Your vehicle’s title could be used to get the cash you need in a tricky financial situation. With a title loan, a lien can be placed on your car’s title when you decide to use your vehicle as collateral for funds.
A lien on a car title loan is simply the loan provider’s claiming partial ownership on the vehicle title for the duration of the loan. In the case of a title loan, the individual is the borrower, and the vehicle is used as collateral to secure the funding.
While you will be using your vehicle’s title to secure funding, there are loan options like ChoiceCash Title Loans that can allow responsible borrowers to keep driving their car while they pay off their loan.
What is a Lien on a Car Title Loan For?
When you own a vehicle, the title will be in your name. If you are financing your vehicle or have a title loan, a lien will be placed on the vehicle’s title while you are repaying your loan. A lien is simply the loan provider’s legal right to your asset while you are in debt.
- Collateral Changes the Game: Title loans are collateral based loans, and the collateral is the title to the vehicle. The use of collateral helps minimize the loan provider’s risk to lend money. This makes the approval process flexible to borrowers from all different kinds of financial situations and backgrounds.1
- Keep Your Keys1: A lien is also placed on the collateral once the loan contract is signed. While you are paying off your title loan, your loan provider will have a legal right to your vehicle. This can ensure payment on your loan, but your lender does not keep the car unless you fail to make consistent payments.
With loan options like ChoiceCash Title Loans, you can keep driving your car while you make payments on your loan. As soon as the loan is repaid in full, you can get your title back-lien free!1
How Can I Use a Lien on a Car Title Loan to Get the Cash I Need?
If you are a vehicle owner, you have an asset that you may be able to use to your advantage if you need cash! A truck, car, or other vehicles could be used to secure funding through a title loan.1
A lien on a car title loan could help you get the cash you need, even if you are not confident with your credit history! The process to secure a title loan can be easy and streamlined if the collateral is used. Qualified borrowers can simply sign their loan contract and get their cash in as little as one business day through ChoiceCash Title Loans.1
During the repayment process, you can keep driving your car like it is business as usual until the loan is repaid. Once the loan has been fully paid off, the lien on your car’s title will be removed. It is no longer collateral for the loan, so the lien is no longer needed. With a title loan, you get to keep your car while you borrow the cash you need to get back on your feet!1
What are the Benefits of Choosing a Secured Loan Such as a Title Loan?
For many traditional loan options, a borrower’s credit is the basis for loan approval. Their credit history will let a provider know if they are a risk to lend to, as well as what their loan amount can be. The more trustworthy a borrower is proved to be through their credit history, the more they can potentially borrow through an unsecured loan option.
With a title loan, however, the inquiry process can be different. A lien on a car title loan will affect how a borrower can apply for cash. Title loans are secured loans, and they will not have to rely on credit score or trustworthiness as heavily as an unsecured loan would. The collateral will assume most of the risk, so the approval process can be more flexible than that of an unsecured loan. Unsecured loans are considered high-risk loans. To obtain one, a borrower will likely need to have a relatively stable credit history and financial background.
Collateral-based loans have higher approval rates and can often be a better resource for borrowers that are not confident with their finances or credit history! While your credit is looked at during the approval process for a car title loan, these two factors will matter the most:
- The Value of Your Collateral
- Your Income and Ability to Repay the Loan
The larger your income and the more your car is worth, the more you may be able to borrow through a title loan! Title loans and other secured loan options can often allow for larger funding amounts than their unsecured counterpart.1
Your vehicle may still be able to qualify for a car title loan if you are still financing your vehicle! A loan agent can help you figure out how much equity has and if it can qualify for a car title loan during the approval process.
What Can I Use My Title Loan Funding For?
If your financial situation is taking a hit and you need fast cash through a title loan, you might be curious what you can use your funds for. If you are approved for a car title loan, you may be like many borrowers that need cash to get back on their feet.
Some of the most common ways that borrowers of a title loan will utilize their cash are:
- Debt Consolidation or Credit Card Consolidation
- Home Improvement Repairs, Renovations, and Maintenance
- Car Repairs and Modifications
- Covering the Cost of Dental Care
- Paying off Surgery Costs or Medical Bills
- Travel and Vacation Expenses
What is the Approval Process to Get a Lien on a Car Title Loan?
Unsecured loan options can often make potential borrowers jump through hoops to get their cash. If you want to skip this inconvenience, a title loan can offer a much more streamlined and easy approval process!
ChoiceCash Title Loans offers an online inquiry process that is just a few simple steps for your convenience:1
- Fill Out a Short Loan Inquiry
- Send in a Few Documents
- Find Out if Your Car Qualifies for Cash!
It can take just a few minutes to find out if your vehicle can qualify for the cash you need!1 ChoiceCash Title Loans is giving borrowers an opportunity to turn their care into the funds they need to get back on their feet.1
The approval process is streamlined and simple whether you choose to fill out an inquiry online, or over the phone with a representative. Just send in your documents online and answer a few questions to find out if you can qualify for a lien on a car title loan today!1
Where Can I Apply for a Car Title Loan Online?
Life can happen unexpectedly, and a car title loan may be the answer to your financial woes. If you are ready to find out if your vehicle qualifies for cash, you can do so online from the comfort of your home! Simply use your smartphone or computer to fill out an inquiry form with ChoiceCash Title Loans. Or, feel free to call a loan representative at 855-422-7402 for a more personalized loan experience.
Qualified borrowers can get their cash in as little as one business day!1