To apply for financial help from a title loan, the vehicle’s title must be in your name, and it must be lien-free. If a lien or name on your car’s title is stopping you from applying for a title loan, it doesn’t have to be an obstacle! Adding names and removing liens on car titles can be easier than you think.
After your name has been added or your lien is removed, you can take advantage of the flexibility of a ChoiceCash Title Loan online!
What is a Title Lien?
To understand how a title lien works, it is important to understand how a title loan works. Title loans are a unique type of collateral-based loan that allow you to access the equity in your vehicle. The more equity in your car, the more you may be able to borrow.
Title loans require collateral instead of perfect credit during the approval process. The collateral is the title to your vehicle and the most important part of your loan. For a title loan, your title must be lien-free, meaning that another lender does not have a lien on your title. A title lien is simply a lender’s legal right to your asset, which is your car. When you borrow money through a title loan or a loan to buy your car, the lender will use your vehicle as collateral to ensure the loan is paid back.
During the repayment process for a loan, the lender has a lien on your title. This arrangement means that during the repayment process for the loan, if you miss payments or default on the loan, the lender can use the lien to take your car and sell it to cover their loss. The car’s title must be lien-free if you want to apply for a loan that uses your car’s title as collateral.
Removing Liens on Car Titles and Other Lien Issues
If you are like most car title loan borrowers, you may not know much about adding names and removing liens on car titles. Let’s break down the ins and outs about removing liens on car titles and other issues surrounding liens.
If you have no lien on your car, it means you own the vehicle in full. Owning your vehicle in full can mean these benefits:
- Your Car Insurance May Be Cheaper
- You Can Apply for Any Collateral Based Title Loan
- No More Car Payments to Your Lender!
The only way to completely remove a lien from your vehicle’s title is to pay back your loan in full. Your auto loan, or current title loan must be paid to finish your loan obligation with your current lender! If you have finished your payments and obligations to your current lender, your title will become lien-free. As long as there are no liens on your car title and it is in your name, you’ll be able to apply for a new car title loan!
Adding Names to a Car Title
Once you have paid back off your lien in full, the next step is to take a look at the status of your car’s title. To apply for a car title loan, the title must be in your name and line-free. If you previously had a lien on your car’s title, it must be removed, and your name can then be added. Most lenders will initiate this step once they receive the final payment on your loan. What often happens is that a confirmation will be sent to you that the loan is paid back in full. Then, a lender will often send instructions on the process.
If your lender has not given you the proper instructions, you can easily learn how to do it yourself! The process to add names to a car title is not as complicated as it may seem. Typically, your first step should be to fill out a form at your local DMV, or Department of Motor Vehicles. This form will indicate that your loan has been paid in full, and the lienholder needs to be removed from the title. This form, along with the original title and documentation from the lender, can be used to update your title at the DMV.
Generally, there will be a fee to remove the lien from your title. Some lenders can update your information by directly communicating with your local DMV. This can allow you to request your new title online with less of a hassle! Once you receive your new title, your lienholder section will be blank, and you are free to apply for a new car title loan!
When you need to add a name to a car title and you are the sole legal and registered owner, you can easily do so at the DMV. Generally, all you will need to do is fill out a title request form and enter the information of the person you want to add. There is often a fee for this request, but you will likely receive the new title the same day you apply for the change! Adding names and removing liens on car titles doesn’t have to be complicated.
What Documents Will I Need to Apply for a Car Title Loan?
Once the names have been added and the title is lien free, the next step is to apply for a car title loan! Like most loans, there are a few documents you will need to submit in order to verify your information and vehicle ownership.
Typically, you can expect to need these documents to apply for a car title loan online:
- Proof of Address: Most future borrowers use utility bills, recent credit card statements, or even their voter registration card.
- Proof of Income: During the approval process, a loan agent will look at your income and determine what you can afford monthly for a title loan payment. Typically, you can submit bank statements, paystubs, or even a disability award letter if applicable. You do not need traditional income to apply for a title loan. If you have retirement income or even worker’s compensation as your main source of income, you may be able to use that as proof of income!
- Recent Photos of the Vehicle: Typically, an in-person inspection can be required to determine the condition of the car. With ChoiceCash Title Loans, you can skip this step with just a few photos of your car! Take photos of the back, front, and sides of the vehicle.
- Car Title: After learning about adding names and removing liens on car titles, you can be more prepared for this document! It must be in your name, and it must be lien-free to be submitted.
- A Photo ID: This will help a loan agent verify your identity! You can submit your driver’s license, passport, or even military ID if applicable.
What Can I Use My Title Loan Funding For?
Learning about adding names and removing liens on car titles can help with the approval process. But, if you are like most borrowers, you want to know about the status of your cash!
Unlike other types of traditional loans, title loans can be used in a variety of ways. Some of the most common ways that people spend their title loan funds are:
- Wedding Expenses
- Funeral Costs
- Vacation or Travel Expenses
- Home and Car Repairs
- Home Renovation Projects
- Debt Consolidation
- Catching up on Bills or Unexpected Expenses
Title loan borrowers can come from all different types of credit backgrounds and financial histories. If a financial emergency has hit and you need extra cash, a title loan may be able to cover it!1
Applying for a Title Loan After Adding Names and Removing Liens on Car Titles
Once you’ve learned all about adding names and removing liens on car titles, it’s time to learn about applying for a title loan!
With loan options like ChoiceCash Title Loans, the entire approval process can be easy and hassle-free. You can expect just three simple steps:
- Submit an Inquiry Online or Over the Phone
- Send in a Few Documents and Verify Your Information
- Get Approved and Get the Cash You Need!1
If you are qualified for a ChoiceCash Title Loan, you can get your funds in as little as one business day.1 So why wait to see if you are qualified for a title loan? Get started on your loan today by going online to the website, or by calling a ChoiceCash Title Loan agent at 855-422-7402. It can take just a few minutes to fill out a prequalification form!1