If you’ve heard the term "lien-free title" while exploring car loans, you might be wondering what it means. Understanding this term is important if you’re thinking about getting a loan using your car’s title. Title loans can help you afford urgent expenses, but you can only get approved with a lien-free car title.

In this guide from Fast Auto Loans, Inc., we will provide the lien-free car title meaning and explain how you can check if you have one. We will also go over how to get title loans using lien-free titles to borrow emergency cash today.

What Is A Title Loan?

Since the COVID-19 pandemic, inflation has hit the country and led to prices increasing dramatically. According to the Pew Research Center, fuel oil prices increased by 90%, gasoline by 89.5%, and eggs by 94%. Increased inflation has led to prices of everyday prices skyrocketing, making it harder for people to afford everyday costs.

This is why title loans have become more popular since 2020. Title loans are a type of secured loan that allows you to use your vehicle’s title as collateral. To qualify for a title loan, having a lien-free title is required, as it proves your ownership and clears the way for lenders to place a lien temporarily while you repay the loan.

What Is The Lien-Free Car Title Meaning?

A lien-free title means you fully own your vehicle with no outstanding debts or claims from lenders. This clean ownership is crucial if you’re interested in a title loan, as it allows lenders to place a lien on the title temporarily in exchange for a cash loan, which you repay over time.

You can get title loans using lien-free titles because they are clear of all debts, letting you use them as collateral to borrow up to $15,000. Having a lien-free vehicle title basically means you have fully paid off the car and can use the title to secure car collateral loans.

Here are some of the reasons to have a lien-free car title:

• Ownership: A lien-free title shows you own the car outright. This means you have no outstanding loans or debts connected to it.
• Repayment: You don’t need to worry about paying off any remaining debts when you have a lien-free title. You can immediately use the vehicle title as collateral for a loan.
• Selling or Trading: A lien-free title lets you easily sell or trade your vehicle since there’s no claim on it.
• Borrowing Power: With a lien-free title, you can use your vehicle as collateral to access higher loan amounts quickly.

What Is The Purpose Of A Car Title?

Now that you understand the lien=free car title meaning, you need to know the purpose of the title. A car title is a legal document that denotes the official owner of a car. If you bought a car from anyone or any dealership, you should have also received a title for that car. It's a mandatory document, crucial for certain types of loans – especially if you plan to use it as collateral.

However, even if you drive a car, you may not have a title for it in your name. For instance, if you are still paying off a car you bought from a dealership, the title might officially be in the dealer's name, not yours. If you buy your car from an individual and they can’t – or won’t – give you the title, this is a big red flag that something is wrong, and you should immediately turn away from the deal.

How Do I Know If I Have A Lien-Free Car Title?

Your title is lien-free if there are no debts against it or you’ve just paid off the debts against it. If you are not paying any sort of debt related to your car, it's probably lien-free. This means that the car is not being used as collateral for any type of loan, nor are you still paying off the initial car loan.

It's essential to also remember that you must legally own the vehicle to get title loans using lien-free titles. Say, for instance, that a family member had a fully paid-off car with no debts against it. You could not put up that car title as collateral because you are not the car's legal owner. The legal owner would have to apply for the loan.

You must legally own the car, and the title must have no debts against it. Both of these must be true if you want to apply for a title loan. If your car title is not in your name, you can head to a local DMV office to get a car title transfer by filling out some forms and paying a small fee.

How To Remove A Lien From A Car Title

The most surefire way to remove a lien from a car title is to pay off the outstanding loan. If you are still paying off your initial car loan, you must pay it off fully if you are looking for how to remove a lien from a car title.

Once you have fully paid off your debt, judgment, or line, the lienholder will release the lien on the vehicle. They will provide you with a lien release document, which you can fill out and submit to your local DMV office. From there, your title will be lien-free, allowing you to get title loans.

How To Get Title Loans Using Lien-Free Titles

Now that you understand how to remove a lien from a car title, you can do so and get approved for a title loan. Thankfully, the process is simple and allows you to get fast cash for emergencies. Along with your lien-free vehicle title, the other required items you will need are your driver’s license or other state-issued photo ID and your vehicle for an inspection.

The approval process for getting title loans in Arizona is simple and requires only a few easy steps. You can easily start the process online with our quick contact form and get approved in person in less than 30 minutes.

The following is how to get title loans with lien-free titles:

• Fill out our online inquiry form with your basic details
• Answer a phone call from a loan associate to discuss getting a title loan
• Bring your requirements to the nearest Arizona store location
• Have a loan agent weigh your required items and inspect your vehicle for its value
• If approved, sign the paperwork to complete the approval process
• Receive your emergency funds the same day or the next business day

FAQs About Arizona Title Loans

How much can you borrow with title loans in Arizona?

We offer up to $15,000 for our title loans. However, that is the maximum amount, and not everyone will get approved for that much. Your title loan value will depend on what your car is worth, as determined by its condition, mileage, age, make, and model.

Can you get title loans for bad credit?

We allow borrowers with bad credit or no credit to get our title loans. That is because you use your lien-free car title as collateral, so the loan is secured in case you cannot repay it. We do not do credit checks and will not report our title loans, so you can borrow money without your credit going lower.

Are there risks associated with title loans?

Borrowers will have to pay their title loans with interest and could incur late fees for missed payments. You could also lose your car if you miss multiple months' worth of payments. Before borrowing, make sure you come up with a plan for repayment to avoid these risks.

Get Title Loans Using Lien-Free Titles – Borrow Up To $15,000 Today!

Getting car title loans in Arizona is easy with Fast Auto Loans, Inc. As long as you have a lien-free car title, you can apply online today and get approved the same day. The whole process takes less than a day, and you can receive your emergency cash in less than one business day to clear your financial emergency quickly.

Ready to get fast cash today for emergencies? Get title loans using lien-free titles by filling out our online form or calling us to discuss the process.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.