Can You Get Title Loans on Financed Cars?
Do you need a title loan, but you’re still making payments on your car? You may be wondering if it’s even possible to get a title loan on a financed vehicle. Life can be unpredictable, and sometimes you need extra cash through a car title loan, but your car isn’t fully paid off yet. When it comes to accessing quick and convenient financing options, title loans on financed cars can be a viable solution. Before you can apply for a title loan on your financed vehicle, however, it’s important to understand the eligibility criteria for car or truck title loans.
The requirements for title loans on financed cars vary from lender to lender. But generally, you will need to be of legal age, demonstrate proof of your ability to repay the loan, provide a car or truck title in your name, and have a qualifying amount of positive equity in your car to meet the requirements of the title loan lender you are working with. Title loans use your vehicle as collateral for funding, so if you’re close to paying your auto loan off, your vehicle may have enough positive equity to qualify as collateral for a title loan.1
Additionally, since your car is used as collateral for the loan, your credit history will not be the focus of your application. Don’t let your bad credit hold you back! Getting title loans on financed cars can be an option even if your credit score is not ideal.1
If you’re still making payments on your car, then you may need to sign an authorization form during your title loan application. This helps the title lender get information about your existing car loan and pay it off. The lender will also need to assess the value of your car to determine the loan amount you may qualify for.
When comparing title loans on financed cars to other financing options, it’s important to consider the interest rates and repayment terms. With a ChoiceCash title loan serviced by LoanMart, accessing competitive interest rates and a wide range of repayment options is possible if you are eligible!1
Keep reading to learn more about how to get a title loan for a car that’s not paid off, what happens when you use a financed car as collateral for a loan, and what you need to qualify for a car title loan while still making payments on your vehicle.1
How Do I Get Title Loans for Cars Not Paid Off Yet?
If you have a car that is not fully paid off yet and you need some extra cash, getting a title loan may be an option for you to consider. Here is a step-by-step guide to applying for title loans on financed vehicles:1
- Research Your Options: Start by doing some research online to find a title lender who offers title loans on financed cars. Your goal should be to look for title lenders with good reputations, transparent terms, and competitive interest rates. To find out whether past consumers enjoyed their experience with a particular loan servicer or title lender, visit websites like the Better Business Bureau or Trustpilot. Read through both positive and negative reviews to get a balanced perspective.
- Maximize Your Chances of Being Approved: To increase your chances of being approved for a title loan on a car not paid off yet, there are a few tips you can follow. First, make sure to have a stable source of income, provide accurate information, and double-check that all of your documents are valid before you start your application.1 Also, make sure your current loan is in good standing.
- Apply Online or Over the Phone: If you are ready to apply for a ChoiceCash title loan, simply fill out a prequalification form online or over the phone with a title loan agent. Make sure to be honest and accurate with the information you provide to avoid any issues with your application down the line.1
- Get Your Documents Together: If you are pre-approved for a ChoiceCash title loan on a car that is not paid off yet, the second step is to submit a few documents to verify your information.1
- Find Out if You Are Approved: After submitting your application and documents, everything will be reviewed for completeness. If you are finally approved for a loan, the last step is to choose how to get your money and sign your loan contract. With ChoiceCash title loans, you can choose direct deposit to get your funds in as little as 24 hours. Some borrowers can get their money the same day they apply!1
By following these steps and tips, you can easily navigate the process of getting a title loan on a car that is not fully paid off yet. If you have any questions about applying for auto title loans on financed vehicles, simply call 855-422-7402 to speak directly to a ChoiceCash title loan officer.1
What Happens When I Use a Financed Car as Collateral for a Loan?
If you are considering getting a title loan on a financed car, it is important to understand how title loans work and what it means to use your vehicle as collateral for a loan. While title loans can provide borrowers with quick access to cash, using a car as collateral for emergency funding adds an additional layer of complexity to the process.
When you use your financed car as collateral for a title loan, the title lender will pay off your existing auto loan, and add a lien on your title after you sign your loan contract and the loan is funded. You will still be able to maintain access to your car while you are paying off your title loan as long as you are on time with your payments.
But if you can’t manage your payments and default on the loan, the lender has the right to repossess the vehicle. This means that you could potentially lose your car if you are unable to meet your loan obligations. Call your lender or loan servicer to discuss your options if you are struggling with your payments! While most title lenders are willing to work with you to avoid a negative outcome like vehicle repossession, it is incredibly important to prioritize your financial obligations and avoid loan default.
What Do You Need to Get a Car Title Loan While Still Making Payments on Your Car?
When you need some extra cash but you still have a balance on your car loan, a car title loan can still be a lifeline. Documentation verification plays a crucial role when applying for a title loan on a car with ongoing payments. You’ll be asked to submit a driver’s license or another valid, government-issued photo ID, proof of income and address, a vehicle title in your name, and a few photos of your car to complete a virtual inspection. Your documents can be uploaded online or sent to a title loan agent via email or text message.1
Additionally, you may need to provide paperwork related to your existing loan, such as the loan agreement. The title lender may also ask you to complete and sign a form authorizing them to pay off your existing auto loan. It’s essential to have all the necessary documents on hand before you get started in order to speed up the loan approval process.1
By providing the right documents during your application, you can increase your chances of qualifying for a car title loan while still making payments on your car. Call 855-422-7402 today to learn more about applying for a ChoiceCash title loan serviced by LoanMart!1
How Much Can You Get if You Use a Financed Car as Collateral for a Title Loan?
It’s important to understand the factors that can influence the total loan amount for title loans on financed cars. The first factor is simply the value of the car. Title lenders will typically consider the make, model, year, mileage, and overall condition of the car to determine its value. Generally, the higher the value of the car, the higher the loan amount you may be eligible for through a title loan.
The second key factor is your income. Your income will affect the amount you can receive through a title loan on a financed car since title lenders will want to make sure you are able to repay your title loan funding.1
Another factor that can influence the maximum loan amount is your state of residence and the loan-to-value ratio (LTV) that the lender is willing to offer. The LTV ratio represents the percentage of the car’s value that the lender is willing to lend. For example, if the lender offers an LTV ratio of 50% and your car is valued at $10,000, you may be eligible for a loan amount of up to $5,000.
Lastly, the amount you still owe on your car or truck has a large impact on how much you can get. The approval amount for a title loan on a financed car will be divided between the amount needed to pay off your existing loan, and the amount that can be disbursed to you.1
Generally, you can expect title loan approvals to range from 25%-50% of your car’s value. The simplest way to find out how much you can personally access through a title loan on a financed vehicle is to submit a pre-approval form online or over the phone with a ChoiceCash title loan agent!1
Where Can I Apply for a Title Loan on a Financed Car Near Me?
Getting a title loan on a financed car should be a simple, fast, and efficient process.The best place to get title loans can be online! Skip the hassle of applying for a title loan in person and take advantage of a convenient online application.1
With ChoiceCash title loans serviced by LoanMart, you can expect your experience to be the priority of your application. Qualified borrowers can also expect competitive interest rates, no hidden fees, and to get their funds in as little as one business day! Call 855-422-7402 or complete a questionnaire online to get started.1