What Is A Lien-Free Car Title?
Understanding liens and how they impact your chances of getting a car title loan is an important matter. If you're facing a financial emergency to handle urgent expenses, it's essential to understand the definition of a lien-free title.
A lien-free title, also called a clear title, indicates that your car is free of all liens, debts, or judgments that would negatively impact your chances of securing a title loan.
If you already have a lien-free title, you’re most of the way there to get ready to apply for a title loan, but if not, don’t worry! Keep reading to discover the simple process for removing the lien from your car title.
The Definition Of A Lien-Free Car Title
Why Is A Lien-Free Title Important?
Direct lenders always insist that your car title is lien-free before approving you for a loan. The simple reason is that if a car title has a lien on it, another third party has a legal claim on the title if the debt goes unpaid.
Since the car’s title serves as collateral for a title loan, a lien renders the significance and security of the car title null and void; moreover, to secure your loan and give you the incentive to repay the loan according to the terms, your direct lender needs to put a lien on your title—something they can’t do if there’s already a lien on there.
As such, it’s essential to clear up your liens with your lienholder before you apply for a title loan. You can check if you have a lien via the following three methods:
- Checking with your DMV office to search using the VIN for liens
- Looking directly at the car title, which will usually list the lienholder
- Getting a vehicle history report
Why Is There A Lien On My Car Title?
Believe it or not, getting a lien on your car title is possible without realizing it. This can happen in the following circumstances:
- You purchased the vehicle via a loan
- You borrowed money to repair the vehicle
- You obtained a title loan
- You owe money to the state
Understanding who put the lien on your car is the first step towards getting it removed since the process can vary based on who you owe.
How To Clear A Lien
Your first step to clear a lien is paying back whatever you owe. As the lienholder, the owed party has legal rights regarding the car title that prevent you from taking action until the debt is paid. Whether it’s a purchase loan, title loan, or fine, you can’t take action to have the lien removed until the debt is settled.
Once you’ve paid off what you owe, you can ask the lienholder to remove the lien from your title. They will sign the lien over to you to denote you as the legal owner, which needs to be updated on the title itself. The method to do so depends on the state, but in general, you can follow these steps:
- Apply for a duplicate title
- Include your lien release form provided by the lienholder
- Include the original title with the lien
- Pay any associated fees
The lienholder will also provide you with a release form acknowledging your payment.
How To Get A Car Title Loan With A Lien-Free Title
Now that your car title is lien-free, you can get started on the process for a car title loan with Nevada Title and Payday Loans, Inc. To begin, fill out our online inquiry form. Then, wait for a representative to contact you and review the loan details.
Meet with the representative at one of our convenient Nevada Title and Payday Loans, Inc. store locations and bring along the following items:
- Driver’s license or state-issued ID
- Lien-free car title
- Your car itself for inspection
The condition of your car plays an essential role in determining what you may qualify for, and the loan associate will need to verify your identity and your car’s condition in person before determining your eligibility for the loan.
Once the inspection is done, the associate will let you know if you’re eligible for a car title loan, and if so, you can expect to receive the quick money you need either that day or the following business day.
Fill Out Our Online Form Today!
A lien-free title is essential to securing a car title loan, but now that you know how to check for liens and clear them, you’re all set to fulfill this title loan requirement. Whether looking into a loan for medical expenses or paying for essential repairs, understanding the requirements puts you one step closer to getting the quick cash you need. If you’re ready, get started with our online form today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.