Do I Need To Pay Off My Vehicle To Qualify For A Car Title Loan?

I just read that the current jobless claims smashed records with over 6.6 million claims last week. The Coronavirus is quite literally putting the world economy on hold and people are losing their jobs left and right. Unfortunately, there are so many people who live paycheck to paycheck, that I’m concerned how they’re going to get by. There are going to be so many people scrambling to pay their bills and they’re going to be trying to find alternative ways to pay them. They’ll be using the credit cards, trying to qualify for payday loans, or they could possibly be looking to use their vehicle as collateral to get a title loan.

If you’re reading this article you’re probably in a situation where you’re considering getting an auto title loan. You could be feeling embarrassed that you can’t qualify for a traditional loan because your credit history is bad. I understand your situation and the feelings of embarrassment.

When I was growing up my father left my family and put our family in a tough financial situation. I remember being on food stamps and the embarrassment of accepting home cooked meals from our church was overwhelming. As a kid, if I was embarrassed, how did my mom feel? I just remember knowing that I never wanted to be in that situation when I was an adult. It shaped me into the person I am today. I am now quite savvy with my finances and it is my intention to help educate people in the matter of these types of loans before they take the plunge. If I can help just one person straighten out their financial future, then I feel like I’ve done my job.

I get the following question a lot. “Do I need to pay off my vehicle to qualify for a car title loan?” For the most part, the answer is ‘yes’. However, there are a few exceptions, so don’t despair:

1. If you have a vehicle and you only have three or four payments left on your loan, then you may have enough equity in your car that you may qualify for a title loan.
2. Let’s say you have a title loan lien on your vehicle with a prior lender and owe just a few payments, you may qualify for loan.
3. If you currently have an auto title loan with an existing lender and you’ve been timely with your payments, then you may qualify for additional funds.

If you are free and clear of your automobile is in your name, then you’re in a good position to qualify for one of these loans. If that’s the case you can look at our directory to find a car title loan company. Of course they do look for some additional qualifications of which follows:

1. Proof of income or job
2. Proof of bank details.

There are always different circumstances that can slow the loan approval process. For example, if the car is in the name of your spouse. But what happens if your spouse has past away or there was a recent divorce? These are situations in which a legitimate online car lending company will work with you. If they try and pressure you, you need to look for another company to work with. But in all honesty, there are good companies out there that are willing to help you out.

In this crazy time, I hope you find yourself safe. Try not to panic because there are better days ahead of us all. Please take the time to read our other articles to learn about vehicle title lenders and how they operate.