000 (Idaho, Utah, Arizona) In some states, the minimum amount is slightly higher and is $ 2,510 (California, New Mexico).

As for the maximum amount you can get with a title loan, in almost all states the amount is the same - $ 50,000.

How much can you borrow with a title loan?

In addition to the maximum and minimum amounts, there are still a number of factors that affect the size of your loan. The main factors in order to be approved are the value of your car and the ability to repay the loan. Your car is the security for this loan, and it guarantees the creditors that you will pay off the loan on time, otherwise your car will be taken away. Thus, if you own an expensive vehicle and do not have any problems with your credit history, you can apply for a large loan amount.

How can I find out the approximate cost of my car?

Before you apply for a loan, you need to make sure that the amount you receive will be enough for you. In order to find out the approximate amount of the loan, you need to know the approximate cost of your car.

In order to evaluate your car, you need to consider a large number of factors, such as the model of the car, its age, condition, mileage. Another important factor will be whether the car has been in an accident. There are resources to help people get an estimate of the cost of a car, so use them before you apply.

Can RVs and motorcycles be used to get a title loan?

Of course, there are a large number of people who use motorcycles or RVs and they wonder if they can get a title loan secured by their vehicle. And the answer is yes. However, it is worth considering that the loan amounts for these vehicles differ from the traditional ones and are usually about $ 4,000.