How to Get a Title Loan with a Cosigned Car


How to Get a Title Loan With a Cosigned Car

title loan with a cosigned car

Individuals will often use a cosigner when buying a new car. This is common when teens are buying their first cars, when young adults are trying to establish credit and even when spouses purchase cars together. Adding a co-signer on a car loan sounds like a good idea at first glance, and this is because you can use the co-signer’s credit rating and income to help you qualify for your loan. However, once the cosigner is on the loan, they become a partial owner of the vehicle. This can affect your ability to later qualify for a car title loan. Car title loans are designed to give individuals in financial need an affordable, convenient source of cash without delay. These unique loans use equity in your vehicle as collateral, and they typically have easy qualifications and a short loan term. Anyone who is currently on title to the car will need to be on the loan. With this in mind, you may be wondering what your car title loan options are and how to get a title loan with a cosigned title.

Can You Get a Title Loan With a Cosigner on Your Car?

The good news is that you can get a title loan with cosigned car. There are a few primary options available to consider. For example, changing name on car registration and removing the cosigner from the title before you apply for a title loan is one option available to you. Another option is to take out a car title loan with the cosigner. When you explore these two options in greater detail, you will learn how to get a title loan with a cosigned car with ease.

Understanding Cosigner Rights

Before you examine the options for getting a title loan with cosigned car, you must first understand cosigner rights. So what rights do co signers have, and does a cosigner own the car? You may have used most or all of your own personals funds to purchase the car, and the cosigner may have only been in place for loan qualification purposes. Because of this, you may feel as though the vehicle is rightfully yours to do with as you wish. However, the cosigner is a legal owner to the car with the same equal rights that you have. You cannot take out a loan on the vehicle without the cosigner being involved in some way. The cosigner has the right to transfer ownership entirely to you and to sign over his or her rights. He or she also has the right to remain on title and to prevent you from obtaining a title loan at all. Just the same, if he or she does sign on the car title loan, he or she can be held fully financially responsible for the borrowed funds if you default on the payment.

Can a Cosigner Be Removed From a Car Lease or Loan?

When you need to access equity in your vehicle and are examining how to get a title loan with a cosigned vehicle, the option to remove the cosigner from the title sounds like a great plan to move forward with. However, first you have to focus your attention on the matter of existing liens on the car, if any. Your current lender typically will not allow you to simply remove an individual from an existing loan even with the best excuse. The lender qualified the loan or lease with both individuals, and it will expect both individuals to be equally responsible for the loan. Therefore, you may need to fully pay off the loan before you can transfer title to your name only.

How to Remove a Cosigner From Title

As mentioned, the first step to take to remove a cosigner from title is to pay off any existing liens, but this is not the only step to follow. Then, you can file the form to transfer title into your name through your county clerk’s office. This is a fast and easy process that is completed most quickly in person. However, remember that the cosigner must be agreeable to changing name on car registration as well. He or she will need to sign the title release document. It may take a few days for the title transfer to be processed. Plan to wait the appropriate time period before filling out an application for a car title loan.

Can You Add a Cosigner to Your Title Loan?

While some vehicle owners want to remove a cosigner from ownership of the vehicle to obtain a car title loan, others may want to add a cosigner to the loan. To accomplish this goal, you typically need to add the individual to the registration as a first step. This change in ownership can be completed at the county clerk’s office as well. By adding a cosigner to title, the individual will become responsible for any loans you take out on the car in the future. This means that he or she will need to apply for the loan jointly with you.

Tips to Follow When Using a Cosigner on a Title Loan

Using a title loan with cosigned car may sound like a winning idea when you need access to extra cash quickly. However, when you take out equity from a car and when you sign loan documents with a friend or family member, a lot can go wrong. These tips can help you to achieve the best results when making financial decisions with a close friend or relative.

First, ensure that the cosigner knows that he or she is financially responsible for any debt on the car. Also, ask the cosigner about his or her ability to repay the funds in the event you cannot make the payments. You need to ensure that the loan balance can be repaid in a worst-case situation. The individual should be brought up to speed on your plans for the use of funds and your ability to repay the funds.

Second, be cautious about the impact this can have on your relationship. People take finances and credit ratings seriously. If you are unable to pay back the loan, the other individual may be forced to pay, or both of your scores plummet. Make a solid effort to pay the debt back on time so that your relationship with the other person is not negatively impacted.

Third, adding or removing a person on the title of the car loan can change your qualification factors for a new loan. Always review the other person’s financial strength carefully before making a move. Ideally, adding or removing someone from title should improve the strength of your loan request overall, but this is not always the case.

It is important to have a candid conversation with your cosigner about the state of your finances before you make any financial decisions regarding the vehicle. The individual may currently be held liable for the current loan or lease payments as well as future debts taken out on the car, so his or her finances are impacted by yours. Together, you both can work out a feasible solution to get you through this rough patch without putting the car or your financial ratings in jeopardy.

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This is a solicitation for a loan. This is not a guaranteed offer and requires a complete and approved application. Title-secured loan amounts are subject to vehicle evaluation. Results and actual amounts may vary. Certain limitations may apply.

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This is a solicitation for a loan. This is not a guaranteed offer and requires a complete and approved application. Personal loan amounts are subject to consumer report data evaluation. Results and actual amounts may vary. Certain limitations may apply.

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