If you are thinking about a car title loan, and are still paying off your car, you may be wondering whether your car needs to be paid off for a title loan. The flexible thing about title loan funding is that the car requirements are extremely lenient. And there are some lenders that may be able to help you out, even if you are making car payments or have bad credit. So if you’re thinking about short term loans like payday loans, credit card cash advances, or other uncertain forms of funding, you may want to consider a title loan as a more favorable alternative!
Not sure where to begin when looking for a car title loan? Let the experts at Max Cash Title Loans help you with the search! We are the #1 nationwide online title loan marketplace. We work hard to connect with people with vetted lenders all across the country.5
Below you will find more information on getting a car title loan while your car needs to be paid off. You’ll also learn about title loans in general.
How Does the Auto Title Loan Process Work When My Car Needs to Be Paid off?
There are going to be essentially two scenarios when your car needs to be paid off. One being, your car is being financed by either a dealership or a private lender. Or you have an existing title loan on your vehicle.
In either of these scenarios when you want to get a title loan, the process will work slightly differently when applying for a title loan while you own your vehicle outright.
You will have to let your potential new lender know about the existing loan, and how much you have left to pay on it.
From here, the title loan lender will let you know about eligibility. If approved the new loan amount can then be used to pay off the existing loan. Any funds leftover from the transaction can either be used or returned. The new car title loan will come with new repayment terms, and interest rates, also known as an annual percentage rate.
What Factors Do Short Term Car Title Loan Lenders Look for When my Car Needs to be Paid Off?
Before applying for a title loan on your car that you are still paying off, it will be helpful to know about the different factors that lenders will look at for eligibility during the loan application.
Here is what the important variables are for loan approval during the application process:
- Your income— all sources of your income can be looked at by a lender and will be taken into account. The flexible thing is that there are all sorts of income that can be used for a title loan. For example, social security income, awards, etc.
- The existing loan on your vehicle / your equity in the vehicle and the value of the car—when applying with a new lender, they will need to know the loan amount that you have left to pay, and factor in additional funds if applicable.
- Your ability to repay the loan—in order to gauge whether a borrower can make their monthly payments, lenders will ask about major expenses.
And so, as you can see, your credit score or credit history isn’t a huge factor for eligibility for these loans. One reason why people apply for these loans.
Do I Have to Let my Previous Lender Know That I am Applying for Another Loan?
In general, there is no need to do so, when you are simply applying. Your new lender should be able to help you make the remaining payment with your previous lender, and with the title transfer/ lien removal. All title transfers etc. are done through your local Department of Motor Vehicles (DMV). Some lenders may take care of that process for you.
Documents to Have When Applying for a Car Title Loan that is Not Paid Off?
Here are some of the documents that will be helpful when applying for a new loan:
- A State-Issued Photo ID (Driver’s License, passport, etc.)
- Proof of income
- The vehicle title (if possible)
- Proof of residency
- Previous loan and lender information
- Several pictures of your car
- 3 references
- Proof of insurance
Where is the Best Place to Start When Looking for an Auto Title Loans?
Not sure where to start when looking for an online title loan? Looking for options can be time-consuming enough, and add an existing loan to refinance into the mix, things can become overwhelming.
When looking for a title loan start with Max Cash Title Loans. Instead of being a lender ourselves, we work with an online network of hand-picked lenders. And so, we have done all that hard search work for, and can save you tons of time and effort.
In addition to that, the lenders that we work with may be able to provide tons of benefits:
- Flexibility with Repayment4
- Competitive Interest Rates4
- Low Monthly Payments4
- No Additional Fees that are Hidden3
- Loan Payment Plans for a Variety of Budgets4
- A Transparent Loan Agreement
These are just a few of the benefits that could be made available with these secured loans, through the lenders that we work with.
If you have any further questions about title loan requirements, how title loans work, lienholders, or anything else, give us a call or check out our FAQ page. We are here 7 days a week when you need help or have questions about title loans and your personal finances.
If you are ready to begin the application process, simply head to our website and fill out a title loan application, or give us a call/send us a text to get things rolling. Once approved for a pink slip loan, the funds could be sent to your bank account or picked up at a Moneygram location as soon as the next business day.1 2 5