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Across the United States, auto title loans are a popular loan option that allows borrowers to use their vehicle title to secure money. While the requirements may vary from state to state, one qualification stays the same– the car title must be in the borrower’s name at the time they apply.
But what if you don’t fully own your car and have outstanding loans against it? Could you still get a title loan without a clear title? Read below to see how that’s possible!
Is a Clear Title Necessary to Obtain Car Title Loans?
A vehicle title in your name is one of the main requirements for an auto title loan. There are various types of car titles out there, and a clear title is simply one option. If you currently do not have a clear title, don’t think that title loans are not an option for you.
Here are some of the several types of vehicle titles that drivers may have:
- ● Clear Title: This type of car title indicates that the vehicle owner has no outstanding loans on the car. The driver owns the vehicle, meaning the equity is 100% of the market value. A clear title is often required for car title loans, but if you don’t have one, you may still be able to qualify through certain title loan providers. Go online to find out which title loan lenders are okay with borrowers not having a clear title.
- Salvage Title: A salvage title is issued to a car by the insurance company after a heavily damaging accident or incident. Vehicles with a salvage title are considered a total loss and may or may not run. Also, cars with a salvage title are typically worth less money, which is excellent for people looking to purchase a vehicle on a budget.
- ● Junk Title: A junk title is similar to a salvage title but indicates that the car was sold to a junkyard. This vehicle is also just as inexpensive as a salvage car, so it could be suitable for people who don’t have a lot of money but need reliable transportation. However, many car enthusiasts suggest only selling junk cars for…
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