Title loans are a unique type of loan that allows you to access the equity in your car. If you are searching for cash but your vehicle isn’t fully paid off yet, you might be wondering, “if I am financing a car can I get a title loan?”
The answer is yes! A title loan is based upon the equity in your car, not the number of payments you have left on your vehicle. Title loans can be a more flexible loan option when it comes to eligibility and the approval process. With loan options like ChoiceCash Title Loans, you’ll have access to one of the most flexible approval processes in the business. Even if you are financing a car, you may still be able to get a title loan!1
How Can I Get a Title Loan if I am Financing a Car?
A title loan is a type of secured installment loan. A secured loan can often have more flexible requirements during the approval process since they are secured through collateral. For a title loan, the collateral will be the title to your vehicle.
To qualify for a car title loan, you will need to meet these simple requirements:
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- Have a Qualifying Car
- Have a Car Title in Your Name
- Be Able to Prove Your Income or Alternative Income
- Be at Least 18 Years of Age
To be approved as collateral for a title loan, your vehicle must have a certain amount of equity. Equity can be positive or negative, and you can still have positive equity if you are financing a car! Equity is based upon the difference between the market value of the car and how much you owe on it.
Even if you are financing your vehicle, it may still have enough market value to offset how much you still owe. This means that you could still qualify for a title loan while you are financing your vehicle! When you apply for a title loan with a financed car, you can expect the following:
- The Title Loan Company Will Pay for The Rest of Your Payments
- That Amount Will Be Added to Your Total Loan Amount to Pay Back
- You Can Pay off Your Car and Get Approved for a Title Loan!
How Will I Know if My Car will Qualify for a Title Loan if I Am Still Financing?
Not every car will qualify for a title loan, but many do! A car is eligible for a title loan when it has enough equity. If you are not sure what your financed car is worth in terms of equity, you are like most borrowers! That’s why ChoiceCash Title Loans created a title loan calculator to make the estimating process easier.
Simply input this information into the title loan calculator:
- The Vehicle’s Make, Model, Year
- The Vehicle Style
- The Miles on the Odometer
- The Number of Payments Left on Your Car
All of these factors will help a loan agent determine how much equity you have stored in your vehicle! This information will help deem you eligible enough for a loan and determine what your loan amount is. For a title loan, your loan amount isn’t just based on your credit score like it is for traditional bank loans. Instead, your loan amount will be based upon your car’s value and your income! The title loan calculator can help you find out what your estimated loan amount will be, and it’s free to use.
How Much Money Can I Get from a Title Loan if I am Financing a Car?
Typically, when you apply for a title loan you will be offered anywhere from 25%-75% of your vehicle’s value. The more your car is worth, the bigger your loan amount could be!
During the approval process, a title loan agent will look at your income and the value of your vehicle. While your credit history may be considered, it isn’t the focus of the approval process.
Your income and vehicle will determine what your loan amount will be. If your vehicle has a lot of equity and your income supports a larger monthly payment, your loan amount can be larger.
Even if you are financing a car, your vehicle may have a decent amount of equity. As an applicant with a qualifying car in your name, the last qualification you will need to meet is with your income! To find out your estimated loan amount, you will need to provide proof of income. Generally, for proof of income, you can submit bank statements, invoices, paycheck stubs, Social Security award letters, and more. From there, a loan agent will look at your income and see what you can afford monthly to determine your loan amount.
What Documents Do I Need to Have if I am Financing a Car and I Want a Title Loan?
If you are financing a car and you want to get a title loan, there are a few documents that you will need to submit during the approval process. These documents can vary from state to state, but you can expect to need:
- Photo Identification: To verify your identity during the approval process, you will need to submit a government-issued photo ID. Most borrowers use their passport, driver’s license, or even military ID as proof of identification.
- Proof of Address: To place a loan inquiry in your state, you must be able to prove that you live there. Typically, a lot of borrowers will use recent mail as proof of address. Recent credit card statements, utility bills, or even your voter’s registration card will count as proof.
- Proof of Income: You do not need a regular 9-5 to apply for a title loan! A loan agent will ask for proof of income to verify your finances. Alternative forms of income like self-employment or disability are also accepted as proof of income.
- Recent Photos of the Car: While many title loan companies require an in-person vehicle inspection, you can bypass this step through ChoiceCash Title Loans! Simply send in some recent photos of your vehicle and odometer reading to skip an inspection.
- Your Car’s Title: It must be in your name to be submitted during the approval process. If it is not currently in your name, you can request a title transfer at your local DMV (Department of Motor Vehicles).
For your convenience, all of these documents can be submitted to a loan agent via email or fax when you choose to work with ChoiceCash Title Loans!
How do I Choose the Right Title Loan Option if I am Financing a Car?
If you are like most borrowers, your biggest concern about your loan may be the fact that you are still financing a car. While that may be a concern, your biggest worry should be whether or not you chose a good loan option!
There are many different title loan options to choose from online. Picking the right one can make or break your loan experience! As a future borrower, you should look for a loan with:
- Competitive Interest Rates: The interest rates you are offered will make or break your loan experience. The more competitive they are, the better off your wallet will be! Lower interest rates mean you will pay back less in the long run. Title loan options like ChoiceCash Title Loans can offer better interest rates that help keep your monthly payments affordable.
- A Flexible Approval Process: With a flexible approval process, you’ll be able to apply for a title loan even if you are still making payments on it. There are loan options like ChoiceCash Title Loans that can offer a flexible loan inquiry process that accepts borrowers from all different kinds of financial backgrounds!
- Payments that Start Low, and Can Get Lower:2 Wouldn’t you like to be rewarded for being a responsible borrower? With ChoiceCash Title Loans, there is a whole program dedicated to rewarding borrowers that make their payments on time and consistently! As long as you keep your loan account in good standing, your monthly payments will start low and get even lower as it is paid off.2 By the time you make your last loan payment, it could be half of what it originally was when you started!2
Can I Get a Title Loan Online if I am Financing a Car?
Applying for a loan doesn’t have to be a hassle. If you are currently making payments on your car, you may be curious about your eligibility as a title loan applicant. If you’re asking yourself, “if I am financing a car, can I get a title loan?”
You may be able to through flexible loan options like ChoiceCash Title Loans! ChoiceCash Title Loans was created to help borrowers from all different financial situations and backgrounds. If you are still making payments on your car, you may still be eligible for a title loan!1
If you’re ready to get started, it has never been easier. ChoiceCash Title Loans offers borrowers a quick, three-step process:
- Submit a Loan Inquiry Online, or over the Phone at 855-914-2945
- Send in a Few Documents to Verify Your Information
- Get Approved and Get Your Cash!1
If you could get your cash in as little as one business day, why wait to see if you are qualified?1 Get started today by answering a few questions about your car online, or over the phone! It can take just a few minutes to find out if you are qualified for fast cash through a title loan.1