In an uncertain economy beset by persistent inflation, many people are struggling just to cover the basics. Add to that a financial emergency, and life quickly becomes very stressful. What to do?
Well, if you own a car and have income, you’re likely eligible for a title loan, which can provide fast cash in a pinch. Are there title loans in Kentucky, you ask? Yes, there are. And here’s what you should know.
What are Title Loans?
This is a short-term loan that’s secured by your vehicle’s title, which the title loan company will return once the loan is paid off. Because this is a secured loan, the odds are relatively high that you can get one. However, your vehicle will be seized should you fail to make payments. So first be certain you can do so before taking a loan out.
Also, in addition to cars and trucks, some title lenders will accept RVs and motorcycles. Most companies require you to own your vehicle outright, but there are also those in Kentucky that will lend you cash even if your car’s refinanced.
How Much Can I Borrow?
Your offer will depend on your vehicle, your income, and the state in which the lender’s located. The focus will be on your vehicle’s make, model, mileage, age, and overall condition. The title company will also consider any alterations or modifications in addition to the vehicle’s style and trim level.
The lender will want to see your vehicle. While some will require an in-person inspection, most will permit you to simply submit photos of your car from all angles, plus the odometer and vehicle information number (VIN).
Your income will also influence the amount you can borrow, as well as whether you’ll get at loan at all. If you’re employed, you’ll need to submit income proof such as pay stubs or bank statements. If you don’t have a 9-to-5 but have another steady income source, that likely would work too. Alternative sources could include Worker’s Compensation, an annuity, a retirement account, Social Security, alimony, child support, self-employment, or settlement payments, for example.
Remember, though, that the lender will have your title, so these loans aren’t as much of a risk. Thus, the lender might run your credit, but it won’t focus on it. Bad credit alone will not preclude you from getting a title loan.
Having said that, most loans are between $100 and $10,000, with some loans for even more.
What are Other Requirements?
It depends on the lender, but you’ll generally need to be at least 18, have a driver’s license or other government-issued photo ID (passport, for example). You’ll also need to provide proof of residence, such as a lease agreement or utility bill. Some lenders will also require personal or professional references and proof of vehicle insurance.
How Fast Can I Get Cash?
It’s common to have cash in hand in 24 hours after approval. The application process is straightforward and usually can be completed online, which saves time off the bat. Once you submit all materials, you can be approved the same day, if not within minutes.
Following approval, you’ll have options in terms of fund receipt, including a wire transfer to a local MoneyGram location, and ACH transfer, or direct deposit. Some companies will send an overnight check, if that’s what you prefer, or put the cash on your debit card.
A title loan can be a lifesaver whether you live in Kentucky or any of a number of other states. As long as you can repay it, you should be good to go.
