Whether it be via credit cards or student loans, Americans carry thousands of dollars worth of debt to maintain their lifestyles.
Unfortunately, without good credit, borrowing money can be difficult. Thanks to car title loans though, even credit-challenged people can get their hands on the cash they need.
While most people know that they can borrow money against their car’s title, some wonder if it’s possible to get a title loan with no title in-hand. We’ll be exploring the answer to that question over the next three sections which we hope will ultimately give you the information you need.
Before we dive into your car title loan with no title options, it’s important to understand what a car title is. A car title is a physical deed that states its holder is the legal owner of a vehicle.
If you’re making payments on your car, chances are, your lender has your car’s title and will relinquish it to you only when you’ve paid off your loan.
Getting a car title loan with no title in-hand is not possible, in most cases, unless you’re able to rectify not possessing your title.
For example, if you don’t have your title because you lost it, you could go to the DMV and get it replaced. You could also pay off your car loan, have your lender send you your title and then borrow against its value.
The takeaway here is that most traditional car title loans will want to hold your title as collateral to ensure you pay back your loan. Without a car title to give your lender, they won’t have any collateral to carry which will dissuade most from lending to you.
If you don’t have a car title and consequently, car title loans don’t seem like the right type of loan for you, consider exploring auto equity loans. Auto equity loans allow you to borrow against the equity that you own in your vehicle.
That equity amount doesn’t need to be your car’s full value and consequently, you don’t need to have a car title to get it.
Auto equity loans will likely require that you have above-average credit since lenders are taking on more risk lending against your equity than they would if they were lending against your vehicle’s lien-free title.
Car title loans can help get money into the hands of people with poor credit. That being said, with car title loan requirements and sometimes questionable terms, they may not be the right kind of loan for you.
Explore what your title and auto equity loan options are and understand all of their implications before taking one on. With due diligence, you’ll give yourself the best chance of acquiring a loan product that suits your needs.
Are you looking to learn more about title loan with no title implications? If you are, consider checking out more of our content on the subject and related topics in our blog!
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