Having a lien on your car title can prevent you from getting a title loan when you really need it. If you’re facing a financial emergency and need quick cash, you’ll first need to get a lien-free title to your car.
In this simple guide from Delaware Title Loans, Inc., we’ll show you how to remove a lien from your car title and how to use your lien-free title to apply for a car title loan.
What Is A Lien And Why Does It Matter?
A lien is placed on your car title when you take out a loan to buy your vehicle or borrow against it. Until you pay off that loan in full, the lienholder (often a lender, bank, or dealership) is considered the legal owner of the car.
Why it matters:
You can’t get a title loan unless you own your car outright. That means your title must be lien-free.
The Steps To Getting A Lien-Free Title To A Car
How Do I Remove A Lien?
A lien is placed on your title when you take out a loan, either to purchase a car or for emergency money.
As a result, the car isn’t technically yours until the loan is paid off in full; to the contrary, the lender is considered the legal owner. Liens are meant to protect the interests of the lienholder if you are purchasing a car or borrowing money for an emergency.
A lienholder, in this case, is the legal owner of the vehicle, a legal person or entity to whom you owe money. A lienholder can be a bank, financial institution, direct lender, or individual. In rare cases, mechanics, towing, impounding, and storage services can serve as lienholders, too.
Removing a lien from your car title involves paying your debts and having the lien released from your title. The process for doing so varies by state, but in Delaware, you’ll need to do the following:
- Pay off your loan
- Process the lien release at your local DMV office
Pay Off Your Loan
The first step towards removing the lien from your car title is to pay off what you owe on the vehicle, either to your direct lender or to the entity who loaned you money to buy the car. There’s no removing the lien until the debt is repaid in full; remember, until the lien is covered, the lienholder is the legal owner.
Most lienholders will be willing to work with you to explain your repayment plan and set a date for you to reclaim ownership. Once done, you can expect to receive the lien release form several business days afterward. This form proves that you, as the borrower, have repaid your debts and that the lienholder agrees to remove the lien.
Process The Lien Release
Once you have the lien release, your next step is to head to the local DMV office with the following items:
- The lien release letter
- Car title
- Registration card
- Proof of insurance
- Delaware driver’s license
- Payment for the $35 fee
A DMV employee will process the appropriate paperwork and issue you a new, clear car title.
Using A Lien-Free Title To Get A Title Loan
Now that your car title is clear, you can leverage its value when you need emergency cash. Delaware Title Loans, Inc. offers up to $15,000 for title loans.
You’ll need the following requirements:
- Your driver’s license or state-issued ID
- Your lien-free car title
- Your car itself for a brief inspection
How Our Title Loan Process Works
- Fill out our online inquiry form
- A loan representative will contact you quickly
- Schedule a meeting at your nearest location or a spot that’s convenient
- Your car will be inspected, and your documents reviewed
- If approved, you can receive up to $15,000 the same day or the next business day!
Why A Lien-Free Title Is Important For A Title Loan
Whether you’re dealing with an unexpected bill or need cash fast, having a lien-free title to a car opens the door to getting a car title loan without delay.
If your car title still has a lien on it, take steps now to clear it. Once that’s done, you’ll be able to unlock the full value of your vehicle when you need it most.
Ready To Get A Title Loan?
Delaware Title Loan offers fast loan options for people struggling with financial emergencies, but it’s paramount that you have a lien-free title to a car. Now that you understand the process of removing a lien from your car title, you’re well on securing an auto title loan.
These loans can be a worthwhile resource to consider if you’re struggling to handle life’s challenges. If you’re facing something beyond your capability, consider completing Delaware Title Loans Inc.'s online inquiry form to start today!
Start your title loan application now!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
