Can You Get a Title Loan With a Lien?
Table of Contents
- What is a Lien?
- What is a Title Loan?
- How Does a Title Loan Work?
- Can You Get a Title Loan With a Lien?
Does this sound familiar to you? You’ve got your paperwork in hand, you head to the bank, and end up waiting for an extended period of time before you can get the help you need. Then you have to get more paperwork done, more investigations into your financial and employment history, and endless questions about your credit score and report. You go through the entire process that is demanded by the bank. And then after doing all of that paperwork, you find out that your loan application was turned down by the bank.
The unfortunate truth is that many people go through this every day when they’re in their desperate time of need. What happens to those who get turned down?
TNL Car Title Loans wants to provide you with the loan you need even when other lenders are unable to do so. We won’t turn you down based on poor credit. If you were to go to the bank and you had a poor credit score, your loan application would mostly likely be turned down. However, with TNL Car Title Loans, if you have bad credit but are the owner of a vehicle with enough equity value, you won’t have any problems getting a loan with us. This is why so many customers who are in the down and out turn to us for help. We won’t turn you away in your time of desperate need.
However, what happens if your car has a lien on it? Read more below to find out.
What Is a Lien?
According to Investopedia, a lien is a legal claim on assets that are typically used as collateral to fulfill a debt. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. Liens on an asset can include valuable items such as a car, a house, jewelry, or other things. In the case of a title loan, a lien would be placed on your car since you are using your vehicle as collateral for the loan. In a car title loan, the borrower will transfer their car title under the lender’s name to hold, thereby placing a lien on the car. Once the loan is paid off, the lender will tranfer the title back under the borrower’s name. In the case where the borrower defaults on the loan, the vehicle will be under the lender’s ownership.
What Is a Title Loan?
Title loans use your vehicle to back the loan. Title loans are also known as pink slip loans, car title loans, or auto title loans. In the case of a title loan, customers borrow against the value of their vehicle. This means that lenders will use your car’s value to determine your loan amount. For example, if your vehicle’s current market value is $6,000, then your loan amount can be up to $6,000. Borrowers can still keep their car for personal use, but will need to transfer the vehicle title to the lender in order to back their loan. Should a borrower default on the loan and is unable to repay the loan in full, vehicle ownership will be transferred to the lender to cover the debt. However, when the loan is paid off, the lender will transfer the title back to the borrower’s name.
How Does a Title Loan Work?
Title Loans work as a quick and convenient solution for someone looking for a loan. Here’s how the process works.
- Give us a call at 888-663-7074 or fill out our quick online form,which will take under 5 minutes to complete. Once you give us a call or apply online, our loan officer will be in touch with you and answer any questions you may have about the process. You can get approved for your loan in less than 15 minutes.
- After you qualify for the loan, you’ll need to turn in some important paperwork such as your car title, your ID, proof of income, and vehicle registration and insurance.
- Once we receive your paperwork, you’ll be able to access your loan, which can be wired to your bank account or it can be accessed through MoneyGram, which is available in retailers nationwide.
Can You Get a Title Loan With a Lien?
So what if you are in need of a loan but you have a lien on your car? Depending on your specific circumstance, you may still qualify for a title loan. If your case involves a lien on your car because you have no paid off your auto loan, then the resulting issue is with the ownership of your vehicle. Since you are still paying off your car, the car is not 100% under your ownership yet and will not qualify for a title loan. However, in the case if your car is under a lien of another lender because of a title loan, depending on how much you owe, you may be able to refinance your title loan with TNL Car Title Loans. For this reason, because circumstances can vary, it is best to call in and ask if you qualify in your specific case.