Can I Get A Car Title Loan Online If I Already Have Debt?

So, you're looking to get a car title loan online but have never done it before. There are probably some questions you just don't have the answers to. For instance, if you already have debt, can you get a loan that adds even more debt? 

It's a fair question and one that many people have. Today, we'll answer it, and tell you everything else you need to know about getting a car title loan online.

How A Car Title Loan Works

This is fairly straightforward and important to understanding why debt could potentially be a problem if you are trying to get a loan such as this. If you are the legal owner of a vehicle, you have a title for it. It's an official document with your name and the vehicle’s information, denoting you as the legal owner.

With an online car title loan, you, as the borrower, put up your car title as collateral for the loan. In other words, you are offering up ownership of your vehicle as collateral, which is what you offer in exchange for the loan money. If you don't meet your loan agreement obligations, the lender will gain legal ownership of your vehicle to recoup their losses.

But as long as you make your payments on time, you get to keep your vehicle for the entire duration of the loan, and obviously, if paid in full you don't forfeit it afterward. Admittedly, this might not sound like a very good trade. You have to risk your vehicle. Is there any upside to that? Well, yes, actually there is.

You Can Get A Car Title Loan Online Even If You Have Debt

When it comes to some types of loans, having pre-existing debt can make it hard to get approved. But why is that? Well, a lender always needs to judge how likely they will get their money back from any particular borrower. Many factors go into consideration, but one of them is existing debt.

If a lender sees that you already have debt, and you are barely making enough money to pay off that loan, then they have every reason to believe you will have an even harder time paying them back. Thus, they may feel that you are too risky to approve when it comes to a loan. 

However, existing debt is not a huge issue if the loan involves collateral. After all, if you put your car up as collateral, then the lender doesn't have to worry as much: even if you don't manage to pay them back, they will have your collateral as another means to recoup their losses. 

This means that existing debt doesn't bar you from getting a car title loan online, nor does it greatly impact your chances. The only way it would be a problem is if your debt is from another car title loan on the same vehicle, but that's because you can't use the same vehicle as collateral in two different loans.

Ultimately, this means bad credit doesn't prevent you from qualifying for a car title loan online, since collateral provides financial security to the lender. While you have to offer up collateral, it ultimately means that these types of loans are easier to get.

Getting A Car Title Loan Online With The Help Of At Home Title Loans 

At Home Title Loans isn't a lender. But we do help you connect with the ideal lenders in your area, and no matter who you connect with, we promise the process is quick and efficient. The process is almost universal among our various vendors, so we'll run you through it now.

Once you reach the website of the lender we've recommended, you'll be able to submit an inquiry form there, telling them what kind of loan you are looking for. One of their representatives should get in contact with you via phone as soon as they are able. Their job is to set up a time and place to meet with you in person.

You'll need to bring your state-issued ID, your lien-free car title, and your car to that meeting so they can be verified and inspected. The condition and age of your car will determine whether or not you qualify and how much money you can get from the loan. 

Assuming you qualify for a title loan online, the representative will have you sign the required papers, and you'll be able to get your money either that day or the following business day. It truly is one of the easiest things out there.

Get Started Today!

Filling out the basic information requested on the online inquiry form will take only a  few minutes. The whole title loan process can take as little as 30 minutes, making a loan such as this quick and convenient when you need emergency cash fast.

So, if you need a car title loan online now, give us a call! We'll connect you with the perfect vendor today!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.