A car title loan usually requires that one owns a car free and clear before applying but it also offers various options depending on what the lender is willing to offer and what suits the borrower.
There are borrowers who lookout to get title loans even though they are still owing on the car. we will consider the options available for borrowers in this situation.
Can I get A Car Title Loan While Still Owing on my Car?
It is possible you just bought a car and haven’t completed payment for the car but in the process, you had emergency expenses to cater for, this is not uncommon.
If you own a car in your name but owe on the car you can still get the loan but what of when you need a title loan for a car not completely paid off?
Do not overthink your financial situation, it is still possible to get a car title loan for a car you have not completely paid for.
The good news is that it is still possible to get a car title loan with a car that is not yet paid off. For you to get a title loan with a car that is unpaid the car has to have more than enough equity and also have a solid source of income.
You can check for the equity in your unpaid car by determining its present resale value and how much you owe on it.
Subtract how much you owe from the current resale value of your car and that will give you the equity in your car. you can use an online loan calculator to know the equity in your car.
To use the online title loan calculator, you will need to input the make, model, mileage, and year of your car.
What Documents DO I Need to Get a Title Loan While Still Paying for the Car?
You will need to provide the following documents if you want to get a loan using a car that you are still paying for;
- Car Title: You will need the title of the car in your name. if you don’t have the title in your name yet, your loan agent can help you with the change of ownership process.
- Proof of Address: You need to provide proof of address to show that your car is registered in the same state you reside. You can provide a bank statement, utility bill, or insurance statement as proof of address.
- Proof of Income: You will need to show your lender that you can repay the loan. Hence, you will need to provide proof of income such as a pay slip or you can provide other means of earning a livelihood such as from personal businesses or investments.
- Proof of Identification: You will need to provide a government ID such as a passport or driver’s license to serve as a means of ID.
- References: You will be required to provide either professional or personal references.
Usually, there are no credit checks when you apply for this type of loan and the amount of loan you can get depends on the equity you have left in the car.
Contact us, we can help you to get the right loan for you. We will be your title loan broker.
