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Why Title Loans with Liens Aren’t Typically Available in Memphis

Why Title Loans with Liens Aren't Typically Available in Memphis

When it comes to juggling finances, there just aren’t a lot of quick, short-term options out there. However, there is one fast and easy option that requires no credit checks or waiting periods: the title loan. Also known as a car title loan, it is one of the most valuable and easiest options, but perhaps least well known and understood.

Car title loans leverage a vehicle’s value against the loan. The amount received ranges depending on location, but in Memphis, the range is from $150 to $2,500 (again, depending on the car, truck, or SUV’s worth). It’s a reasonable range that can come in handy for patching up the monthly budget to help handle any financial difficulties that may arise.

To be eligible for a title loan, the applicant must be at least 18 years old and have a drivable vehicle with a lien-free car title and a photo ID. The lien-free title is especially important, and means that the vehicle is owned by—and in the name of—the person receiving the title loan. The owner is not making payments on the vehicle to any other lenders, and has paid in full for it.

While it may seem obvious, some borrowers don’t comprehend why it is important for lenders to require lien-free titles. If any other lending institution like a bank or credit card company can make claim to a vehicle, then that means they have a lien on it. To still have a lien on a vehicle indicates that it has been financed (and therefore is owned) by another financial institution, and is still being repaid. In other words, having a lien on the car’s title means that the only parts of it owned are the parts that have been paid off.

This is exactly why lenders don’t issue title loans with liens on the vehicle. If the borrower doesn’t own all of their car, they have no collateral and therefore nothing to leverage the loan’s value against. While the borrower repays the loan and can continue to use the car, the lender holds on to the title. If a car title loan borrower never repays the loan, then the lender keeps the title as final repayment. The lender cannot do this with title loans with liens because there are other lending institutions already awaiting repayment on the vehicle. The lending institution isn’t applying for the loan; the borrower is, and this is why the borrower needs to be the sole owner of the leveraging vehicle and no one else.

While lenders will not issue title loans with liens because of the reasons above, borrowers who do own their vehicle in full need not worry. If you need quick cash in Memphis, and you own a lien-free vehicle, a title loan from Mid-South Title Loans can get you cash when you need it. Just bring your car and lien-free title by any of our three convenient Mid-South Title Loans locations in Memphis today!


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1680 Winchester Rd
Memphis, TN 38116
Phone: (901) 346-1040

4965 Summer Ave.
Memphis, TN 38122
Phone: (901) 821-9211

2798 S. Perkins Rd.
Memphis, TN 38118
Phone: (901) 794-5460