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Title Loan Options on a Finance Car
The short answer to this question is yes! Getting approved for a title loan on a financed vehicle is possible. However, the current loan may affect how much funding an approved borrower receives and the overall financing terms. Just because you continue making payments on your vehicle loan does not disqualify you from getting title loan approval!
Perhaps an appliance broke down in your house that needs immediate repairs, or maybe you need to travel somewhere unexpectedly. Whatever the reason may be, most things in life cost money. If you don’t have the disposable income to pay for unexpected expenses, you may feel stressed and frustrated.
Consider applying for a title loan if you need a short-term loan solution! Car title loans are perfect for people with bad credit or no savings because they use a borrower’s vehicle as collateral for funding. Learn how to get a title loan on an already financed car today!
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How Does a Title Loan Work with a Financed Vehicle?
Car title loans work by using a borrower’s car as collateral for funding. The lenders will put a lien on your vehicle title during the repayment period and take it off once the money is paid back in full. The great thing about a title loan is that people with bad credit scores may be approved for funding! That’s because lenders will consider your financial history during the approval process, but it is not the main focus.
Instead, title loan lenders care more about the value in your vehicle and if you have the income to repay the money you borrowed. As long as you have enough positive equity in your car, it may be easier than you think to obtain approval if you meet the other criteria.
You can calculate car equity by taking the market value of the car and subtracting how much you still owe on the vehicle. If your car is in good condition and it’s mostly paid off, you might have a high amount of equity! Qualified borrowers can access anywhere between 25%-50% of their car’s equity.
What Documents Do I Need for a Title Loan on a Financed Car?
The required documents for a title loan on a financed car are the same for any title loan. You will need to show:
- Government Issued Photo I.D. or Driver’s License
- Proof of Residency
- Proof of Steady Income
- Recent Photos of your Vehicle
- Some References of Your Character
You must prove your identity and age by showing a government-issued photo I.D. or a state-issued driver’s license. Qualified borrowers must be at least 18 years of age to inquire about a title loan! Additionally, you will need to prove your residence by showing an official piece of mail, like a utility bill or a bank statement.
Proving a steady income is important because lenders want to know that you can repay the money. You don’t need to work a 9-5 job to qualify for a title loan, however. If you earn income another way, simply provide proof of alternative income instead.
Lenders want to see recent photos of your vehicle because they want to know the car’s current condition. This can determine how much funding you may receive! Finally, you may be asked to provide a few references during your inquiry process. If you have a bad credit score or a rocky financial situation, lenders may want testimonials from people in your life that you are responsible enough to pay back a loan.
Inquire About a Title Loan for a Financed Car Today!
Just because your car is already financed doesn’t mean you can’t apply for title loan funding. The amount of funding you may get depends on how much value is in your car and how much you still owe on it. Click here to learn more about title loans serviced by LoanMart today.
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