If you own a vehicle and the title was recently signed over to you, getting a car title loan on the vehicle may be possible. However, you cannot get a title loan with a title that is not in your name. You must show ownership of the vehicle; the only way to do that is for your name to appear on the title.
So, if you haven’t had the title signed over to you yet on a new-to-you vehicle, you must take that step first before applying for a title loan.
Reasons a Title May Not be In Your Name
If you own a vehicle, you may wonder why the vehicle title isn’t in your name. Here are a few common reasons:
- You have an auto loan: If you borrowed money to buy the car and haven’t paid it off yet, the lender is a lien holder on the title until you pay it in full.
- You received the car as an inheritance: If you received a car as an inheritance but didn’t go to the DMV to have the title changed, it’s not in your name.
- The seller didn’t properly transfer ownership: If a seller doesn’t properly sign over the title, you don’t have legal ownership because the title isn’t in your name.
Steps to Get a Title in Your Name
If you discover the car title isn’t in your name, you can take the following steps to get the title in your name before applying for car title loans:
1. Gather the Required Documents
Before you go to the DMV, you must gather the necessary documents to prove you are the vehicle’s rightful owner. The documents may include:
- Bill of sale: A signed bill of sale proves that you purchased the vehicle and are the legal vehicle owner.
- Proof of inheritance or gift: A will or other legal document proves that you inherited or were gifted the vehicle.
- Proof of auto loan payoff: A loan payoff letter or statement with a zero balance may release the lien holder if you paid the loan in full.
- Signed title: No matter how you obtain ownership of the vehicle, the seller must sign over the title for transfer.
2. Complete the Title Transfer Application
Visit your DMV online or in person to get a title transfer application. The buyer must complete the application and accompany it with the proof of transfer from step 2.
3. Find Your Local Department of Motor Vehicles
Next, find your local DMV to officially transfer ownership of the vehicle. Most offer in-person appointments or the option to transfer the title by mail.
4. Pay the Necessary Fees
Most states charge a transfer fee to process the title transfer. Be sure you know the fee and the applicable payment options, as each location has different rules.
5. Receive Your New Title
You may receive the new title immediately, or they may mail it in a few weeks. Inquire about your options, especially if you need it quickly.
How To Get an Auto Title Loan With Your New Title
To qualify for a car title loan if the title was just signed over to you, meet the following requirements for loan approval:
- Provide proof of income: You must prove you have consistent income that can cover your existing debts and the new title loan. This can be paystubs, bank statements, or any other proof of income.
- Supply proof of a lien-free title: Before you apply for a title loan, you must complete the title transfer process and have a lien-free title. This means there are no loans against the vehicle.
- Own a vehicle with adequate equity: Your vehicle must be in decent condition and have adequate value to allow you to borrow against it while keeping some of its value untouched.
- Provide proof of insurance (if applicable): If your state requires proof of insurance, you must provide a valid insurance ID that proves you have the proper coverage.
Good to know: If you aren’t the only person on your car title, you may need their approval to get a title loan. This is only the case if there is an “and” between names on the title. This signifies joint ownership and requires the consent of both parties.
FAQ
What is the Most You Can Get From a Title Loan?
Title loan lenders have different loan amounts they will approve, but some go as high as $50,000. How much you get depends on your ability to repay the loan and the value of your vehicle. The more your vehicle is worth and the more income you have, the more you can borrow.
Do Title Loans Hurt Your Credit?
Title lenders don’t report title loans to the credit bureaus regularly. However, if you miss too many payments and they send your loan to a collection agency, it could show up on your credit report. Most collection agencies report derogatory credit to the credit bureaus to get you to pay the debt.
Can You Get a Title Loan With Registration?
The requirements for title loans vary by state. Some states require you to provide a valid registration and ID before you can get approved for a title loan.
Can You Get a Title Loan Without a Title?
You cannot get a title loan without a title. Your name must also appear on the title. If you misplaced your title or need a duplicate title, a title loan representative may be able to assist you with the process of getting a replacement. Until you have the new title, you cannot get a title loan.
Final Thoughts
You can get a title loan if the title is signed legally over to you. You must go through the title transfer process, pay the necessary fees, and receive the new title to present to a title loan company. Because the car is the collateral in this secured loan, you must take care of the title transfer before applying for a loan.
If you’ve handled the title transfer process and are ready to apply for a title loan, contact Swift Title Loans today for fast processing and funding of your title loan.
