Title Loans: Using Your Camper As Collateral

If you're looking to free up some cash, you can use your camper or RV as collateral for a loan. This is similar to a car title pawn, and many people don't realise it's an option. The loan amount depends on the value of your vehicle, and you can usually keep using your camper while you make payments. You'll need to provide ID, proof of income, and insurance, and the camper must be in your name. This option is great if you need quick cash and don't have a good credit score.

How much can I borrow?

The amount you can borrow with a camper title loan depends on several factors, such as the value of your camper, its make and model, and its condition. Some lenders offer loans of up to $4,000, while others offer up to $50,000.

The loan amount for an RV title loan is typically based on the value of the RV. Lenders will consider the make and model of your camper, and may request photographs to help determine its value. They will also inspect the vehicle in person to confirm its condition before finalising the loan amount.

Your credit score is usually not a factor in determining the loan amount for an RV title loan, and some lenders do not perform credit checks at all. However, your credit score may be considered when determining the interest rate and terms of the loan.

It's important to note that RV title loans are typically short-term loans, and the lender will hold the title of your camper until the loan is repaid. During this time, you can continue to use and enjoy your camper.

What are the requirements for a title loan on a camper?

When applying for a title loan on a camper, you will need to meet certain requirements. These may vary depending on the lender, but here is a general overview of what to expect:

Ownership and Registration

Firstly, you must be the owner of the camper with no other company, person, or lender claiming ownership. This is essential, as the lender will need to know that the vehicle is yours and that you have the right to use it as collateral. You will also need to provide the title and registration documents for the camper, often referred to as a "pink slip".

Vehicle Type and Value

The type of camper you own will also be a factor. Typically, stand-alone trailers that are towed by a vehicle do not qualify for a standard motorhome title loan, but they may be used as equity for a loan. The camper usually needs to be a motorised recreational vehicle (RV) rather than a static trailer. The value of your camper will also be assessed, and it will need to be worth more than a certain amount, often $4,000, to qualify for a title loan.

Personal Identification and Residency

As with most loans, you will need to provide personal identification to prove your identity. Additionally, some lenders require you to be a resident of the US and to provide proof of residence, such as a utility bill or junk mail addressed to you at your place of residence.

Income and Credit Score

Lenders will often ask for proof of income, such as pay stubs, bank statements, or social security proof. This is to ensure that you have the ability to repay the loan. While some lenders do not require a credit score check, others may perform a check but only to look for past bankruptcies.

Additional Requirements

In some cases, you may be required to own a home and not live in the camper you are using as collateral. This is to ensure that the lender can easily inspect the vehicle and determine the loan amount. It is also beneficial to provide photographs of your camper and details of its make and model to give the lender a better idea of how much they can loan you.

It is important to note that requirements may vary between lenders, so be sure to check with your chosen lender to understand their specific requirements for a title loan on a camper.

What are the benefits of a title loan?

Yes, it is possible to get a title loan on your camper. A title loan on an RV or camper works just like a car title loan, with the vehicle being used as collateral. Here are some benefits of a title loan:

Quick Access to Cash

No Complicated Approval Process

Unlike other types of financing, title loans have a straightforward and less complicated approval process. Since you are offering a form of collateral, title loans are relatively easy to qualify for, even with bad credit or no credit history. Many lenders will provide title loans without checking your credit score or report. As long as you can show proof of income and that your vehicle is worth more than the loan amount, the lender will likely approve your application.

Keep Your Vehicle

When you take out a title loan, you get to keep and continue using your vehicle while making payments. The lender will place a lien on the title and may ask for a pair of keys, but you can still drive and enjoy your RV or camper as you normally would. This is a significant advantage, as other loan options may require you to give up possession of your valuable assets until you repay the loan.

Flexible Repayment Terms

No Guarantor Needed

While title loans offer these benefits, it is important to remember that there are also risks involved. Title loans often have high-interest rates, and if you are unable to make payments, you may face late fees and ultimately risk losing your vehicle to repossession. It is crucial to understand the terms and conditions of the loan and ensure you can make the payments on time.

What do I need to apply for a title loan?

To apply for a title loan, you will need to meet the following requirements and provide certain documents.

Firstly, you must be 18 years of age or older and have a government-issued ID to prove your identity and age. You will also need a source of regular income, which can include a pension, disability benefits, a salary, or unemployment benefits. The specific requirements may vary depending on the lender, but generally, you will need to own the vehicle outright and have a lien-free title in your name. This means that there should be no existing loans or liens against the vehicle.

In addition to the above, you may also need to provide the following documents:

• Vehicle registration
• Proof of residence, such as a utility bill or other mail with your name and address
• Proof of vehicle insurance
• Pay stubs or other proof of income
• Names, phone numbers, and addresses of at least two valid references
• Working copies of the vehicle's keys
• A GPS tracking device (required by some lenders for potential repossession)

It is important to note that title loans are typically short-term loans with high-interest rates and are often geared towards borrowers with poor credit ratings or those who do not qualify for other financing options. Make sure to carefully review the terms and conditions, including interest rates and fees, before agreeing to a title loan.

What is the approval process for a title loan?

The approval process for a title loan is fairly straightforward. Here are the steps you can expect to go through when applying for a title loan using your camper or RV as collateral:

Application and Submission of Documents:

The first step is to complete an application form and submit the required documents. The specific documents will vary depending on the lender, but typically include personal identification, proof of income (such as pay stubs, bank statements, or tax returns), and the camper/RV title and registration. Some lenders may also require proof of residence, such as a utility bill or lease agreement.

Loan Underwriting:

Once you have submitted your application and documents, the lender will evaluate your loan using various criteria, including credit scores, repayment history, cash flow, and the value of the collateral (your camper/RV). This step may take some time, depending on the complexity of your application.

Decision and Terms:

After the underwriting process, the lender will make a decision on your loan request and communicate their decision to you as soon as possible. If your loan is approved, the lender will also provide the terms and conditions of the loan, including the loan amount, interest rate, and repayment schedule.

Inspection and Finalization:

Before final approval, the lender will typically inspect your camper/RV to determine its condition and value. Once the inspection is complete and the terms are agreed upon, you will receive final approval, and the funds will be disbursed to you.

Repayment and Lien Removal:

During the repayment period, you will make regular payments on the loan. Once you have made all the payments, the lien on your camper/RV title will be removed, and the title will be returned to you, free and clear.

It's important to note that the specific process and requirements may vary between lenders, so be sure to carefully review the terms and conditions of your loan before agreeing to anything.

Frequently asked questions