A title loan allows you to borrow money using your vehicle as collateral. Generally, you can borrow up to 60 or 70 percent of the value of your car. However, there are some criteria that need to be met for your vehicle to qualify for a title loan. What are these criteria?

You Must Have Sufficient Equity In Your Car

In some states, should you fail to repay your loan, the loan company that gave you the loan will want to liquidate your car to get its money back. However, with Phoenix title loans, they will not be able to do so if someone else already has a lien on your car. In other words, the title lender would have to pay the original lender instead of taking the money directly if you still owe money on your car.

The Title Must Belong To You

If there is someone else on the title, you may not be able to take the loan without approval from anybody else on the title. This is because you cannot use items as collateral unless everyone who owns the property agrees to do so. Therefore, make sure that you have the approval of everyone on the title or have the title transferred to you before applying for a loan.

It May Not Be Possible To Get Multiple Title Loans At The Same Time

If you already have taken out a vehicle title loan on your car, it may not be possible to get a second one even if you would otherwise qualify for the loan. Additionally, you may not be able to get a second title loan regardless of whether you are using a different car as collateral. Therefore, make sure to ask your lender as well as check with your state to determine what laws apply if you are seeking a second title loan.

A vehicle title loan can be a great way to get money when you need it quickly. However, you have to make sure that you qualify for the loan. Make sure that you have sufficient equity, own the car outright and do not have any outstanding title loans at the time of your application. Otherwise, you may not qualify for the loan.