Before you head to a title loan location to apply for a loan, it’s important to make sure that you have all the required documents. Fortunately, title loans require very little in that regard, as you only need your government-issued ID, your car title and your car to obtain a loan. However, if you’re missing […]
Before you head to a title loan location to apply for a loan, it’s important to make sure that you have all the required documents. Fortunately, title loans require very little in that regard, as you only need your government-issued ID, your car title and your car to obtain a loan.
However, if you’re missing the car title, you may wonder if it’s possible to get a title loan without title, or if there are no vehicle inspection title loans available. Here’s all that you need to know about how flexible those title loan requirements are.
Can You Get a Title Loan Without Title?
Let’s first answer the question about getting a title loan without title. Unfortunately, that answer is almost always going to be “no.” Every title loan company will have its own policies and procedures, but it’s unlikely that they will bend on getting your car title, seeing your ID or checking out your car. Here’s why:
The lender needs to keep your car title so that it has some form of collateral while you pay back the loan. You get to keep your car, but if the lender didn’t keep your title, they would essentially be giving you money without any way to protect themselves. Another potential issue is that if the lender doesn’t see your car title, how do they know it’s even your car? You could drive up in anybody’s car, say it’s yours, and then get a title loan.
Federal law requires anyone who gets a title loan to be 18 years of age or older. If the lender didn’t check your ID, they risk breaking that law, which could have severe legal consequences.
The lender needs to see your car to make sure that it’s in your possession and to see what type of condition it’s in. The current market value of the car determines how much you can borrow through a title loan. The lender can’t know how much your car is worth without seeing it.
What Can You Do If You Don’t Have Your Car Title?
Wanting to apply for a title loan without having a car title is a more common situation than you might think. How you can handle it depends on why you don’t have the car title. These tend to be the two most common reasons:
- The car title is lost or stolen
- Another person has the car title
If the car title is lost or stolen, the good news is that you can simply get a new one through your state’s Department of Motor Vehicles (DMV). Although the procedure can vary a bit from state to state, here is how it will usually work:
- Go to your state’s DMV website.
- Find the section for ordering a replacement car title.
- Proceed through ordering a replacement, entering the required information along the way.
- Pay any fees involved, which are usually just a few dollars.
This is the most convenient way to order a replacement car title, but you can usually also either call a DMV location or visit one in your area to order your replacement, as well. Keep in mind that the fee amounts and processing time frames often vary depending on the method you choose. In some cases, you can pay a bit more to expedite delivery of the car title.
What if another person has the car title? If that person is the owner listed on the car title or a lienholder on it, then you’ll need to convince them to transfer the title to you. This may require you to pay them, if money is still owed on the car. You can’t get a title loan if someone else owns the car, since then the lender wouldn’t be able to legally repossess the car if necessary. Some title loan companies will offer to buy out the previous lienholder and take that money out of your title loan, which could be an option depending on your situation.
Sort Out Any Title Issues Before Looking for a Title Loan
Your best bet is to get the title to the car and make sure it’s in your name before you start looking for title loans. You’ll have an extremely difficult time finding a title loan company that’s willing to issue you a loan without a car title, and in some states, that would even be illegal.
This is also one of the reasons why it’s good to resolve any car title issues right away. Title loans are very convenient because of how quickly you can get them, but that convenience goes away if you’re stuck waiting for a replacement title in the mail before you can apply for your loan. It’s easy to order a replacement title, it costs you hardly any money and you’re going to need the title anyway if you ever get pulled over. Get that squared away and you can always apply for a title loan right away when you need one.
Refinancing a title loan is an option
If you own a car that has a salvage title, you may be wondering, “can you get a title loan on a salvage title?” It is possible, but there are some drawbacks.
When you have a salvage title, it means your vehicle has been been deemed a total loss at some point. Many people think of a totaled car as one that has been smashed beyond recognition in an accident, but salvage titles are issued for a number of reasons, including water damage.
Cars with salvage titles, even when they have been restored to pristine condition, are considered less valuable. If you seek a title loan on a salvage title, you most likely will be able to borrow less and will face higher interest rates than if the car did not have a salvage title.
If you do get a title loan on a salvaged vehicle, one option you have is to do a title loan refinance. This could be done by getting another title loan with better terms or by refinancing into a different type of loan. The key is to shop around and evaluate all of your options.
