According to reports, 41% of Americans can handle a $1,000 emergency.
But what about a $5,000 emergency? Most of us don’t have this kind of money available to use at the drop of a hat.
Further research shows that more than half of Americans experience a financial emergency once a year. If you’re in the midst of one and own a motorcycle, it might be wise to learn all about motorcycle title loans.
Motorcycle title loans are an easy way to access credit, without the need to have a spotless credit score. Let’s break down what they are, how they work, and discuss the potential advantages.
What Are Title Loans?
First, what are title loans?
Title loans utilize a vehicle title as the collateral, which decreases risk for lenders. Because of this, your credit rating isn’t a deciding factor in whether you will receive the loan.
As the lender has your vehicle title as security, they are assured that if you default on the loan, they can still recover their money.
Thanks to this, the approval process for title loans is usually far quicker than for other types of credit. To give you an idea of how fast you can gain approval, here at Georgia Title Loans, our streamlined approval process can take just 30 minutes or less!
Now that you know what title loans are, let’s drill down and take a look at motorcycle title loans specifically.
How Do Motorcycle Title Loans Work?
Motorcycle title loans work in much the same way as other vehicle title loans.
To begin, you need to complete the application process with a suitable lender. You will generally need some or all of the following:
- Be 18 years of age
- Possess a valid state drivers license
- Have a clear motorcycle title in your name
- Sometimes, proof of income
Take note that proof of income does not mean the same thing as proof of employment. While you will most likely need to prove that you have some form of income, this doesn’t have to be from a job. It can be from social security benefits, a pension fund, etc.
Another important point to be aware of is that you will generally have to hold a lien-free title. There are some states where lenders are allowed to accept titles that still have a lien on them. However, here in Georgia, the law requires that lenders only accept titles that are lien-free.
This is typically a good thing, as title loan options that allow for pre-existing liens generally don’t offer the best terms. Interest rates are higher in most cases, and the application process isn’t as quick.
Once you have applied for a title loan on a motorcycle, the lender will hold your title, which gives them security in the event that you do not pay back the loan. Once you have repaid the loan, the lender will return your title and you can drive home happy.
How Much Can You Get for a Title Loan on a Motorcycle?
Unlike other loans where the amount you can receive depends on things like your credit utilization ratio and credit score—the amount of money you can borrow with a title loan on a motorcycle depends on the value of the bike.
Lenders will typically borrow you a percentage of the market value of your motorcycle. This percentage varies between lenders and states.
What you can receive in total will depend on the value of your bike, and what amounts the lender you choose gives out. Here at Georgie Title Loans, we extend loans of between $200 and $50,000.
If you are wondering how to value a motorcycle so you can get a title loan, keep in mind that the lender you apply with will do it for you. All you need to supply is the make and model number and bring the motorcycle to the title loan location for an appraisal.
Who Can Take Out a Title Loan on a Motorcycle?
Are you wondering whether you’re eligible to take out a motorcycle title loan? Here are some of the requirements and factors.
For one, you need to be 18 years of age or older to apply for a title loan. Second, (as mentioned above) in most cases you will need to hold a lien-free title.
You will also need to live in a state that allows title loans.
Benefits of Motorcycle Title Loans
Motorcycle title loans, and title loans in general, hold a number of advantages. First, they are very easy to apply for. You don’t need a high credit score. In fact, you can secure a title loan with no credit score whatsoever.
Besides this, title loans are also very fast to apply for. A title loan is one of the quickest, and easiest avenues to get cash quickly.
We Extend Motorcycle Title Loans in Atlanta and Various Other Cities
Motorcycle title loans can be a great way to get quick cash when you need it. You can leverage your motorcycle as collateral and secure a decent loan with a competitive interest rate.
Are you considering taking out a title loan on your motorcycle? If so, we’re the people to call. We have convenient locations in Lawrenceville and Norcross but serve all of metro Atlanta. We specialize in car and motorcycle title loans, and feature a lightning fast application process.
To get your loan, visit one of our locations or fill out our online form to give us your info ahead of time and speed up the process even further.