More than 100 million people in the U.S. are currently making payments on their cars, trucks, and SUVs. If you took out a loan to purchase a vehicle, you may be wondering whether this affects your eligibility for a title loan. Can I get a title loan while still making payments on my vehicle? Here’s what you need to know:
How Do Title Loans Work?
A title loan is a secured loan that a borrower can obtain by using the title to their car, motorcycle, or RV as collateral. You won’t need to hand over your keys if you obtain a title loan. You can still continue to use your vehicle while you repay the loan. The lender will only take ownership of your vehicle if you stop making payments.
Does Your Car Need to Be Paid Off to Get A Title Loan?
Many people assume that they won’t qualify for a title loan if they are still making payments on their vehicle, but that’s not necessarily true. If you are making payments, your eligibility for a title loan will depend on several factors, including your equity in the vehicle.
Your equity is the difference between the value of your vehicle and the balance of your loan. For example, if your vehicle is worth $10,000 and you owe $2,000, your equity is $8,000. If you have equity in your vehicle, chances are we could help you get approved for a title loan.
But if you still owe a lot of money on the vehicle, this could negatively affect your odds of approval. You will not get approved for a title loan if the balance of your loan is greater than the value of your vehicle.
Some lenders will approve you for a title loan under the condition that a portion of the money is used to pay off the remaining balance on your auto loan debt. For example, if you still owe $2,000 on your vehicle, a lender may offer you a loan for $5,000 under the condition that $2,000 of this loan is used to pay off your auto loan debt. Make sure you discuss these terms and conditions with your lender before accepting the loan.
Can You Have Two Title Loans Using the Same Vehicle?
If you are still making payments on a previous title loan, you may wonder whether or not you can obtain a second title loan. Unfortunately, in most cases, it is not possible to take out a second title loan on the same vehicle unless you have completely paid off the first one. If the first one is paid off, you are free to use the same title to obtain a second title loan.
How Much Can You Get For A Title Loan?
The amount you are approved for will depend on a number of factors, including:
- Value of your vehicle
- Your ability to make payments
- State laws
The lender will need to assess your vehicle to determine how much it is worth. The make, model, mileage, age, and condition of the vehicle will impact its value. Usually, you cannot borrow more than your car is worth.
Your income will also affect the amount of your loan. The lender will review your income to determine how much you are capable of paying each month. This ensures you are not approved for a loan that you cannot afford to repay.
Finally, the laws in your state may impact the amount of your title loan. Certain states have established laws that set title loan minimums and maximums. For example, the minimum title loan amount in Georgia is $3,010. This means if your car is worth less than $3,010, you will not be able to take out a title loan in Georgia.
How Can You Get A Title Loan?
You can apply for a title loan online, by phone, or in-person. During the application process, you will need to submit certain documentation, including:
- Your driver’s license
- Your car title
- Proof of income
Be prepared to provide this documentation in addition to other information requested by the lender. You won’t have to wait weeks to find out whether or not you are approved—title lenders are known for approving applications and distributing money to borrowers quickly.1
Get the Cash You Need Fast with A Title Loan
If you’re in need of cash fast, start the process of applying for a car title loan online with LoanCenter today. Fill out an application, submit the required documentation, and see if you can get the cash you need as quickly as possible. That’s all it takes to apply for the cash you need to resolve your financial troubles!
This is not a guaranteed offer of credit. Loan approval is subject to meeting the lender’s credit criteria, which include demonstration of your ability to repay the loan, providing collateral of acceptable value and equity, and the grant of a first priority lien on your motor vehicle.