Can You Get Title Loans With Liens?
If you’re stuck in a tough financial situation and need to borrow against the value of your car, a title loan can be a lifeline. But what if you already have a lien on your car’s title? The answer is that it is possible to get title loans with liens. However, there is a little bit of nuance to wade through before you submit a loan inquiry.5
Before you can understand the application process for a car title loan with a lien on your title, it’s important to know more about how liens work. Then, see what your options are if you need fast funds and have a lien on your car’s title.5
With Max Cash Title Loans, understanding title loans with liens can be made simple. Give one of our agents a call at 855-561-5626!5
Understanding Liens and Collateral
The terms “lien” and “collateral” matter when searching for title loans with liens. A car title loan is secured by collateral, which is the title to a qualifying car, truck, or SUV.
A vehicle must have a sufficient amount of value in order for an individual to borrow against its available equity. Generally, a borrower can access anywhere from 25%-50% of their vehicle’s value through a secured loan like a title loan.1
The collateral is used to secure the debt and guarantee the loan, and a title lender will place a lien on your title after the loan is funded. A lien is the lender’s right to your asset during the repayment process. A lien will be removed after all the payments are made, so it is not permanent in that sense. A borrower can continue to drive their vehicle during the repayment process- even with a lien!5
Is it Possible to Get Second Lien Title Loans Near Me?
While it is possible to get second lien title loans, the truth behind that statement is that many lenders are not willing to work with you. In fact, many lenders do not offer second lien title loans. This is because they require permission from the original lienholder to add a new lien. The hassles involved with 2nd lien title loans online can be a lot for most lenders! Additionally, they are not available in every state because there are laws that do not allow multiple liens to exist on a singular car title. Instead of searching for a second lien title loan, it may be more advantageous to look for title loans on financed cars, or refinancing your current title loan with a lien.5
If you are still financing your car, your vehicle must have enough positive equity to qualify as collateral for the loan. So, you must be fairly close to paying it off in most cases.5
An example of getting a title loan with a lien from an auto lender looks like this:
Let’s say you have $1,000 left on your vehicle purchase loan. If you are approved for a title loan for $3,000, then $1,000 of your title loan will go towards paying off the lien. The lender will then become the new lienholder on your title, and you get $2,000 to use for whatever you need.1 5
With Max Cash® Title Loans, finding title loans with liens still on the car is possible! When you’re ready to get started, fill out a quick form online! Our loan agents will get in touch with you and walk you through the next steps of the title loan process!5
Do I Need a Clear Title to Get an Auto Title Loan?
Typically, yes, you do need a clear title to get an auto title loan, but there are exceptions.5 If you do not have a clear title in your name, that means that a title lender or auto lender has already placed a lien on it, so you are not the true owner of the vehicle. While a lien is in place, your vehicle cannot be sold or transferred to a new buyer.
It is possible to get a title loan with a lien, whether the lien is placed by a title lender or an auto lender. But, the process changes depending on what type of loan you have against your car. If you are approved for a title loan with a lien still on the vehicle from an auto lender, the amount you are approved for will first be used to pay off the current auto on the vehicle. Once that amount has been allocated for paying off the loan, you will get the rest of the money to use at your discretion. 1 5
Can You Get Title Loans With Liens and Bad Credit?
Having bad credit can make it difficult to get approved for emergency funding. Unlike traditional loans, car title loans are more flexible when it comes to bad credit! This is due to the fact that your car will be used to secure the loan. Because collateral is used to guarantee the funding, your credit history may not be the focal point of your application. However, keep in mind that some lenders will still check your credit score during your loan request. But as long as you can provide a few documents and meet the requirements, you can get a title loan with a lien and a bad credit score!5
Are you refinancing your current title loan or applying for a title loan with a financed car? You may have options. Having bad credit won’t always hold you back!5
Do I Have Refinancing Options for Auto Title Loans with Liens Near Me?
If you are unhappy with your current title loan terms, one of your options is to refinance online with Max Cash Title Loans! Title loan refinancing involves getting a new title loan to pay off your existing one. By doing so, you can hopefully obtain better loan terms.4 5
This includes your interest rate, along with the amount of time you have to repay the loan. Getting a new title loan through refinancing could mean more time to pay. For some borrowers, this extended term is necessary to get their finances back on track!
Where Can I Refinance My Car Title Loan With a Lien?
Did you know that you can start your inquiry process online? Whether you need a title loan on a financed car or refinancing, Max Cash Title Loans is here to discuss your options. Call one of our title loan agents today! Learn more about applying for title loans with liens and see what we can help you with. 2 5