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Is it Possible to Get a Title Loan While Still Making Payments?
Car title loans are a financial resource that could allow borrowers from different kinds of credit scores to use their vehicle titles as collateral for funds. However, the car you intend to use as collateral must have enough available equity. Equity is simply the difference between the market value of the vehicle and what you currently owe on it.
But what if you’re still financing your car? You may wonder – “Can I get a title loan while still making payments?” The short answer is yes! Your car could still qualify for an auto title loan even if you’re paying it off.
How Can I Get a Car Title Loan While Still Making Payments?
As you may know, title loans are secured loans that could allow you to use a vehicle title instead of just your credit history to secure loan approval. Suppose you’re struggling with an unexpected bill or expense. In that case, a car title loan could be a good solution!
Even if you’re still making car payments, it could qualify as collateral for a title loan. Auto title loan lenders base your eligibility on the equity in your vehicle, not the number of payments left on it. You could still apply for title loan funding even if you’re financing your car!
To qualify for a car title loan, you will need the following:
- A Qualifying Vehicle
- The Title of Your Car
- The Ability to Responsibly Pay Off Title Loans
If you are like most borrowers, you may not know what your vehicle’s current equity is. The market changes a lot, but tools like Kelley Blue Book can help you find a rough estimate! After you obtain it, you can determine if your car’s equity can qualify you for a title loan.
Does the Vehicle Title Need to Be in My Name When I Get an Auto Title Loan?
Although you can qualify for an auto title loan while still making car payments, there are some stipulations to consider. For example, a borrower must have a vehicle title in their name to apply for a car title loan.
Until the title is in your name, you do not legally own the car; therefore, you cannot use it as collateral for a title loan! Is there a way to change that? Of course! Allow your car title loan lender to pay off the remainder of your auto loan. You must fill out a few forms to do so, but afterward, the remaining balance of your auto loan can be added to your title loan. Then, your title can be in the right shape to apply for a loan!
Can I Get a Title Loan with a Bad Credit Score While Still Making Payments?
Borrowers who worry about not qualifying for a title loan because of a financed car could also think that a lower credit score would disrupt their eligibility. However, people with bad credit could still qualify for the cash they need for an emergency! While many loan options require an applicant to have a good credit history, auto title loans could be flexible despite your credit score. Car title loans rely heavily on collateral during the inquiry process, which can help you in this situation.
Be aware that a title loan lender will verify your credit history, but don’t worry! As long as you have the right collateral and income to pay off loans, you could still qualify for funding! Although a credit check will take off some points from your credit score, it could improve with time and effort on your end.
How Much Cash Can I Receive Through a Car Title Loan While Still Making Car Installments?
The amount of funding you can receive through a car title loan will depend almost entirely on the value of your vehicle and your income. The more value your car has, the more equity you may be able to access during the approval process.
You could qualify for emergency cash if your vehicle has enough positive equity! Depending on your title loan provider, you could receive funding as soon as the next business day! For example, borrowers that inquire about title loans from LoanMart could receive cash in no time!
Speak with your lender or provider for details on money delivery and the loan amount you could obtain through a title loan.
No matter which title loan provider you choose, you must educate yourself about them before acquiring one. As soon as you feel confident, you may be ready to get the funds you need for an unexpected expense!