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



People contact us all the time looking for information on title loans online. Sometimes, we can’t help but notice that some of them are very embarrassed at their financial situation. They are looking for money and want to use the collateral in their vehicle. A common question we get from applicants is if they can apply with a vehicle that’s not yet paid off. In some cases, you can be approved if there’s a small amount of money still owed, but often you need to have the actual pink slip. Most blame themselves for not making better decisions which is the primary cause of their shortage of money. Start with the last recession when people had to face financial distress. Some had to deal with all kinds of problems that only money could resolve. Some managed to stay afloat until recently and are now finding that their personal recovery has been much slower than they expected.


Can You Get A Title Loan With A Car That’s Not Paid Off

We understand that anyone can run into hard financial times. Now, the consequences have caught up with them – sort of like the dog that caught its tail. Like that dog, they wonder what they can do next. Having sold everything worth selling and their credit scores are very low. All they have left is their vehicle and no bank or finance companies will work with them. Look for a company that doesn't charge a prepayment penalty if you want to pay early.  That is where the prospect of a secured loan becomes a good choice compared to the alternative methods of getting cash.

The first question that many people ask when they first call is, “does my car have to be paid off in order for me to qualify for a car title loan?” Generally, the answer is yes. But, that shouldn’t make you give up all hope. There are some exceptions and if you contact us, we may be able to help you anyway. The reason that we generally need a borrower to have a lien free automobile title is two-fold.

First, we are in the business of helping people who need financial assistance now. If the car loan has a zero balance and no one has a lien on your car title, we can help you find legitimate online title loan companies. These lenders will get you the money you need within hours of the approval of your application. That means you can get going in the right direction before you feel like you’re drowning in a swamp of money woes. Second, when your vehicle is unattached to an auto loan, you have more equity available in your vehicle. That means that you could get enough money with a title loan to catch up with whatever payments you need.


Exceptions on title loans for cars not paid off


Sometimes, we can help people who owe money on their current vehicle and are interested in title loans for cars that are not completely paid off. Does it always make sense to pay off my vehicle in full before i get a secured loan?Here are some circumstances where exceptions might exist:

  • If you have a newer model vehicle and only owe three or four more payments, you probably have enough equity in the vehicle to get approved with no income verification title loans. This may encourage title loan companies to make a lending exception for you.
  • If you took out an equity loan with another company and still owe a few payments before it’s paid in full, you may still be able to get a loan with us.
  • If you have an auto title loan with us and need funds added to your current loan, we may make an exception for you, especially if you have paid on time.


Another situation that may slow things down could be that the vehicle title is in your name and the name of a family member. What if this person is no longer available to sign the contract? This can happen with the spouses of military personnel who are serving overseas or in a war zone. It can also occur if the other party has recently passed away. Other similar situations with car title loans are rare, but they do occur. For instance, if you got divorced and your former spouse has yet to sign off the car title and turn it over. Most companies that provide an online title loan will discuss the entire situation with you before there’s a final decision. If they try to rush you or don’t want to explain the process then you should run the other way.


There are plenty of decent and legitimate firms out there that offer car title loans with a vehicle that’s not paid off. A reputable company should go out of its way to find a solution that will work for you. They should allow you to pay off the title loan early with extra payments and no prepayment penalty. Contact them through their website to get started on an online vehicle title loan!


Apply for fast funding from a title loan even if you have a car that's not paid off.