Life doesn’t stop when bills pile up. Sometimes, you need extra cash quickly, even if you already have other debts. So, what happens if you’re considering a title loan in Delaware while still managing existing payments?
Here’s a clear, straightforward guide on how title loans work, what to expect if you already have debt, and how you can apply safely and confidently.
What Exactly Is a Title Loan?
Before understanding how a title loan works when you already owe money, let’s start with the basics.
A title loan is a short-term secured loan that lets you borrow money using your vehicle’s title as collateral. The amount you can qualify for depends on your car’s value, not your credit score.
At Delaware Title Loans, Inc., you can use your car, truck, or SUV to secure a loan. All you need is a lien-free title in your name, a valid ID, and the vehicle itself for a quick inspection.
If approved, you could get up to $15,000, often on the same day you apply.
How Title Loans Work When You Already Have Debt
Having existing debt doesn’t automatically disqualify you from getting a title loan. But here’s what really matters:
1. Loan Amount Depends on Your Vehicle’s Value
Unlike traditional loans, title loans don’t rely on your credit score. Instead, loan amounts are determined by your vehicle’s:
- Condition — If you keep up with your oil changes, tire rotation, and other regular maintenance, the condition of your vehicle will likely be better. Therefore, your vehicle is worth more and you can qualify for a larger amount through a title loan.
- Mileage — The lower the mileage, the more valuable your vehicle. The higher the mileage, the less valuable it becomes.
- Age — Newer cars are worth more than their older models since they come with flashy new tech and are typically in better condition.
2. You Can’t Have Two Title Loans on the Same Vehicle
Taking out a title loan when you already have debt depends on the type of debt. Taking out a title loan when you already have a title loan isn't possible. You would usually need to pay off the existing title loan before you can take a different loan.
3. You May Still Qualify with Other Debt
If you want to take out a title loan while you have other kinds of debt, this might be allowed but it would depend on the type of debt and it's up to you to figure out whether you can afford it.
That being said, since Delaware Title Loans, Inc. welcomes all credit scores, you might qualify for a title loan even if your credit score was lower due to existing debt. So, carefully consider whether your situation can benefit from this and speak to one of our representatives to learn more.
When a Title Loan Can Help
Title loans can, theoretically, be used for anything you wish. However, we highly recommend saving them for emergencies. After all, there isn't any point in paying off something you never truly needed in the first place.
Our customers tend to use our car title loans in Delaware for crises such as:
- Medical bills that are higher than expected or completely unforeseen.
- Overdue bills that will incur penalties if you don't pay them.
- Bills that are higher than expected.
- Urgent travel costs.
- Required home repairs
How to Tell If a Title Loan Is the Right Move
Let’s discuss how to tell whether a title loan is necessary for you. To figure out whether your situation truly needs a title loan to be handled, ask yourself the following questions:
- Will the problem get worse if you don't deal with it straight away?
- Can you get cash together quickly enough through some other means?
If the situation won't worsen if you leave it for a week, a title loan might not be the best way forward. However, if you need to pay off something straight away, then a title loan is an option you could consider.
How to Apply for a Title Loan in Delaware
Now you know how do title loans work, it's time to look at how you can go about getting one from us at Delaware Title Loans, Inc.
Follow these steps:
- Fill out the online inquiry form. It sends your information directly to your local Delaware Title Loans, Inc. branch.
- After you've filled in the form, one of our loan representatives will call you to discuss the process, the documents you need to provide, and answer your questions. They will also schedule an appointment with you at one of our stores or at a location of your choice.
- Following the call, get ready with your driver's license (or another kind of state-issued photo identification), your vehicle, and your lien-free vehicle title. Then meet our loan representative for your scheduled appointment.
- The loan representative will review your documents and inspect your vehicle to determine if you qualify and decide how much you can borrow.
- If you qualify, the loan representative will walk you through the final documents, asking for your signature wherever needed.
- Finally, you will receive the amount you qualify for on the same day or the following business day and leave with your vehicle.
Qualifying For Title Loans Today
Now that you know how do title loans work if you already have debt, you know whether you’re capable of acquiring one or not.
If you’re going through an emergency and you need money on short notice, get in touch with us today through the online form or by calling 1-800-514-2274 to learn more about your options.
Need emergency cash? Apply now or call us at 1-800-514-2274 to learn more!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
