Can I Get a Loan if My Car Has an Outstanding Balance From Another Loan?
October 16, 2024
A car title loan can save you a lot of grief during a money crisis, providing enough funds to cover sudden expenses and helping you grow your savings more effectively. With that said, its advantages will look slightly different if you enter the process with debt from a different loan. This applies for any loan option you choose, adding more pressure to an otherwise smooth process. Still, a car title loan offers enough flexibility to ensure that this isn't a deal-breaker.
The Car Title Loan Process
Car title loans are tailored to simplify the process for those dealing with unusual circumstances. For instance, it doesn't disqualify unemployed people or people with bad credit. There are no searches on your credit history, so you can still be approved for the loan after showing proof of your ability to stay on schedule with the payments.
To get started with the process, car title loan companies like Quick Cash Auto Loans provide options to apply for the loan online and save time before approval. Clients then get an outline of all the requirements to fulfill during the loan appointment, with a list of documents that's much more manageable than what you'd get at a bank or a credit union.
At the appointment, you can complete the remaining steps in the process, so there's no need to save multiple dates on the calendar or prepare your paperwork weeks in advance. The loan specialist will evaluate the vehicle before calculating the amount.
Since the vehicle doesn't work as collateral, the company has no reason to keep it for the duration of the repayment period. Keep in mind, however, that its overall condition will affect how much you get on an auto title loan. The representative will look into things like its make and model, its mileage, age, and overall condition.
After going over the terms of the loan, you'll be asked to sign the loan agreement, and the representative will give you the agreed-upon amount right then and there. You'll be allowed to drive your car freely, and our specialists will always be available to provide assistance if you want to avoid the risk of repossession.
What Is Outstanding Balance in a Car Title Loan?
To start off, let's define outstanding balance in more general terms. It basically refers to the amount you owe out of a loan that charges interest. As defined by
Carplus, it represents the principal amount borrowed, minus any payments made towards the loan, plus any applicable interest and fees that have accrued.
Basically, your outstanding balance starts with the full loan amount and decreases with each new payment. So, the main question would be if you're allowed to apply for a second loan while you're still paying for another car title loan. The answer to this is yes. Most loan companies allow clients to ask for a second loan, but when it comes to car title loans, you can't use the same vehicle the second time around.
A second loan is a completely separate process. You need a vehicle that's not beholden to any ongoing transaction, and the loan itself will have its own set of terms, unrelated to the conditions and schedule you've established for your first loan.
You can even apply for a new title loan after defaulting on a previous loan, as long as the default has been cleared. If the outstanding balance comes from a car loan, with the car itself as collateral, the same rules apply. You can't use that vehicle for a second loan.
Our Specialists Are Ready To Assist You
If you don't think you're eligible for a car title loan, don't lose hope before reaching out to Quick Cash Auto Loans. Car title loans are known for following a versatile process, and our staff strives to show that at every step of the way. That's why we provide the most flexible schedule options so you can complete different deadlines seamlessly and without any stress.
We also count on a reliable payment system that allows you to make your payments in minutes and from any location. Your private information will be protected at all times, and you can go through the repayment schedule without having to visit the loan office. If you're still paying for one loan but need extra cash to cover additional expenses, we have all the options to help you navigate the process without getting overwhelmed.
Avoid harming your budget and get the money you need without risking debt! The specialists at Quick Cash Auto Loans are ready to support you as you work to protect your financial stability. You can count on us for a smooth, fast loan process, and we're ready to offer different options to make the process less stressful depending on your circumstances. Contact us today for more information! Our staff will be happy to assist you! You can call
(786) 600-3411 or
fill out the application form to get in touch with us. Apply for a loan today without leaving the comfort of your home. Quick Cash Auto Loans is here for you!