If you need cash fast, a vehicle title loan could be just what you need to bail you out of your situation. After all, all you basically need is a vehicle you own, its title, and loan repayment ability. As a resident of Old Dominion, you may have questions about such loans in your state. To help you, here is title loans in Virginia: everything you need to know.
What are Title Loans?
These are short-term loans that typically require repayment in 30 days or less, although you may be able to get a loan with longer terms.
Such a loan is secured by your vehicle’s title, which you must relinquish to the title lender until the loan is paid off, plus interest.
You will be able to keep your vehicle – car, truck, RV, motorcycle, or boat – during the repayment period, which is a stark departure from how pawn title loans are handled.
How Much Can I Get?
You can borrow up to $20,000 in Virginia, and unlike with bank loans, no credit check is required.
For Virginia title loans, how much you’ll be offered is determined by your income and the equity you have in your vehicle. The latter is determined by the vehicle’s make, model, age, mileage, and overall condition. The lender will also likely factor in any modifications as well as the vehicle’s style and trim level.
What Do I Need to Qualify?
In addition to info about your vehicle, you’ll need to have a government-issued photo identification and proof of Virginia residence (utility bills, lease agreement, etc.).
You’ll also need to prove you have the means for loan repayment. If you have a job, such proof should be in the form of bank statements or pay stubs and the like. If you aren’t employed but you have another source of income – Social Security, property rental, worker’s compensation, a pension, etc. – that would be welcome as well.
How Soon Can I Get Funds?
Once you gather the necessary documents and materials and apply online, you’ll likely hear from the lender that day, sometimes within minutes. Following approval, you will probably have options, in terms of funds receipt. Those may include in-person pickup at a brick-and-mortar or MoneyGram location, and overnight check. You will also likely be offered direct deposit.
Is Good Credit Necessary?
Not at all. Every day, title companies lend cash to those who wouldn’t have the credit for a bank loan. Because your title serves as security, lenders aren’t too worried about risk.
What Happens if I Run into Payment Trouble?
If you don’t make payments as agreed to, the lender may legally seize your vehicle and sell it to cover losses.
However, it may not be the end of the world if you find yourself having trouble making payments. In Virginia, some title lenders can refinance your loan or extend terms. You may be able to get a flexible repayment plan that’s more to your liking.
Thus, if you discover that, for some reason, you’re having difficulties making payments be certain to speak with your lender right away to see whether there are remedies. To cover yourself, you would do well to seek a loan company that would accommodate refinancing or allows you to buy back your vehicle if it is seized – before you take out a loan.
So that’s everything you need to know about title loans in Virginia. Such loans are a good way to quickly gain funds in a pinch. Just be certain you can repay the loan before taking one out, and that the company you choose can help you if you find that you cannot.
She graduated with a Bachelor of Arts (B.A.) and A.B.J. in Journalism from the University of Georgia. She has 13 years of experience in content writing. She writes about money, finance & science-related articles. Her articles have been featured in popular magazines like CNN, Vogue & ELLE.