Learn About How You Can Get a Title Loan When the Car is Not Paid Off!
If you have found yourself in a situation where you need quick funding, there are many loan options to choose from. However, out of all the choices available to select, a title loan may be the best alternative financial resource for you.
Borrowers would only need to use their vehicle title as collateral to retrieve the funds they need for an emergency! That means you could potentially access the equity in your car and turn it into cash! But is it possible to obtain a car title loan when you haven’t paid off your car?
Although people typically have their vehicles paid off before they get 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 to Get a Car Title Loan When the Car is Not Paid Off
Whether you paid off your car or not isn’t an essential factor in qualifying for a title loan. In fact, title loan lenders will focus on two main requirements whenever you apply for cash:
- The Positive Equity in Your Vehicle
- Your Ability to Repay the Title Loan Each Month
When you use the title to your car as collateral, a lender uses the equity behind it to determine your approval. In addition to having the right amount of equity, you must be able to prove your ability to repay a loan.
You don’t need a 9-5 job 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 getting 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 an auto title on a financed car, the remaining total you owe on the vehicle will apply to the title loan’s principal balance. But don’t worry! Your car may have a good amount of equity to help cover your necessary expenses.
It’s okay if you do not know your car’s current value! People often calculate a vehicle’s equity by subtracting the amount they owe from the market value of their car.
While that may work for some, others might opt for an easier choice. You could find an estimate on your vehicle’s equity by using different appraisal tools like Kelley Blue Book.
Once you find an estimate on your car’s value, a title loan lender can help you determine if it qualifies for emergency cash!
Do Borrowers Need Documents to Receive Approval for a Title Loan on a Financed Car?
During the inquiry process, a lender will ask you to submit a few documents to verify your information and vehicle ownership.
Some traditional lenders will require you to send these documents via mail or in person, while others can let you submit them online! Whichever option you choose, you can anticipate turning in the following paperwork:
- The Title to Your Vehicle
- Proof of Income
- Proof of Address
- Proof of Government-Issued Identification
Keep in mind that some title loan lenders might ask to conduct a car inspection.
While most lenders prefer doing it in person, others might allow you to submit a few pictures of your vehicle online instead. Ask your lender if this is a requirement for a title loan.
Where Can I Apply for an Auto Title Loan When the Car is Not Paid Off?
Now that you know that you could get a car title loan when the car is not paid off, it’s time to find the best way to acquire one. Although there are many options available, some might not benefit you.
Yet, if you inquire about a title loan with ChoiceCash, you could get through a flexible approval process to get your money in no time!
You would only have to follow these three steps to qualify:
- Submit a Loan Inquiry Online or Over the Phone at 855-914-2945
- Send Required Documents
- Collect Your Cash!
Contact a ChoiceCash title loan agent for more details.
But no matter which way you opt to get a title loan, it’s important to educate yourself about them before getting one. Once you feel confident, you may be ready to get the money you need for an unexpected bill or expense!