What is a car title loan?

A car title loan is a loan that allows you to borrow money against the equity that you have built in your car.  The loan can be made on a qualifying car, truck, van or SUV and even some small commercial vehicles.  These loans are sometimes called "pink slip loans" or "car equity loans" but they are all the same.  To qualify you must have a vehicle that is paid off or close to being paid off. The vehicle has to have enough value and equity to qualify for the loan.  These loans are typically easier to get than a traditional bank loan because the equity in your vehicle is given top priority in qualifying.  State law does require that the lender verify that you have enough income to repay the loan.  Check the income sources below to see some of the types of income that can usually be used.

What are the requirements for a title loan in Albuquerque?

There are 4 basic requirements that are needed for all of our title loans:

  • You must have a vehicle that is paid off or close to it and it must be worth more than the loan amount
  • You must be able to prove at least $1,500 per month income
  • You must not have an open bankruptcy.  If you have had a previous bankruptcy that has been discharged or dismissed you should be ok.  Also, you can not be enrolled in Consumer Credit Counseling
  • You can not have more than 3 repossessions on your credit report

Will I have to leave my vehicle until my loan is paid?

Absolutely not!  That is one of the great things about a title loan.  You will be able to keep your car to drive as normal while you make your loan payments.  The lender will simply need to be added as a leinholder on the title.  This helps make sure that you don't sell the vehicle before paying your loan off.

What kind of documentation is required?

The exact documentation will depend on your individual circumstances but typically you will need the following:

  • Original title to your car
  • Valid driver's license or state issued identification.
  • Your auto so that it can be inspected
  • Proof of income
  • Auto insurance

What sources of income can I use?

Your income can come from nearly anywhere.  Some of the typical sources considered are:

  • Regular employment - paystubs
  • Self employment - tax returns 
  • Social Security Income
  • Pension or retirement income
  • Annuities

How long do I have to repay the loan?

Different states have different requirements for repaying a title loan.  Your loan officer will work with you to come up with the best repayment plan for your situation.  You can also repay your loan early with no penalty.