Can You Get a Title Loan with a Lien?
You know, you’re always told to expect the unexpected, but the unexpected by nature is, well, unexpected. And in the world of finances, this seems to be particularly true. Here’s the thing about the unexpected, especially when it comes to finances: You can be working to save up for an emergency fund so that you can deal with the unexpected and still get hit by the unexpected. When that happens, you’re short money even if you were “expecting” emergencies to strike. The question then remains, how do you deal with the unexpected until you do have a cash reserve? For many people, applying for loans has been the answer. However, not everyone can get one, which leaves this person back at square one. Or does it? Not necessarily. For these people, there’s another type of remedy. Read on to find out what this is.
What is a Title Loan?
First things first- title loans are loans that require the title to a truck, car, motorhome, or motorcycle to get. They are a collateral loan, and most of the time, the borrower does not need good credit to get one. Therefore, they have been the go-to loan for people whose credit has taken a beating. This type of loan is even good for people who have filed for bankruptcy.
Can You Get a Title Loan with a Lien on the Vehicle?
In a word, no. Getting a title loan is contingent upon the borrower having a car with a title that is free of liens of any kind.
What Does It Mean to Have A Free And Clear Title Then?
Basically, it’s a title with no liens on it or more plainly, this is a car that can be offered up as collateral, because no other entities have first dibs at it. That’s what a lien is.
For example, if you own a car and you are buying it on time with a help from a loan that you got from the bank, that car’s title has a lien on it. In the event that you couldn’t make your car payments, the bank could take the car back, because it has a lien on the title. The lender could then resell the car and make back the money it loaned to the borrower, but didn’t get due to missed payments.
There are other kinds of liens, and all operate under a similar principle. Your home’s mortgage is a lien. Property taxes can also be liens in some cases. There are many types of liens.
Can I Get a Title Loan if I’m Still Paying Off My Car?
Again, the answer is, no. Going back to the paragraph prior, the car’s title still has a lien on it with the bank until it’s paid in full. In a sense, the first title loans on these vehicles are the loans that the bank gave the car’s owner in order to buy it. However, if you want to use the car’s title to get cash for you, that won’t be an option due to the lien still on the title.
So What Can I Do Instead? Anything…?
Fortunately, yes! There’s another type of loan called a registration loan. To qualify for registration loans, you need a car registered in your name. This type of loan is closer to a payday loan, except that it requires the registration of a car. They’re pretty simple to get, and they’re a good option for people who just need a short-term loan. Most don’t require good credit, either.
With registration loans you get cash for the registration and money is pulled from your account according to your payback date, (which is determined at the time you borrow). You can also come into the store and pay on your loan as well.
When you apply, you’ll want to bring in your vehicle’s info plus the vehicle in question, usually. Additionally, we’ll need to know about your residency. Finally, be prepared to show us your license and social security card.
How to Get a Title Loan without a Clear Title
Registration loans offer you a viable option if your emergency fund isn’t quite built up yet, and your car’s title has a lien on it. A registration loan opens up your financial options during those times when you’re in a pinch.