Are you a motorcycle owner who needs to get quick cash for an emergency or who got bogged down on the mortgage before your next paycheck? If so, motorcycle title loans may be just what you need.
This type of loan is extremely attractive as there aren’t many obstacles to getting the money you need, including a strong credit history or full-time employment to qualify. Moreover, you can go on using your motorcycle as you make the required monthly payments.
A motorcycle title loan is not the same as getting credit card loans or cash advances. Before getting started with a motorcycle title loan online, learn more about the process of obtaining this type of secured loan, its benefits, downsides, and risks.
What is a Motorcycle Title Loan?
A motorcycle title loan, also known as a motorcycle title pawn, uses your motorcycle as collateral to guarantee a secured loan. Depending on the quality and value of your vehicle, as well as your state’s regulations, you can qualify for a loan of up to $10,000.
All credit types are eligible for motorcycle loans. What is more, you may not be required to have full-time employment to get it.
How Do Motorcycle Title Loans Work?
As we’ve already mentioned, the loan uses your motorcycle as collateral, meaning the lender has every right to repossess the bike from you if you don’t repay the loan.
So it’s crucial to act carefully and cautiously when deciding on how much money you borrow with this type of loan. Make sure you’ll always get the money you need, no matter which type of title loan you take out your motorcycle on. Basically, there are two types:
- Single payment loans. With single-payment loans, you have only a month to repay your loan amount fully. You can renew your loan if you are not able to pay in time, but this will cost you as your interest rates increase.
- Installment loans. This type of loan allows you to repay your loan amount during a period of typically three to twelve months.
How Do I Apply for a Motorcycle Title Loan Online?
To get the best out of motorcycle title loans online, follow the guideline below.
Estimate Your Bike
First, it’s vital to get an estimate of how much your motorcycle is worth. Take its model, make, age, and mileage into account. Thus, you’ll have some idea of what your minimum loan amount may be before you decide to use it as collateral.
You don’t need to worry about taking your motorcycle for inspection. In most cases, you just share the latest pictures from all angles, such as front, side, and rear. Loan agents will inspect the motorcycle online to decide the loan amount.
Compare the Lenders
The next step in the motorcycle title loan process is comparing lenders to get a full understanding of the loans available to you and choose the one that best suits your needs.
Mind that not all lenders accept motorcycle titles as collateral. So it would be best if you double-checked everything.
While comparing APRs, take the time during which you’ll have to pay your loan back into consideration. The longer the term for repayment, the more time there is for interest to collect and develop into a larger loan in the long run.
Complete the Online Form
You must fill out the application form online and submit the requested documents to get instant cash. Documents include:
- Valid government-issued ID
- Proof of insurance
- Proof of residence
- Proof of income
- Motorcycle title & registration
As soon as everything works out, you’ll receive the required cash in your bank account.
How Do I Qualify for a Title Loan
Title loans are relatively simple to qualify for compared to traditional personal loans. They don’t require too much information from the applicant. One just needs to meet a few requirements:
- Have a lien-free motorcycle title. The lien-free title means you can’t use your vehicle as collateral with other loans.
- Have proof of residence. Some lenders will require evidence that you live in the state where you’re applying for a loan, whether it’s a copy of a utility bill, mortgage, or lease agreement.
- Provide evidence of regular income. Even though you don’t need to be employed to get a title loan, you do need to prove that you have a source of income.
- Be over 18 years old. Most states require that a borrower must be older than 18 to be eligible for a loan.
Benefits of Motorcycle Title Loans
One of the biggest benefits of motorcycle title loans is that they are extremely quick and easy to get fast cash for your financial needs. A motorcycle title loan may provide you with temporary assistance in case of an emergency or lack of funds to support yourself.
You don’t need to visit any stores to get your loan. With a simple online application and easy verification process, you can get your motorcycle title loan in as little as 30 minutes.
Moreover, it’s completely hassle-free. You may not need a job to qualify – only a form of income is required. Also, having poor credit isn’t usually a hindrance with this type of loan.
If you are about to get a motorcycle title loan, be aware of these potential risks:
- Motorcycle title loans are pricey. Take into consideration that they usually have APRs of about 300%.
- In case you can’t cope with repaying the money on time, it may lead to a cycle of debt.
- You also have a risk of losing your vehicle. If you don’t pay off your loan on time, your lender has the right to repossess your motorcycle.
- Title loans are not available in all states. Read up on your state’s laws before applying.
Is It Worth Taking out a Motorcycle Title Loan?
Taking out a motorcycle title loan can help you get instant cash with little effort, especially if you have a financial emergency. You should only consider it if you are sure you’ll be able to repay the amount borrowed in the time agreed. Thus you’ll manage the remaining credit and avoid excessive interest charges and monthly lending costs.
The Bottom Line
A motorcycle title loan makes sense if you need fast cash to tide you over, in an emergency, with the process taking only 30 minutes on average.
Motorcycle title loans are a great way to get fast cash hassle-free and with cheaper and safer financing than, for example, short-term loan options.
Follow our guidelines and take advantage of getting motorcycle title loans online. Don’t neglect considering all possible risks. Research your options and make sure you can afford to make the repayments.