If you’re struggling to make ends meet, the key to getting the cash you need might be using your vehicle as collateral to secure a title loan. Unlike traditional personal loans, title loans are processed quickly, so you can get the cash you need as soon as possible. Title loans are also easier to qualify for, so you may be eligible for one even if you aren’t eligible for a traditional personal loan.

Title loans, also known as car title loans or auto title loans, are a type of secured loan where borrowers use their vehicle title as collateral in exchange for immediate cash. This financial tool is an ideal solution for anyone needing quick access to funds without going through the time-consuming process of traditional bank loans.

Benefits of Title Loans

Quick Access to Cash

The most significant benefit of title loans is the speed at which they can be acquired. The need for urgent cash could arise from medical emergencies, unplanned expenses, or sudden bills. With a title loan, this money can typically be available within the same day of applying, allowing you to address your financial needs promptly.


Traditional loans often come with stringent eligibility criteria, requiring good credit scores, solid employment history, and substantial income. However, for title loans, the primary concern is the current market value of the vehicle being used as collateral. Additionally, a reliable source of income is usually necessary to reassure lenders that you will meet your repayment schedule.

No Impact on Credit Score

A title loan doesn’t require a credit check, making it an ideal solution for those with poor or no credit history. Moreover, making timely payments on your title loan could potentially improve your credit score.

Addressing the Accessibility of Your Vehicle during a Title Loan Tenure

A common misconception about title loans is that you will lose access to your vehicle. In fact, one of the distinguishing factors of title loans is the continued use of your vehicle.

Freedom to Use Your Vehicle: As long as your loan is in good standing, you maintain possession and use of your vehicle. This means you can continue to commute for work, do your regular errands, and live your life generally uninterrupted.

Not Losing Physical Possession: The lender secures the loan with your car’s title, not the vehicle itself. Therefore, the borrower retains physical possession of the vehicle while paying off the loan.

Terms and Conditions: Certain terms and conditions may apply to this aspect of title loans. For example, the lender might require the vehicle to be fully insured during the loan tenure. Always review the terms thoroughly to understand what is expected during the loan period.

You won’t lose access to your vehicle if you use it as collateral for a title loan. If you’re thinking about applying for a title loan, you might be wondering whether you can use your vehicle as collateral if you’re still making payments on it.

Title Loans for Cars Not Paid Off

Can You Get a Title Loan on a Financed Car?

Securing a title loan when your car is not yet fully paid for, otherwise known as a financed car, is a common question for many individuals considering this avenue of financial assistance. It’s an important topic to delve deeper into since it largely impacts the feasibility of attaining a title loan.

When talking about a financed car, it means that you have a remaining balance on your car loan, and it’s crucial to understand how this may affect your eligibility for title loans.

Getting a Title Loan on a Financed Car

When considering car title loans, your vehicle’s title holds significant value. However, by having a financed car, it means the lender also has a vested interest in your vehicle. It’s a complex process where you’re essentially offering collateral in which you don’t hold full ownership.

Fortunately, some lending institutions accommodate situations like these. But it would largely depend on the balance remaining on your car loan and the vehicle’s current market value. You must have equity in your vehicle, meaning the vehicle’s market value should be higher than your outstanding loan balance.

When you apply for a title loan on a financed car, the title loan company will first settle any outstanding balance with your original lender and then apply any remaining funds to your new loan. Essentially, the title loan company re-finances your car and then extends you a loan against your vehicle’s title.

What Other Factors Will Impact Your Eligibility for a Title Loan Can You Get Title Loans for Cars Not Paid Off?

Influence of a Reliable Income Source and Consent to Credit Check on Your Eligibility

While equity in your financed car is paramount, additional factors, such as your income sources and a credit check, may also influence your eligibility for a title loan. Lenders need to be confident that you can pay back the loan, signaling the importance of having a reliable income source.

This could be from employment, businesses, retirement benefits, or even regular funds from a settlement or an estate. Proof of these income sources would be required in most cases. On the other hand, agreeing to a credit check means allowing lenders to inspect your credit history. Lenders might do this to understand your previous lending and repayment habits better before deciding the loan amount and the interest rates.

Importance of Consulting with Lenders About Eligibility

It’s crucial to consult with potential lenders about eligibility before applying for a title loan on a financed car. Lenders have different policies, and some may not accept a vehicle that’s still being financed as collateral. Others, however, may be willing to settle your outstanding balance and then extend a new loan against the title.

Steps to Secure a Title Loan on a Car Not Paid Off

If you decide to secure a title loan on a financed car, here are the basic steps you can follow:

  1. Thorough Research: Start by conducting thorough research on different title loan lenders. Check for their policies regarding financed cars. Look for lenders who accept financed cars as collateral.
  2. Consultation: Reach out to these potential lenders and discuss your specific situation. Make sure to understand their terms and conditions.
  3. Application Submission: Submit your application along with the necessary documents such as proof of income, driver’s license, etc. Include the vehicle’s make, model, year, mileage, and condition.
  4. Loan Approval: Upon your loan application approval, your new lender pays off your existing lien-holder (your financed car’s current lender), which then transfers the vehicle’s title to the new lender.
  5. Get Your Funds: After your previous loan is satisfied, the remaining funds from the title loan are made available to you.

In conclusion, while securing a title loan on a financed car might seem daunting, it is feasible depending on your circumstances. You must gather detailed information, consult with potential lenders, and thoroughly understand your obligations before you proceed.

Title Loans for Cars Not Paid Off

Securing a title loan on an unpaid vehicle carries unique considerations and possibilities. While the vehicle’s title is a crucial component, it is not the only factor that decides your eligibility. The prime requisites include your car’s resale value and how much equity you possess in the vehicle.

It’s crucial to have equity in the vehicle, which entails that the car’s market value is more than what you owe on it. If your car’s value is $18,000 and you have an outstanding balance of $10,000, you have $8,000 equity. Nevertheless, different lenders might have distinct eligibility criteria.

Calculating Your Car’s Resale Value

Several factors come into play when calculating a vehicle’s resale value. First, tangible elements such as make, model, year of manufacture, mileage, condition, and trim level are considered. The car’s history, including accidents, repairs, and routine maintenance, are also influential.

Free online tools like Kelley Blue Book, Edmunds, and AutoTrader can assist in getting an idea of your car’s resale value. However, this should be viewed as a rough estimate rather than a precise valuation. The actual assessment will be done by the title loan company’s experts.

Evaluating Equity in the Vehicle

Equity refers to the amount of your car’s value that you truly ‘own.’ If you’re making repayments on the vehicle, you compute your equity by subtracting the remaining balance from the car’s current market value.

For instance, if your vehicle is valued at $12,000 but you still owe $5,000, the equity in your vehicle is $7,000. It underlines the portion of your car that you’ve paid off versus the part you’re still paying for.

What Happens When There Is No Equity or Negative Equity?

No equity implies that your car’s worth is equal to the remaining balance on your loan. Negative equity or being ‘underwater’ on your loan refers to owing more on the car than its market value.

If you’re in a situation of no equity or negative equity, obtaining a title loan could be challenging. Lenders typically want the borrower to have equity in the car to mitigate their risk.

Equity Value in Title Loan Borrowing

Equity is pivotal in title loan borrowing. It determines if you qualify for the loan and influences the maximum sum you can borrow.

Lenders generally let you borrow up to a certain percentage of your car’s equity, meaning the higher the equity, the larger the loan you can secure.  

In conclusion, while it is possible to get a title loan on a car not fully paid off, the critical factor is the equity you have in the vehicle. Understanding how to compute your car’s resale value and your equity can help you navigate through the title loan application process more effectively.

Title Loans for Cars Not Paid Off

How to Calculate Your Car’s Resale Value

Because your car is used as collateral to secure a title loan, the title loan company must know how much it is worth when determining your eligibility.

The title loan company will consider a number of factors when calculating your car’s resale value, including its make, model, year, mileage, condition, and trim level.

There are a number of free online tools you can use to get a better idea of how much your car is worth. One of these tools is Kelley Blue Book. There are several ways to use this tool. You can enter your vehicle’s VIN to automatically pull up its information and calculate its value. If you don’t have the VIN available, you will need to enter some basic information about your car, including its make, model, year, and mileage, to find out how much it is worth.

What Other Factors Will Impact Your Eligibility for a Title Loan?

Your vehicle’s value and your equity in your vehicle are two of the main factors that will impact your eligibility for a title loan. However, other factors could also affect your eligibility.

For example, you must have a reliable source of income to qualify for a title loan. You must also be willing to consent to a credit check. If you don’t meet these eligibility requirements, you may not qualify for a title loan.

Talk to your lender to learn more about their eligibility requirements and if you qualify for a title loan.

What Documents Will You Need to Submit to Apply for a Title Loan

If you are planning on applying for a title loan, be prepared to submit the following documents to your lender:

  • Your driver’s license or another government-issued ID
  • The title to your vehicle
  • Proof of income such as recent pay stubs, tax returns, or bank statements
  • Proof of residence such as your driver’s license, utility bills, or lease agreement
  • Proof of auto insurance

Your title loan application cannot be processed until you submit these documents. The sooner you submit the required documentation, the sooner you can collect the cash you need to make ends meet.

Will You Need to Bring Your Vehicle in for an Inspection to Get a Title Loan?

Remember, the title loan company will need to calculate the value of your vehicle during the application process. This valuation process can vary depending on the title loan company.

Some title loan companies ask borrowers to bring their vehicle in for an inspection. However, others offer more convenient alternatives. For example, a title loan company may agree to send someone to your home or workplace to inspect your vehicle. This ensures you don’t have to travel to the title loan company’s office to complete the inspection, which makes the process more convenient.

There are also title loan companies that allow borrowers to submit pictures of their vehicle instead of getting it inspected.

Make sure you understand what your options are when it comes to getting your car valued during the title loan application process.

How to Find Out If You Qualify for a Title Loan With Your Financed Vehicle

Eligibility for a title loan is decided on a case-by-case basis. If you are still making payments on your vehicle, it only takes a few minutes to find out if you can use it as collateral for a title loan. Follow these steps to request a free title loan quote from LoanCenter:

  • Contact our loan specialists. You can call 1-866-553-3840 to speak to a loan specialist directly. Or you can submit your information using the form on our website and wait for a loan specialist to get in touch with you.
  • Answer a few questions. Your loan specialist will need some basic information about your vehicle in order to prepare your free quote. You may need to tell your loan specialist your vehicle’s make, model, year, mileage, and condition.
  • Review your quote. Your loan specialist will prepare a free quote based on the information you provide. This quote will tell you if you are approved for a title loan, and if so, how much you can borrow and at what interest rate.

That’s all it takes to find out if you qualify for a title loan using your financed vehicle as collateral. If you’re satisfied with the terms of the quote, you simply need to sign and submit the required documentation to complete your application and collect your cash. Contact us today to get started.