Do you need a car title in your name to get a title loan?
You might be wondering- is it possible to get a title loan if I haven’t transferred the title over in my name?
The short answer is no, but there is more nuance to that. The reason why is that title loans are collateral-based loans.
Your vehicle’s title is essentially the collateral for the loan, and you cannot leverage an asset that is not in your name. In order to borrow off of the vehicle’s value, the car title will have to be in your name at the time of inquiry.
However, transferring the title over to your name is not difficult. All you will need is the right paperwork, a little bit of cash, and to visit your local motor vehicle office! It can be that simple, and they do the hard work for you.
How to get a title loan if you haven’t transferred the title over to your name
First, the seller will need to release ownership of your car. This is done by them signing the title.
Then, you can take the car title to your local Department of Motor Vehicles. From there, you will provide the necessary paperwork, and the state will issue a new registration on the title. In almost all states, registration is a legal necessity.
This process does cost a little bit of pocket change, depending on your state. In some states, you will need to provide some information about your cars, such as the sale price and the odometer reading.
However, the car title is what proves you own the vehicle.
Without the car title in your name, the car is not yours to use as collateral for a loan. The exception to this rule is that if you are currently financing your vehicle, you can use a title loan to refinance your current loan.
You can use a title loan to buy off you’re existing auto loan, granted that you must qualify for a title loan first. You will need to sign some paperwork and put your current lender in contact with your chosen auto title loan lender.
But, transferring your title over to your name does not need to be a hassle!
Just gather the correct documents and get your method of payment ready. Once your title is in the right shape, you can apply for a car title loan online or over the phone with LoanMart!
In fact, title loan agents with LoanMart could help you walk through the process of transferring your car title. Just one of the many perks of helpful customer service agents!
Other documents you will need to get a title loan
While your car title is one of the most important documents you will need to get a title loan, once it is transferred over to your name, there are other documents you will need to submit with your title loan application!
However, one of the perks of applying for an online title loan is that you can submit these documents online via email or fax.
The exact documents you need can change from state to state, but in general, you can expect to need these documents handy:
- Proof of Income: While you do not need an office job to apply for a title loan, you will need bank statements, pay stubs, or other documents that can prove your income/alternative income.
- Proof of Residence: You will need proof that you live in the state you are inquiring from. Use recent utility bills, bank statements, or even credit card statements to prove your address.
- Recent Photos of the Car: While a vehicle inspection is required for a title loan application, some title loan options can allow you to opt for an online inspection. Just submit a few recent photos of your car, taken in clear lighting!
- State or Government-Issued ID: This ID must be valid, but you can use a driver’s license, military ID, or passport.
Don’t wait to get a title loan and transfer the title over to your name with some title loan options, like title loans serviced by LoanMart.