Do I Get to Keep Driving My Car if I Have a Title Loan On It?

Is It Possible to Keep Driving My Car if I Have a Title Loan On It?

When you get an auto title loan in your area, it’s understandable to wonder, “Do I get to keep driving my car if I have a title loan on it?” After all, title loans work by allowing you to use your car title as collateral to secure funding. It can be worrisome if your vehicle serves as your primary source of transportation; you wouldn’t want to waste money on taxis or arrange carpools if you have daily commutes! Fortunately, unlike some title pawn options, title lenders or providers will only require your car’s title, not the vehicle itself.

However, you must be a responsible borrower to maintain that privilege. If you start to miss payments and fail to repay a title loan in full, you could lose your car to repossession. But most title loan lenders prefer to avoid that consequence since it can be expensive and a nuisance to arrange. Yet, that doesn’t mean that you should take the risk of not completing your title loan installments on time. If you have any issues during the repayment process, you can ask a title lender to see if they can assist you.

Does an auto title loan sound like the right option for you? If it does, you should read more about getting title loans before applying. Find out if you can qualify for a title loan today!

How Do I Qualify for a Car Title Loan?

As you may have read previously, an auto title loan is a secured loan that uses the borrower’s vehicle title as collateral. Auto title loans are mostly an alternative option for those who would not qualify for a traditional loan. For example, if you have a bad credit score, you would not be able to borrow funds from many unsecured loan options.

Since car title loans use collateral to secure money, it would minimize the risk of lending cash to borrowers with poor credit. Many borrowers struggle to find funds through unsecured loan options, and an auto title loan makes the difference!

You would only need to satisfy the following requirements to qualify for a car title loan:

• Have a Qualifying Vehicle with Enough Equity
• Possess a Car Title in Your Name
• Have the Ability to Repay Title Loans with a Steady or Reliable Income
• Meet the Age Requirement of Being 18 Years of Age or Older to Apply

It’s essential to note that your car must have a certain equity amount to qualify for an auto title loan. While you can keep driving your car with a title loan on it, you must acknowledge how title lenders will place a lien on your title until you have paid off the loan. Once you finish the repayment process, the lender will remove the lien from the car title, making it clear! Don’t forget what will happen if you don’t pay off a title loan in full. Talk to your title lender if you need help during the repayment process.

Title loan lenders base your loan amount on these two factors: your vehicle’s equity and income. So if you’re hoping to acquire a significant loan amount, your car would need plenty of value, plus you will need the right income to support that monthly payment. If you don’t know your vehicle’s current equity, that’s pretty typical of most car owners! Thankfully, different online calculator tools can help you find a rough estimate and determine if your vehicle qualifies for funding. Keep in mind that the calculator can help you find out what you need to improve about your car’s condition to improve its equity. Be aware that the better the condition of your vehicle is, the larger its value could be!

Apply for an Auto Title Loan Today!

Now that you know it’s possible to keep driving your car with a title loan on it, it’s time to apply for one! While there are many title lenders or providers to choose from, some may offer extra perks besides allowing you to drive your car. These perks could include things like no prepayment penalties, a great online portal to keep track of your loan payments, great customer service, etc. The lender that you choose matters a lot!

But no matter which title lender or provider you opt for, you could continue to drive your vehicle with a title loan on it if you’re responsible with your payments! Find a lender that fits your needs and apply for funding today!