Car title loans can be a lifesaver, especially when dealing with an unexpected financial emergency, regardless of what that emergency might be. These types of loans are specifically designed for borrowers who need access to quick cash. However, they’re secured loans that use your vehicle title as collateral.
However, you might have heard that you can’t get a loan without proof of vehicle registration. This article will discuss whether you can get a car title without the car being registered and whether or not you can get a title loan without the car registration.
Car Title vs. Car Registration: What’s the Difference?
Before we dive into whether you can get a car title without the car being registered, let’s discuss the differences between car titles and car registration. The two terms aren’t synonymous with one another, and one is the prerequisite for the other, but not the other way around.
The basic difference between the two is that the vehicle title shows proof of ownership of the vehicle. Vehicle registration, on the other hand, signifies that the vehicle is registered with the state and cleared for use on the road.
Both documents are issued by the Department of Motor Vehicle (DMV), but where the car title requires renewal upon the change of ownership, the frequency of registration renewals depends on each individual state’s laws.
What Is a Car Title?
A car title is a legally recognized, DMV-issued document that attests to the ownership of the vehicle. When you buy a new car from a dealership or another type of retailer, the dealership is required to submit a Manufacturer Statement of Origin (MSO) to your state’s DMV.
The MSO demonstrates the vehicles’ new status, along with the vehicle identification number (VIN) and the manufacturer’s transfer of ownership to you as a new owner of the vehicle. After you submit the application, the DMV office will handle the necessary paperwork and issue an actual vehicle title on watermarked paper.
When you sell your car, you should fill out the pertinent sections of the title so that the new owner can use it to prove the ownership chain. They will subsequently submit an application for their own title, along with the current odometer reading and a bill of sale. Once their application is processed, they’ll receive the certificate of title via mail.
It’s worth noting that there are approximately 20 different types of vehicle titles, like salvage titles, out-of-state titles, and clear titles.
What Is a Car Registration?
A car registration formally validates that a vehicle can be driven on public roads and ties the vehicle to both its owner and the state it’s registered with. Each state mandates that motor vehicles have to be registered with the relevant government bodies, which subsequently issued a vehicle registration certificate.
Besides identifying the legal owner of the vehicle, car registration also contains information about the vehicle, such as the VIN, the owner’s residency, the license plate number of the vehicle, its make and model, as well as the registration number and expiration date.
The vehicle registration certificate attests that the state has cleared the vehicle for use; driving an unregistered vehicle is against the law. The sticker tags that you have on your windshield and license plate indicate that your vehicle has an active registration and that it’s road legal.
Registration is really important, as without it, you can still own the car, but you can’t drive it legally on public roads. You usually receive a vehicle registration from the car dealership when you purchase the vehicle from a dealer.
However, if you’re buying a used car from a private party, you’ll have to transfer the title and legally become the owner of the vehicle before registering it on your own with the local DMV. Registering your vehicle is rather simple, and you’ll only need a few things:
- Title in your name
- Pass an emission or smog check
- Pass a vehicle safety inspection
- Proof of insurance
Law enforcement officials can request to see your vehicle registrations. It’s an officially recognized document that makes the vehicle road legal, so keep your registration card or paper document with you while you’re in your vehicle.
Can I Get a Car Title Without a Registration?
There isn’t any legal requirement to register your car after you buy it unless you’re going to drive it on public roads. For example, you might’ve bought a car that needs extensive repair. You can work on it without the car being registered and register the car once it has been certified as road legal.
However, regardless of whether you’re going to register the vehicle or not, it’s important to obtain the car title from the previous owner. Failing to do so is called title jumping or a floating title. It’s an illegal practice involving purchasing a car and reselling it without titling the vehicle in the reseller’s name.
In certain situations, title jumping can have severe legal consequences for both the previous and the new owner of the vehicle.
What Happens If I Lose My Vehicle Title?
While it’s common sense to exercise caution when storing important documents, losing a car title isn’t unheard of. You might’ve misplaced it, or it got stolen or irreparably damaged. Fortunately, all states have a duplicate title process if you find that your original title has gone missing.
In most cases, owners must provide a duplicate title request and receipt, the vehicle’s identification number, a duplicate title fee, a valid photo ID, a power of attorney in case of an owner, and a lien release on the lienholder’s name for all active liens.
Please note that your local government might require additional documents. The process might take several weeks to complete, after which you’ll be issued a new title. The duplicate title has the word “duplicate” printed on the face of the document and once issued, it voids the validity of the original.
In the event that the original title is found, it has to be destroyed to ensure that it can’t be used in sales or title transfers associated with the vehicle.
What Happens if I Lose My Vehicle Registration?
If you lost your vehicle registration card or you suspect it was stolen, your local DMV office, or another vehicle-related government office, can help you replace it. The office will likely require important information, such as title, required documents, and a small fee.
The best possible approach is to contact your local DMV office to find out precisely what you’ll need. Regardless of the state in which you live, the steps for obtaining a new registration card are often the same:
- Complete the application
- Pay a registration fee
Most states will require that you fill out a registration request application; these are available at the DMV or can be printed from their website. Your local DMV’s website is actually a great source of information regarding specific requirements related to obtaining a duplicate registration card.
You’ll have to state your name and current address when filling out an application for a duplicate registration. You may also have to provide the following:
- Government-issued photo ID or a driver’s license
- License plate number
- Vehicle Identification Number
Some states might even require the make, model, year, and color of the car, as well as the odometer reading. Make sure that you bring proof of insurance, just in case. You’ll still have to pay a small fee to replace a lost or damaged vehicle registration card.
Individual states may impose additional costs for the application procedure alone or for submitting the application online. Your local DMV office should be able to tell you the cost associated with duplicate registration card requests if you give them a call.
How to Get a Car Title Loan for My Vehicle
A car title loan, also called a vehicle loan or a pink slip loan, is a secured loan specifically designed for people needing fast cash, allowing them to pledge their vehicle as collateral. To obtain this type of loan, a borrower must own the vehicle or, in some cases, owe very little of it.
Since car title loans are secured loans, which also means that they pose very little risk to moneylenders—lenders, such as 5-Star Car Title Loans, aren’t usually concerned with borrowers’ credit scores. This allows applicants with bad credit scores to qualify for cash and continue driving their vehicle for as long as they responsibly pay back their monthly installments.
Applying for a car title loan with 5-Star Car Title Loans is pretty straightforward. You apply for the loan with the lender, who then reviews your application, and, based on their assessment, either approves or declines your loan. Here’s a breakdown of the process:
Step 1: Apply for the Loan
Regardless of whether you’re applying for a secured or unsecured loan, it’s always a good idea to check your FICO score. These checks can be performed without the help of your credit card company or a credit bureau by using free website services found online.
As stated above, applying for a loan with 5-Star Car Title Loans is very simple and takes no more than five minutes to finish. You can pre-apply online by completing an application form found on the lender’s website or by calling the 5-Star Car Title Loans at (888) 309 0994.
In either case, you’ll need to know your FICO score to complete the pre-application process, which only takes a few minutes. In case you’re not sure what your FICO score is, the lender reserves the right to perform a soft credit check with the Credit Bureau, which won’t affect your score in any way.
Additionally, you’ll have to provide basic information about yourself, including your personal details and contact information. Regardless of whether you applied online or via telephone, the loan agent will review your application and determine whether you’re eligible for a loan. Once your eligibility has been established, the agent will call you by phone to finalize the process.
What Factors Determine My Loan Eligibility?
Your car title loan eligibility is determined by several factors, including:
- Income — Both your monthly and annual income may be considered, as they may pose a significant factor in determining eligibility. Lenders need to make sure that you’re able to make continuous monthly installment payments. The great thing about title loans, however, is that all sorts of income apply (more on that in the latter section).
- Ability to Repay — This factors in your income, your expenses, as well as any pre-existing debt to provide a more detailed picture of whether you’re able to repay the loan.
- The Value of the Vehicle — The value of your vehicle and your equity play an essential role in determining eligibility and loan amount.
- Credit Score — Lenders typically use your credit score, also known as the FICO score, to determine your eligibility for a loan. While this mostly happens with unsecured loans, those who borrow secured loans backed up by collateral aren’t excluded from credit checks either. However, these are rarely used to determine eligibility but rather to determine the best possible loan terms.
Step 2: Provide the Necessary Paperwork
After an agent reviews the information you provided during your application, conditional approval could be given, even though documentation review is pending. When that happens, you’ll have to provide the lender with the necessary paperwork.
In most cases, you’ll have to visit a branch office, but some lenders allow their potential borrowers to complete the entire process online or via courier services. It’s worth noting that the latter typically extends the approval period due to delivery services.
In either case, you’ll have to provide the following documents during both the pre-application and loan application process:
- Government-issued Photo ID — Any federal or state-issued photo document is valid, including your photo ID, driver’s license, and passport—any document that can be used for personal identification. This might include your social security number as well.
- Proof of Residency — You might need to provide the lender with proof of residency if required. Any document bearing your name—which should coincide with the name on your government-issued ID—should be acceptable.
- Proof of Income — You might have to provide proof of income to demonstrate your ability to repay the loan. Fortunately, title loans accept all forms of income, and you can use your bank statement, tax returns, pay stubs, and pension statements as proof of income.
- Qualifying Title to the Vehicle — Since your car (or some other vehicle) is used as collateral, a car title is only needed to acquire a car title loan. This title has to be lien-free, and you have to be a registered owner on the title. However, your car doesn’t have to be registered to obtain the loan. Besides titles, lenders may also require photos of the car.
You’ll have to deliver the aforementioned documents to the lender’s agent for further review. Once the documents have been reviewed and your loan approved, the agent will make you a loan offer based on the assessed information.
Step 3: Get your Loan
If you find the loan terms and the loan amount satisfactory, signing the contract is really simple. The best way to do this is to visit a branch office, but if that isn’t an option, the contract can be delivered to your home for signing. Please note that the latter option lengthens the process.
You’ll need to provide the lender with your banking information, like a checking account and routing numbers. This isn’t really necessary, but it aids the process; if you lack a checking account, the 5-Star Car Title Loans can deposit the money using MoneyGram.
Most lenders will transfer the money to a specified checking account within 24 hours following the signing of the contract, weekends and holidays not included. Now all you have to do is make regular monthly installments to repay the loan.
Step 4: Repay the Loan
Ensure that you make timely payments to avoid defaulting on your loan; if you do, the lender has the right to repossess your vehicle. 5-Star Car Title Loans encourage borrowers to pay often and early to avoid any additional finance charges.
Fortunately, the company issues no prepayment penalties or hidden fees on title loans; you can repay your loan sooner than expected. In fact, repaying the loan earlier allows borrowers to avoid paying unnecessary interest. It’s important to note that a successful and timely repayment of your loan might actually be reported as a positive mark on your credit report.
Bonus: 5 Tips for Getting a Car Title Loan
Here are five tips meant to help you obtain a car title loan:
Choose a Reputable Title Loan Company
Unfortunately, as with any other industry, some lenders are more reliable than others. It’s important to check online reviews and, if possible, talk to friends and family who have dealt with a particular car title lender in the past before choosing a said lender.
Reviews can reveal crucial information about how long the approval process takes, how well the lender’s customer care service treats the customers, and whether or not typical consumers are really qualified for competitive rates.
Watch out for Hidden Fees
Personal loans, car title loans included, may feature several hidden fees, including application fees, origination fees, prepayment penalties, late payment fees, and check processing fees. Some lenders may also charge additional fees for services such as credit report pulls or loan documentation.
Luckily, 5-Star Car Title Loans have no hidden fees associated with our title loans. In fact, we pride ourselves on our transparency. With that said, we encourage you to read the loan agreement carefully and ask any questions you may have before signing to ensure you understand all of the fees (if any) associated with the loan.
Understand Your Repayment Options
The loan agreement also encapsulates your repayment options, so make sure you understand them: Some common repayment options include:
- Monthly payments — This is the most common repayment option granted by 5-Star Car Title Loans. The borrowers make fixed monthly payments for the duration of the loan term or until the loan is paid, whichever comes first.
- Bi-weekly payments — This option implies making half the monthly payment every two weeks, thus reducing the total interest paid over the duration of the loan.
- Accelerated payments — This type of payment allows the borrower to pay off the loan early without penalty, which reduces the total interest paid over the duration of the loan.
- Deferment or forbearance — These options allow borrowers to temporarily postpone or reduce their loan payments under certain circumstances, such as unexpected financial hardships. In case you’re having difficulties repaying your loan, don’t hesitate to call 5-Star Car Title Loans; we’ll find the best possible solution that would keep you from defaulting on your current loan.
It’s important to note that not all lenders offer all the aforementioned options, so it’s really important that you read and understand all the terms and conditions of your loan.
Consider How Quickly You Can Receive Your Payout
It’s important to plan ahead, especially if you’re facing unexpected hardships and need the money fast. 5-Star Car Title Loans offer a quick and convenient way to submit your application, have your documents reviewed, and your loan approved.
It’s important to note that the final funding time begins from the time the loan requests get final approval, signed before 2 pm at your lender’s local time during a business day. In that case, the payout is deposited within 24 hours to the borrower’s account. Weekends and holidays are not included.
Have All the Necessary Documents Ready
It’s important to have all the necessary documents ready when applying for a car title loan. Having all the required paperwork ready before you apply can help avoid any delays or even a denial of the loan and help the process go smoothly.
In summary, you don’t need to register your vehicle to get a vehicle title. However, you can’t register a vehicle unless you have some sort of title that would designate you as the vehicle’s owner.
When it comes to car title loans, you typically don’t have to register the car to get a car title loan since the loan is secured with the vehicle’s title. With that said, some lenders may require proof of registration and insurance to ensure that the vehicle is road legal.
If you want to learn more about car title loans, visit 5-Star Car Title Loans, or call us at (888) 309 0994. The company specializes in car title loans and installment loans online and will do its best to meet your needs and even help you on your journey toward financial well-being.