Title loans are not confined to cars, as people with other types of assets can also apply for cash. If you own a motorcycle, you can check out motorcycle title loans. In this case, you use your motorcycle title as collateral against the loan. To approve your application, the lender calculates the value of the motorcycle to know if you qualify for the amount you seek. These loans work like auto title loans, so you must repay the amount borrowed, or you risk losing the asset as the lender can repossess the motorcycle if you default.
People opt for bike title loans because if you own a high-quality bike, you can qualify for a higher amount. This is unlike unsecured payday loans, which are determined by the source of your income. Also, borrowers with bad credit can get motorcycle title loans because the lender does not need to verify your credit history. Direct lenders use your source of income and the bike title to approve your request. This makes it easy to get approved for this type of credit, which means it can be a savior when you’re facing a financial emergency.
A motorcycle loan is a secured type of loan where you use your motorcycle title as collateral. Like a car title loan, the lender holds your bike title until you pay off the debt. Because the amount is calculated based on the asset value plus your income, you can qualify for a higher amount when you get a title loan on a motorcycle. You can get up to $10,000 depending on the value of your motorcycles and laws in your state on the maximum short-term loan you can get from a direct lender. Lenders also call these motorcycle title pawns.
Like all other types of title loans, you can borrow two types of motorcycle loans: installment and single-payment loans. Motorcycle installment loans allow borrowers to repay slowly over several months, typically 3 to 12. However, a single-payment motorcycle title pawn gives you a maximum of one month to pay off the loan, usually in one lump sum. You can borrow the loan even if you don’t have a job, as long as you get a form of income, like child support payments or unemployment benefits. Also, bad credit does not impede getting approved, as direct lenders don’t lock out borrowers based on their credit.
To borrow from motorcycle title companies, you must provide your motorcycle title to secure the loan. The lender uses the title as collateral to put a lien on the title until you clear the loan. This means you cannot sell or use the motorcycle to apply for more debt from other lenders.
If you’re wondering what happens to the motorcycle, it does not mean you must hand it over to the lender. You only need to offer the bike title, and you can continue using your motorcycle while making payments. However, if you stop making payments, the lender can repossess the motorcycle to settle the rest of the debt. So, nothing happens to the motorcycle as long as you maintain on-time payments. Each loan includes terms and conditions, and when you agree to receive the money, you’re legally bound by those terms, which include allowing the lender to repossess the asset you used as collateral if you default.
The amount you can get for a motorcycle title loan depends on several factors, including:
One downside of motorcycle loans is that the interest APR can reach up to 300%. Before you borrow, use an online calculator to know how much the loan will cost you.
Like any other short-term loan, getting scooter title loans is easy as you don’t need a lot of documentation to qualify. Some of the things required include:
With this information, complete the next step:
Get started with filling out the loan request form on the lender’s website. Provide the information highlighted above and any other details the lender might require to process your loan request.
Lenders like LoanSolution offer feedback in less than 30 minutes, which helps you to know if you were approved. If your request was accepted, the lender would begin the process to transfer the cash.
You need to sign documents agreeing with the loan terms.
With the above steps complete, you will finally get the money in your bank account.
There are many places online you can find motorcycle title loans. Sites like LoanSolution offer one of the best places to borrow as you’re guaranteed instant approval, fast funding, and the website allows a smooth loan application process. Also, your data is secure.
Applying does NOT affect your credit score!
No credit check to apply.