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Can You Get a Title Loan if You Have a Lien?

Can You Get a Title Loan if You Have a Lien?

Many people in the United States need a loan but do not have the means to obtain one. Often, poor credit, fair credit, or limited credit histories are the most significant issues when it comes to securing a loan with a nationally-recognized bank. Wells Fargo, for instance, generally does not approve people looking to borrow from their company if they have a credit score of less than 620. For comparison – that is not even the lowest a credit score can go. 620 is the middle range for a “fair” credit score rating, and nearly 20% of Americans fall into the fair range. This credit score often does not accurately represent the potential buyer, as even those who make payments on time every month can have a score in this range if their credit card or line of credit usage is high. Almost as many Americans fall into the “poor” credit score rating – about 16%, to be precise. This means that for almost 40% of the nation, obtaining a small personal loan for necessities like a car, a house repair, or an unexpected medical bill could be so far out of reach that paying for these necessities must wait.

title loans with liens

It could be argued that the bad image surrounding short-term lenders, including title loan lenders, revolves around the misconceived notions that these lenders will exploit desperate loan seekers’ needs. Title loan organizations are labeled at worst as loan sharks and at best as expensive and risky. But title loans and other short-term loans often provide a viable alternative to those with poor credit or to those who might need cash quickly. Even for those with a car, there are sometimes limits to title loan applications – mainly in the form of liens.

Are you interested in getting a title loan but are unsure if your car qualifies? Read on to learn more about liens on titles and their impact on a title loan application.

What is a Lien?

A lien, in legal terms, is a document that designates legal ownership over an object. Usually, this is in instances where ownership might be hard to determine or is potentially partial in its nature. In the case of a car, liens are most often present when a person is making payments toward full ownership of a vehicle, as you might on a car that was purchased using dealership pricing. All insurance and ownership responsibilities revert to the person making payments on the car, but the dealership or lien holder still technically has ownership over a vehicle and can repossess it if payments are not being made. This makes it possible for a person to register and insure a car in their name but for the vehicle to remain in the legal custody of the dealership or other issuing identities.

Why Do Liens Matter?

Obtaining a title loan with a lien is a little different than getting a title loan on a car that you own outright. When you own a car and wish to take a loan out against the title, you go to a lender and make sure that you bring both your vehicle and your car’s title with you. From there, you fill out the application, and once approved the lender will appraise your car. Taking into account the condition, year, make, model, and rarity of the cars, the lender will provide you with the estimated value of the car and offer you a loan based on that assessed value. If your car’s title has no lien, you usually get a credit for the entirety of the associated value.

If your car’s title has a lien on it, lenders that approve titles with liens go through the same appraisal process they would go through on a car that doesn’t have a lien on the title. However, instead of the customer getting a loan for the full value of the car, the loan provider will make the estimate and then subtract the remaining amount owed on the car. At that point, the loan provider is the owner of the car, and your payments will be made directly to them. Typically, this can put the title loan customer in a tough situation. In essence, this is like remortgaging a house, whereas you now owe the original amount you had left toward full ownership of your car as well as the amount you borrowed against the car’s value. Additionally, title loans are often short-term, and it can be hard to pay such a large loan amount in such a small amount of time.

Can I Get a Title Loan With a Lien at Mid South Title Loans?

Mid South Title Loans cares about their customers, but they are also serious about their customers’ long-term financial health as well as their legal responsibilities. To get a title loan through Mid South Title Loans, your car must be lien-free, and you must own it outright. This ensures that you get the full amount in cash on the value of your car. Many title loan customers who have liens and seek title loans with liens become disappointed when they realize that their brand new car might not be worth as much as they expected in title loan cash. Additionally, to get a title loan with Mid South Title Loans you must be 18 years or older, your vehicle must be driveable (meaning you cannot tow a car that does not run to the title loan agency), you must fill out our entire application and you must have a form of photo ID present and ready to hand over to the loan officer working on your case.

Mid South Title Loans is a leader in title loans in Memphis, Tennessee. With locations on 1680 Winchester Rd, 4965 Summer Ave., and 2798 S. Perkins Rd. in Memphis, we aim to serve customers in the greater Memphis metropolitan area. Applications take minutes to fill out, and for approved customers we guarantee you cash in hand 20 minutes after you are approved for a loan. Know what you need and want to save time? Fill out our online application before you come in. For more information on how Mid South Title Loans can help you get the short-term loan you need, contact us 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