Title loans have quite a few valuable benefits that make them a convenient solution for those dealing with financial issues. Borrowers can get title loans with no proof of income, with no credit check and with no waiting period while the application processes. Other lender, banks in particular, can make borrowers make days or even […]
Title loans have quite a few valuable benefits that make them a convenient solution for those dealing with financial issues. Borrowers can get title loans with no proof of income, with no credit check and with no waiting period while the application processes. Other lender, banks in particular, can make borrowers make days or even weeks before deciding to approve or deny a loan application. With total loans, applications typically process the same day, and you could have your loan money within the hour.
The one challenge you may experience with getting a title loan is that it requires you to have a car with a lien-free title in your name. If you’re still paying off the car, you won’t qualify. The good news is that many lenders can offer you a second lien title loan.
How a Second Lien Title Loan Can Work
When it comes to getting a title loan with a lien holder already on the title, there are a couple different options available, and each option will work a bit differently.
The title loan company can take over the lien on your car title by paying off whatever you owe to the current lien holder. The most common way for the title loan company to do this is by taking the lien balance out of your title loan amount. For example, let’s say your car lien has $3,000 left on it and the title loan company approves you for a $5,000 title loan. The lender would pay $3,000 of that to the lien holder so that it can become the lien holder, and then give you the remaining $2,000.
Another option is that the lender will allow the current lien holder to remain in place, and only pay them if you default on the title loan. Of course, the title loan company will need to take into account how much it would need to pay the lien holder should you default and subtract that from your loan amount. You’ll still get the same amount of money, and the only difference will be if the title loan company becomes the lien holder or not.
The process works the same regardless of what type of company is the lien holder. A title loan company could pay off the bank that helped you finance the car, or even another title loan company.
How to Find a Second Lien Title Loan
Although second lien title loans are fairly common, not every title loan company will offer them. It can be difficult to find title loan companies in your area online anyway, because running a search will often pull up listings for lenders that aren’t anywhere near where you live.
The quickest, most convenient option is to go through our site to apply for online title loans. We have a database of title loan companies available and can connect you to the right lender.
You can complete the online application process by going through the following steps:
- Click the Apply link in the header menu.
- Fill out your vehicle information, and then click Next.
- Fill out your basic contact information, and then submit the application.
What information will you need to enter? For your vehicle, we’ll need:
- Approximate Mileage
For your contact information, we’ll need:
- Your full name
- Your cell phone number
- Your email address
- Your ZIP code
After you submit your application, we tell one of our friendly loan reps to follow up with you as soon as possible. When that loan rep calls you, make sure to mention that you’re looking for a second lien title loan. Not only can the loan rep find a title loan company to issue your loan, they can also provide an estimate on how much cash you could borrow.
Determining if You Should Get a Second Lien Title Loan
Anytime you’re thinking of getting a loan, you should think carefully about it to make sure that it’s the right decision.
With a title loan, the first thing to consider is what you need the loan for and how soon you’ll be able to pay it back. Title loans are short-term loans, and if you need something fast and convenient, they’re the perfect option. On the other hand, they usually aren’t ideal if you need a long-term loan.
You also need to look at the amount of equity you currently have in your vehicle and how much you have left to pay off to the lien holder. The current market value of your vehicle determines how much the title loan company will lend you. When there’s also a lien to consider, that means you’ll end up with a title loan for a lower value.
Taking out a second loan on a piece of property may seem risky initially, but remember that people do it all the time when they have equity in their homes. There’s no reason to avoid doing the same with your vehicle. If you have the equity in a car, don’t let a lien stop you from getting a title loan.
Loan options if you are out of work
Because trying to get a title loan without a job can be difficult, you may want to look at other options. However, that’s going to be difficult with no income to show for repayment.
You can try to get a loan through a pawn shop if you have a valuable piece of property, such as expensive jewelry. Another option is to take out an advance on a credit card if you have one, but that can be very expensive.
You also can get loans against financial instruments such as a 401(k) plan or life insurance policy if you have them. The good thing about these kinds of loans is that you essentially pay back yourself.
If you are out of work, there aren’t a lot of loan options out there, so a title loan may be your best bet.