Quick Loans Explains: What Is a Title Loan and How Does It Work?

At Quick Loans, we lend our customers money for significant purchases, such as a car, a home, or college tuition. If you need money for an essential item, it’s important to know how loans work. Today, the Quick Loans blog focuses on one loan in particular: title loans (aka car loans). We explain what they are and how they work in further detail.

What Is a Title Loan?

Car title loans offer you quick cash in exchange for your vehicle as collateral. Title loans are a type of secured loan, which is one backed by property the lender can take if you don’t pay.

How Do Car Title Loans Work?

The title loan process is fairly simple for potential buyers. When you arrive in person or contact the lender online, you show the lender a few documents, including an application, the title of the vehicle, and a photo ID. Next, the lender examines the car’s value often offers a loan based on a percentage of your car’s value.

An average car title loan can range from $250 to $10,000. While a borrower can leave with the money in less than an hour, the lender holds onto their title as collateral until the loan is repaid.

How Do Installment Title Loans Work at Quick Loans?

Once you understand how title loans work, you can begin to apply for one online or in person. At Quick Loans, we make it easy for you to get a car title loan, and we can usually get you approved in 30 minutes or less. For more details, visit the FAQ page on our website. Your car must be licensed in the State of Missouri and your name must appear on the title as an owner of the car.   

Apply for a Title Loan Today

Quick Loans offers installment loans, installment title loans, and pre-owned auto financing. Our representatives will work with you to make sure you receive the money you need, and our approval process helps you get the money in your hands quickly. If you have any questions, call (417) 725-5010, visit our Nixa office, or contact us online today.