Getting a Title Loan While Still Making Payments

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: May 20, 2023

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Getting a Title Loan While Still Making Payments: Everything You Need to Know

Getting a title loan can be a quick and convenient solution if you’re in a financial bind and need emergency cash. However, what happens if you’re still making payments on your car? Can you still get a title loan? The answer is yes, but there are some important things you need to know.

In this article, we’ll discuss everything you need to know about getting a title loan while still making payments. We’ll explain how title loans work, the eligibility requirements, the application process, and more. So, let’s get started.

Looking to get a car title loan with just a bill of sale? Find out if it’s possible and how to do it in our latest article “Can You Get a Car Title Loan with Just a Bill of Sale?” written by TFC Title Loans experts. Don’t miss out on this informative read!

What are Title Loans?

Title loans are usually available to people who have bad credit or no credit history. This type of loan can be tempting because it is easy to get approved, and you can receive the money quickly. However, it is essential to understand the risks involved with title loans.

If you cannot repay the loan, you could lose your vehicle, which can be devastating. In addition to losing your car, you may also face additional fees and charges from the lender. It is important to carefully consider your options before taking out a title loan and to make sure that you can afford to repay the loan on time.

How do Title Loans Work?

To get a title loan, you must first apply with a title loan company. The lender will inspect your vehicle to determine its current market value using a car title loan calculator and the loan amount you qualify for. You will also need to provide the lender with your vehicle’s title, proof of insurance, and a valid driver’s license.

If you still owe money on your car, the lender must confirm that you have sufficient equity in the vehicle to qualify for a title loan. This means that the current market value of your car must be higher than the remaining balance on your existing car loan. If you do not have enough equity, you may not be able to get a title loan.

Once you are approved for a title loan, you will receive the loan proceeds in your bank account. You will typically have a repayment period of 30 days to repay the loan. If you are unable to repay the loan on time, the lender may offer to roll over the loan for an additional fee.

Eligibility Requirements for A Title Loan While Still Making PaymentsGetting a Title Loan While Still Making Payments

To qualify for a title loan, you must meet certain eligibility requirements. These requirements vary depending on the lender, but typically include the following:

  • You must be at least 18 years old.
  • You must own the vehicle outright or have sufficient equity in the vehicle.
  • You must have a clear title to the vehicle.
  • You must have proof of income or sufficient income to repay the loan.
  • You must have a valid driver’s license.
  • You must have proof of insurance.

The Application Process for A Title Loan While Still Making Payments

The application process for title loans is relatively simple. You can apply online or in person at a title loan company. Here are the steps to apply for a title loan:

  1. Fill out the title loan application: You will need to provide basic information about yourself and your vehicle, including your name, address, phone number, and vehicle identification number.
  2. Provide proof of income: You will need to provide proof of income or sufficient income to repay the loan. This can include pay stubs, bank statements, or other documentation.
  3. Provide proof of insurance: You will need to provide proof of insurance for your vehicle.
  4. Allow for a physical car inspection: The lender will need to inspect your vehicle to determine its current market value and the loan amount you qualify for.
  5. Provide your vehicle’s title: You will need to provide your vehicle’s title as collateral for the loan.
  6. Receive your loan quote: The lender will provide you with a loan quote based on the current market value of your vehicle and the loan amount you qualify for.
  7. Accept the loan quote: If you agree to the loan quote, you will need to sign a loan agreement and provide written permission for the lender to place a lien on your vehicle’s title.
  8. Receive your loan proceeds: Once you have signed the loan agreement and provided written permission for the lender to place a lien on your vehicle’s title, you will receive the loan proceeds in your bank account

Two Key Factors to Consider When Getting a Title Loan While Still Making Payments

There are two key factors you need to consider when getting a title loan while still making payments on your car: positive equity and written permission from the original lien holder.

Positive Equity

Positive equity is the difference between the current market value of your car and the remaining balance on your existing car loan. If you have positive equity, you can use your car as collateral for a title loan. However, if you have negative equity, you may not be able to get a title loan.

Written Permission from the Original Lien Holder

Getting a Title Loan While Still Making Payments on your car is possible, but it can be more challenging than getting a title loan on a vehicle that you own outright. Title loan companies offer car title loans, also known as auto title loans or vehicle title loans, which allow you to borrow money using your car’s title as collateral. However, if you have an existing car loan, you will need to have sufficient equity in your vehicle to qualify for a title loan.

To get a title loan while still making payments, you will need to contact a title loan lender or title loan agent and go through the application process. The eligibility requirements for title loans vary depending on the lender and the state you live in. Typically, you will need to provide proof of income and ownership of the vehicle’s title. You may also need to undergo a physical car inspection and provide a bank account for loan proceeds.

Two key factors that will determine your eligibility for a title loan while still making payments are the current market value of your car and the remaining balance on your existing car loan. If your car has positive equity, meaning its current market value is higher than the principal amount of your existing car loan, you may be able to borrow money against your car’s title. However, if your car has negative equity, meaning its current market value is lower than the principal amount of your existing car loan, you may not qualify for a title loan.

Once you are approved for a title loan, you will need to repay the loan amount plus interest and fees within a specified repayment period, typically 30 days to a few months. If you fail to make your monthly payments, the title lender may repossess your car and sell it to recoup their losses. Therefore, it is essential to make sure you have sufficient income to make your monthly payments before taking out a title loan while still making payments on your car.

Conclusion – Getting A Title Loan While Still Making PaymentsGetting a Title Loan While Still Making Payments

If you have an existing car loan, you may still be able to get a title loan if you have enough equity in your vehicle. Title loan companies offer collateral-based loans, using your car’s title as security for the loan. The loan amount is usually based on the current market value of your car, less any remaining balance on your existing loan.

To qualify for a title loan, you must have a clear title to your vehicle, meaning there are no liens or other claims against it. You must also have sufficient income to repay the loan, as federal law requires lenders to ensure that borrowers can afford to make the monthly payments.

The application process for a title loan is usually quick and easy, with many lenders offering online applications. You will need to provide information about your vehicle, including the make, model, and vehicle identification number, as well as proof of income and a bank account for the loan proceeds to be deposited into.

Interest rates on title loans can be high, so it’s important to shop around and get a loan quote from several lenders before making a decision. You should also be aware that if you default on the loan, the lender may repossess your car.

In summary, getting a title loan while still making payments on your car is possible, but it’s important to understand the eligibility requirements, application process, and repayment period. Make sure you have enough equity in your car and can afford the monthly payments before applying for a title loan.

Looking for a quick way to get cash? Wondering, “Can you get a title loan on a salvage title car?” Look no further than TFC Title Loans. Our team of experts can help you get the cash you need, even if you have a salvage title car. Apply today!

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Disclosures

DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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