When the unexpected happens, you need to make decisions that may be quick, but your decision can be a smart one. But can you get title loans while still making payments? 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 in order to get approved! The flexible thing about online auto title loans, is that the requirements are extremely lenient. And some lenders may be able to help you out, even if you are making car payments or have bad credit. The answer is yes! It is still possible with some eligibility requirements to get a car title loan!
What is a Title Loan and How Can I Obtain the Title to My Car After I Have Paid Off an Auto Title Loan?
For those unfamiliar with these loans, title loans are a type of secured lending, which uses a borrower’s vehicle as collateral for a loan amount. The title loan amount and eligibility are determined by the value of the car, as well as the borrower’s ability to repay the title loan and their earnings. One of the best parts about a title loan is that things like your credit score or credit card payment history aren’t a significant factor when applying!
First, let’s talk about what a lien is. A lien is a method of protecting the right of a vehicle owner, seller, or financial institution to take legal actions if they do not make payments on a loan or purchase. If you purchase a new car and take out an auto loan, then your lender puts a lien on your car title and becomes a lienholder. Vehicle titles include the names and addresses of the lienholders, which may be private individuals or financial institutions such as credit unions.
How Does the Auto Title Loan Process Work If 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—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 vehicle title loans. This is one of the main reasons why people apply for these loans regardless of their credit score.
Still not sure where to begin when looking for a car title loan? Call us today and 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.
What is Required to Apply for a Title Loan?
When applying for a car title loan, you will need to provide several pieces of information. While this list may vary, this is a general look at what you will want to have on hand.
- A Lien-Free Vehicle Title
- A Valid Government-Issued Photo ID
- Proof of Income
- Proof of Residence
- Several Pictures of Your Motor Vehicle
- Valid Car Insurance
What Can I Use for Proof of Income When I Get a Car Title Loan?
While it is very common for people to use a recent pay stub as proof of income for a car title loan, it’s hardly the only thing you can use. Some other common things used to demonstrate the ability to pay for a car title loan are:
- Worker’s Compensation
- Child Support
- Social Security
Are There Hidden Fees in Car Title Loans?
There shouldn’t be hidden fees in a car title loan if you are using a reputable lender. Instead, they do their best to create clear, easy to understand loan agreements, and give borrowers straightforward answers to any questions they may have about the title loan process. They don’t include things like balloon payments, which are enormous payments that fall into borrowers’ laps at the end of their loans. Similarly, they don’t include prepayment penalties; they don’t punish borrowers for trying pay their loan back early3. Be sure to read your loan agreement carefully and ask the lender questions about anything you don’t understand.
How Much Can I Get for a Car Title Loan With my Car?
The amount of money you can get for your car will depend on a few different things. The most important ones are:
- Value of your car
- Your monthly income
- Length of the loan
The value of your car is what determines the absolute maximum amount of money you can potentially borrow with a car title loan. Lenders determine the value of your car by taking a variety of factors into consideration, for example, the mileage, make and model, condition of the interior and exterior, year, etc. Your monthly income is used to calculate the amount of money you can afford to pay back each month. And finally, the length of the loan determines the size of the monthly payments. You should note that some states restrict the lengths of car title loans, which can impact the size of the monthly payment.
What Happens if I Can’t Pay Back My Car Title Loan?
If you find yourself struggling to keep up with your car tile loan payments, it’s vital that you get in touch with your lender. Borrowers who fail to keep up on their payments can have their car repossessed. While the repossession process varies from state to state, it does tend to follow a general pattern. When a borrower defaults on their car title loan, their lender may be required to send them a right to cure notice. This is to inform them that they have a limited grace period during which they can repay the entire balance of their loan. If they fail to do so, their car becomes eligible for repossession by the lender.
Once the repossession is complete, the lender will likely auction the car to attempt to recover their money. At this point, the relationship between the lender and the borrower may be at an end. In some states however, lenders may continue to seek payment from borrowers if the proceeds from the auction don’t cover the remaining loan balance. In other states, lenders must return any excess money over the remaining balance.
How Title Loans Work with Max Cash Title Loans 2
An auto title loan is a secure loan that’s obtained when a lien is placed on your car’s title. Using the value of your vehicle, as well as proof of income, title loan lenders will determine your capacity to repay a specified amount of money.
One of the best things about title loans is that whether you’ve got a bad credit score or concerns about your credit check, you may still qualify for an auto title loan! Credit is not a significant factor with title loan requirements. Furthermore, as you maintain monthly loan payments, the borrower will be able to keep driving their vehicle throughout the installment loan agreement.
While the application process may vary depending on the title loan company and state laws, here is what you will typically need for an online title loan application:
- Proof of Income
- A Clear Title
- Pictures of the vehicle
- A Few References
- A Government-Issued Photo ID
- Proof of Residence
- Valid Car Insurance
One of the best things about working with Max Cash Title Loans is that we try to find title loans that work for our customers.5 That means, no prepayment penalties, no additional fees, and options to refinance at the same competitive interest rate at a later date.
Contact Max Cash Title Loans for a Title Loan Today!
If you want a title loan that has your best interest in mind, contact Max Cash Title Loans today. We’re available seven days a week for your title loan needs, and we also offer a quick online application form to make the process simple. Whether you live in California or South Carolina, contact us today to learn more about how we can help you!