Are you strapped for cash and still making payments on your car? Financial emergencies can happen at any time, and your bank account may not be prepared to take the hit. You might be considering an alternative loan for funding– but can you get a title loan on a financed car?
The short answer is- yes! Generally, you will still be able to apply for a car title loan while you are making payments on your vehicle, but there are a few nuances to consider first.
How is it Possible to Get a Title Loan on a Financed Car?
A vehicle does not need to be fully paid off to qualify as collateral for a title loan. Eligibility for a car title loan will be based on the equity in the vehicle, not the number of payments a borrower has left.
A title loan is a secured loan, meaning that collateral is required to apply for funding. With a title loan, a borrower’s vehicle title is the collateral for the loan. If the borrower becomes unable to make payments, the collateral that was used to back the loan is then used to cover the remaining balance of the loan.
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To qualify for a car title loan, a borrower must have:
- A Vehicle with Enough Equity
- An Income to Support a Monthly Loan Payment
To be able to use your financed car to get a title loan, it must have a certain amount of equity, and you must have an income to support a loan payment. Your eligibility and loan amount will depend on both factors during the approval process.
You can still apply for a car title loan with a financed car. If you can prove your income, you have a better chance of being accepted for the cash you need!1
What Year Does My Car Have to Be to Qualify for a Title Loan?
Title loans are known for being one of the most flexible alternative loans to apply for. Cars from all years, makes, and models could potentially qualify as collateral for the loan.
You can still get a title loan on a financed car if the vehicle has enough equity. Equity is the difference between what the market value of the car currently is and what you owe on the vehicle. The less of a difference there is, the more positive equity you may have.
During the approval process, a loan agent will look at these factors to determine a vehicle’s equity:
- The Make, Model, and Year of the Car
- The Style of the Car
- The Mileage on the Vehicle
- The Modifications to the Car
- The Condition of the Vehicle
Since most candidates are not aware of their vehicle’s current equity while they are financing their car, an online tool can be used to determine this factor! ChoiceCash Title Loans has created an online title loan calculator that can be used by all future borrowers to find out if their vehicle and income qualify for a car title loan.1
Simply input your information into the tool to get both an equity estimate and a free title loan quote!1
What Documents Will I Need to Get a Title Loan on a Financed Car?
While title loans are known for being one of the most flexible loans to apply for, a loan agent will need a few documents to help verify your information.
With loan options like ChoiceCash Title Loans, these documents can be submitted online during the approval process for your convenience:
- Proof of Income: This is one of the most important documents you will submit during your loan inquiry! Most future borrowers will use their pay stubs, invoices, or bank statements to apply, but other forms of alternative income can also be accepted.
- Proof of Residence: As proof of address, borrowers can use a recent utility bill, insurance statement, or even a credit card statement.
- Photo ID: To prove your identity, you can use your driver’s license, passport, etc.
- Recent Photos of the Car: You can also skip an in-person vehicle inspection by simply submitting a few photos of your vehicle and the odometer!
- Car Title: To qualify as collateral, the vehicle’s title must be in your name.
Can I Get a Title Loan on a Financed Car if I Have Bad Credit?
If you have been turned down for other loan options before because of your credit history or lack thereof, you may be wondering if a title loan will be the same. Fortunately, title loans were created to help borrowers from all different credit histories and financial backgrounds!
With unsecured loan options, a borrower with a bad credit history is a risk to lend to. With a title loan, the collateral will help offset the risk, and allow borrowers without a strong credit history to apply to get the funding they need!1 If you want to get a title loan on a financed car, do not let your insecurity with your credit stop you from applying.1
What Can I Use My Title Loan Funding for?
An unexpected bill or expense can throw off your budget and create a stressful financial situation. Whether you are struggling with bills or medical debt, a title loan can be the right solution to cover those costs. Some of the most common ways that borrowers will use their title loan funds are:
- Medical Bills and Surgery Costs
- Debt Consolidation
- Funeral Costs
- Wedding Expenses
- Travel and Vacation Expenses
- Home and Car Repair
- Car Maintenance
A title loan has a way of covering for the unexpected! Many kinds of financial situations can be solved through a car title loan.
Where Can I Apply to Get a Title Loan on a Financed Car?
If you’re looking to get a title loan on a financed car, you can apply from the comfort of your own home! ChoiceCash Title Loans has a streamlined, online approval process that can take no time at all to complete.
Get started on your title loan today by placing a loan inquiry online through your smartphone or computer. Or, give a loan representative a call at 855-277-4847. They are available for extended hours every day of the week for your convenience!