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Guide to Title Loans In Indiana: Process and Requirements
No matter how much we prepare, there are times wherein we find ourselves in challenging situations.
A pile of overdue bills, expensive hospital bills, expenses for funeral service, or unforeseen home repairs that you need to address urgently would require HARD CASH.
If you need money right now, a car title might save the day.
In this article, we’ll walk you through the PROCESS, REQUIREMENTS, and TIPS on how you can get approval within one day!
How Do Title Loans in Indiana Work?
Car title loans allow you to apply for a cash loan by temporarily surrendering your vehicle title.
FUN FACT: Here are the other names of car title loans
- Pink slip loans
- Auto title loans
- Vehicle title loans
Indiana residents (of legal age) can apply for a car title loan.
A lot of borrowers prefer title loans because they are convenient.
Your car title serves as collateral - meaning the car vehicle title serves as a guarantee while you repay the loaned amount.
The borrower exchanges their car title as collateral, BUT the car still stays with you.
YES - throughout the duration of the title loan, the owner can still keep driving the car.
Note: Verify this information with your chosen lender first.
Process and Requirements for Title Loans in Indiana
1st Step: Apply Online With a Trusted and Reputable Lending Institution
In Indiana, there are several lending institutions offering car title loans.
However, since short-term loans started becoming popular, many unregulated and illegal lending groups have also been established.
THUS, be sure to check if the lending institution is allowed to operate legally in Indiana.
Aside from permits and business registrations, check the reviews online.
You’ll be able to see their credibility and gauge the quality of their customer service.
MONEY SAVING TIP: Car Title Loans Have Competitive Rates.
When doing your research, DO NOT only look for verified lenders but also note their interest and general loan terms.
Needless to say, go with the one with NOT ONLY the lowest rates but also flexible terms.
Once you have chosen your lending institution, please fill up the required information on their website and proceed to the next step.
2nd Step: Submit Documents for Screening
Once loan agents in Indiana receive your application, expect them to reach out to you.
In this step, they will assist and advise you on how to proceed with your loan application.
These are the GENERAL REQUIREMENTS necessary for a vehicle title loan.
However, some lenders might require additional documents, so confirm the final list of documents with them.
- Free and clean vehicle title
- Government-issued photo ID (such as SSS or driver's license)
- Proof of residence (such as utility bills or contract of lease showing your address in Indiana)
- Proof of income (such as payslips or bank account statements)
- Pictures of your vehicle
- Vehicle identification number and odometer (mileage)
Once you have all the documents ready, submit these online, so the agent can start processing your application.
3rd Step: Review Terms
DO NOT SKIP THIS STEP!
It’s tempting to just sign the contract to get your money asap, but be sure to spare a few minutes to read the FINE PRINT.
DOUBLE-CHECK if the terms are the same as what was discussed.
Be sure you know the repayment conditions, interest rate, and the total amount of money you should pay back to the lending institution.
READ. REVIEW. ASK, if necessary.
4th Step: Choose Method on How to Get Your Cash
After submitting your documents, all there’s left to do is to wait.
The agent will call or message you regarding the loan. If your application is approved, you’ll be given a list of choices on how you can claim your money.
In Indiana, these are the common options available for auto title loans:
- Direct deposits
- Wire transfers
- Mobile banking
- Money Transfer (Western Union, Transfast)
Advantages of Car Title Loans
Secure and Discreet Loan Process
No need to disclose information on where you plan to use the money!
In contrast to bank loans or applying in credit unions, you don't need to justify or expound on your loan application.
The nice thing about title loans is the convenience of the whole process - FROM START TO FINISH! You can receive your money WITHOUT the need to leave your house.
Every step can be done online, which means you won’t even have to step out your front door. Convenient, right?
Get Your Money After a Day
YES - You read that right!
Once you have submitted all required documents for the title loan, expect an update from your lender within ONE BUSINESS DAY.
What's better - once your auto title loan application is approved, there are many convenient methods available in Indiana on how you can claim your money.
Disadvantages of Car Title Loans
You Risk Losing Your Vehicle
Car title loans are a go-to option IF you have the capacity to pay back the loaned amount on time.
The lender temporarily owns the auto title; thus, the title loan lender can claim your car once you don’t deliver your end of the deal.
High Interest Rate
Among short-term loans, car title loans have high interest rates and obscure terms that can easily lead to penalties.
Frequently Asked Questions
How Much Money Can I Get From the Loan?
The loan amount and terms depend on the equity value of the car you submit as collateral.
Generally, the better the car, the better the deal you can get.
What factors affect a car’s equity value? Indiana lenders look at 4 MAIN COMPONENTS that would affect the vehicle value:
- Make and Model of the vehicle
- Mileage or total distance traveled
- Year released
- Zipcode of the vehicle
We recommend doing your own computation, which serves as a reference once the lender gives their offer.
For those with pending installment payments, you need to account for any unpaid balance or fees to get the vehicle's equity value.
These can be accepted, but expect the total loan amount to be affected, resulting in more fixed terms and higher interest rates.
What Is the Difference Between Payday Loans From Title Loans?
Payday and title loans are two of the top go-to sources for those needing emergency money.
The only SIMILARITY they both share is that they are short-term loans. However, they have their fair share of differences.
In terms of the loan amount, Payday loans can only offer smaller loans.
- Most lenders in Indiana normally have a maximum loan amount of $500.
- Basically, it works the same way as cash advances.
- Repayment is less flexible. Normally, you will need to write a postdated check that would coincide with your next salary day.
A vehicle title loan, as mentioned, uses your car title as collateral.
This means the loan amount would highly depend on the equity value of your car. In this type of loan, loan amounts usually range from around $100 to $50,000!
Although interest rates can be higher than payday loans, lenders can offer more flexible terms, rendering it a SAFER choice.
A vehicle title loan will work better than a payday loan if you need a relatively huge amount with flexible repayment terms.
Do I Need to Surrender My Car?
No! We like title loans because you get to keep driving your car while repaying the loan.
Only the title is “held” by the lender throughout the duration of the title loan.
However, be sure to clarify this with your lender, as some might have different terms.
I Have Zero or Bad Credit. Can I Still Apply?
Yes, title loans can accept applications from borrowers with no previous history or even bad credit.
It’s not a requirement to have a good credit score to get title loans approved. The MAIN BASIS for the title loan would be the documents submitted PLUS your ability to pay them back.
The information must be SUFFICIENT to support your application.
Lenders might opt to conduct credit checks to verify the documents or if they feel the need to establish your ability to repay the money owed.
Thus, to increase chances of approval, be sure to have supporting documents that can serve as PROOF of how you plan to pay them back!
Are Credit Checks Conducted?
If you are concerned about whether your credit score or credit history is considered or checked during the application process, here’s the answer.
USUALLY, a credit check is not necessary for title loans. HOWEVER, on a CASE TO CASE BASIS, they may still be conducted. But why?
We’ve mentioned that the MAIN BASIS of the loan’s approval is the car title and the supporting documents.
Generally, a legal resident of Indiana with bad credit or a low credit score MAY STILL be granted a loan.
What can prompt title loan lenders to do credit checks is when they spot a necessity to establish your credibility or capacity to repay the loan.
For those who are worried because of their bad credit, if you want to INCREASE your chances of getting your loan approved - here are a couple of tips:
Triple-Check Your Documents
Others can obtain a loan if their papers are complete and comprehensive.
We know, it sounds pretty simple. However, it’s a crucial factor that many people overlook.
For example, make sure your car title matches the details in your ID.
The proof of income or address in Indiana should support the details in the documents and the form you submit.
Provide Proof of a Stable Source of Income or Funds
Car title loan lenders need to establish your ability to repay before they can grant a loan.
If you are unemployed, show PROOF that you do freelance work or DOCUMENTS indicating that you receive security or pension benefits.
You may attach these documents to support your profile.
That's all you need to know to get a title loan in Indiana. It’s quick and easy!
Title loans in Indiana are highly accessible and safe. Just remember to read all the loan terms and conditions provided in the agreement before finalizing anything.
We hope this will help you secure the money you need!