Learn About How You Can Get a Title Loan if Your Car is Not Paid Off!
If you have found yourself in a situation where you need funding, there are many loan options to choose from. However, out of all the choices available to select, a car title loan may be the best alternative financial resource for you. Borrowers would only need to use their car’s title as collateral to retrieve the funds they need for an unexpected expense! That means you could potentially access the equity in your vehicle and turn it into cash! But is it possible to obtain an auto title loan when you haven’t paid off your car?
Although people usually have their vehicles paid off before getting a title loan, those still financing their car are not discouraged from applying. Even if you’re currently making payments to your vehicle, you could still be eligible for funding!
How Can I Get a Car Title Loan if My Car is Not Paid Off?
Generally, borrowers apply for auto title loans with a paid-off vehicle, or one that is close to being paid off. Therefore, you could still qualify for a car title loan when the car is not paid off yet! Keep in mind that title loan lenders will focus on these two basic requirements when you apply for a title loan:
- Enough Income to Support a Car Title Loan Payment
- The Positive Equity in Your Vehicle
When you use your vehicle title as collateral, title loan lenders use the equity behind to determine your eligibility. Even if you are still making payments on your car, you may have enough positive equity to qualify for funding. However, if you are still financing your car, the first thing you need to do is get a payoff amount from your current auto loan lender.
Then, afterwards, you can get a better idea of your car’s current equity amount. From there, you can sign a few documents and pass your current lender information over to your new lender. That’s all it really takes to find out if you can qualify for a title loan if your car is not paid off!
How Do I Get a Title Loan?
In addition to having the right amount of equity in your car, you must be able to prove your ability to pay off a loan. You don’t need a 9-5 to qualify for a title loan, but you must be able to afford it one way or another. That’s why you must choose loan terms that you can afford in the long run.
Before you apply for a title loan on a car that is not paid off, you should consider how it could factor into the loan amount you’d owe. When trying to get a car title loan on a financed vehicle, the remaining total you owe on the car will apply to the title loan’s principal balance. But don’t worry! Your vehicle may have a good amount of equity to help cover your bills or expenses without breaking your wallet!
If you want to obtain a bigger loan, your income and equity must have a significant amount. To find your vehicle’s current equity rate, you could use different online tools to help you calculate it. Once you find an estimate on your car’s value, a title loan lender can help you determine if it qualifies for emergency cash!
Are Documents Necessary to Acquire an Auto Title Loan if My Car is Not Paid Off?
When you’re inquiring about a title loan with a financed car, you would need to submit some documents to your lender. It may sound daunting, but it might be way simpler than you think! Just look around your house or car for the right documents. Some title loan lenders will require you to send your paperwork via mail or in person, while others can let you submit them online! Whichever method you choose, it could be easy to meet this requirement.
It’s essential to note that each state might require additional documentation for you to submit, but you can expect to turn in the following information:
- A Title to a Qualifying Vehicle in Your Name
- Proof of Valid, Government-Issued Identification
- Proof of Income
- Proof of Address
- Some Personal or Professional References
Be aware that some title loan lenders might ask to conduct a car inspection. While most lenders prefer to do it in person, others might allow you to send a few pictures of your vehicle online. Ask your title loan lender or provider if this is a requirement for a title loan.
Where Can I Get a Title Loan if My Car is Not Paid Off?
Although there are different title loan providers, some might benefit you more than others. For example, if you inquire about a car title loan serviced by LoanMart online, you could get funding quickly! Additionally, you could fund your money to a debit card or receive them through a direct deposit!
But no matter which way you opt to get a title loan, educating yourself about them before applying is important. Once you feel confident, you may be ready to get the funds you need for an emergency!