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What is a Title Loan with Liens and How It Can Help You?

In the United States, there are hundreds of title loan companies– which makes title loans (which are also known as payday loans) one of the most profitable business types in America. In the South, title loan companies are fairly prevalent, which means that those who live in the south have most likely seen a title loan company before. Therefore, they might be familiar with how the lending process works. However, there are different lending protocols for title loan companies, and obtaining a title loan with a lien is a different beast entirely Although it sounds like an extra step in an already complicated process, customers hoping to take out a title loan should consider taking out a title loan if they need it, even if their car does have a lien. It’s a great option for those who need cash quickly and might have issues getting it elsewhere.

What is a Title Loan With a Lien?

need a title loan

Applying for a title loan usually starts with a little paperwork and collateral in the form of your car’s title. Whereas traditional lending almost always requires you to run a credit check, obtaining a title loan usually just involves investigation into whether you are the rightful owner of your car. Because this process takes only an hour or two in most cases, people often obtain a title loan when they need cash the same or next day. Verifying that you own the car is usually enough proof that you can pay back the loan, and handing over the title to a car is the physical collateral that takes the place of credit history.

A lien is an indication that the car does not fully belong to you. Basically, it says that you are making payments toward full ownership of the car, but legally the car’s title still belongs to someone else. Most often this happens when a person purchases a new or used car from a dealership. Your name is still listed on the title, but the dealership or sales entity has property rights over it until the full amount is paid. Once the full amount is paid, the lien is released, and the car then belongs to you.

While many companies shy away from lending for a liened car, Midwest Title Loans believes that with the right understanding of how obtaining a title loan with a lien works, providing a loan for a car with a lien on it can be extremely beneficial.

The way lending with a lien works is this: You bring your car in to have it evaluated. Whether it is a new or old car, there is an overall value placed on your vehicle. If you owned the vehicle outright and were to apply for a title loan, you would receive a loan equivalent to the full value of the vehicle. Title loan companies like Midwest Title Loan who lend to car owners with liens on their cars still lend for the full amount but instead divide the full value of the car. Using part of the value to pay off the remainder of the debt and giving the rest to the customer, the lien is then transferred to the title loan provider, and you continue to make payments on the loan as you would have made on your car.

How Can a Title Loan With a Lien Help You?

If you’re wary, you’re not alone. It is a huge step to consolidate debt from one lender to another, and it can feel strange at first. But there are many reasons why you might want to take out a title loan even if you have a lien on your car. Here are some of the most common reasons we see from our satisfied customers.

It saves you from identity theft. Although you can apply online, most customers visit one of our locations to apply for a loan. Online credit card and loan applications require your social security number, making your identity an easy target for attack. While many criticize the interest rates of title loan providers, very few things are quite as harmful as identity theft caused by stolen social security numbers. Midwest Title Loan will never require your social security number for loan applications. Merely bring your title, and we’ll work with you to fill out the rest of your application.

It allows you to make last-minute purchases when you have few other financial options. With poor credit, it can be hard to find the last-minute financial help that you need to make big purchases or deal with unexpected bills. Title loan companies do not need access to your credit history because the collateral that they use is your car rather than your constructed credit history.

You can beat out the rates of your original loan. Let’s face it — most people with borrowed credit or loans have had a moment in their lives where they’ve regretted taking out a loan with that company. The biggest stressor? The interest rates. Title loan companies can take heat for their interest rates, but often their interest rates rival and even beat the original car lender. Sometimes, those who come to Midwest Title Loan find better repayment rates for their car, which means they not only get a temporary loan for the remainder of the car’s worth, but they also can make continued payments at a lower price.

It can help you get closer to full car ownership. When we purchase your title, we help you get one step closer to owning your car. Pay more than the expected amount or the total that we require — plans are relatively flexible in that manner. Either way, the shortened repayment period means you spend less time with a car that doesn’t actually belong to you.

Midwest Title Loans is your trusted stop for title loans with liens in Kansas and Missouri. Stop into one of our locations in Kansas City, Gladstone, or St. Joseph, Missouri or one of our Kansas locations in Overland Park or Kansas City. Or, visit our website for more information. One of our title loan specialists will be available to help you get the money you need regardless of your title or credit history.


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330 W. 85th Street
Kansas City, MO 64114
Phone: (816) 363-8600
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6420 North Oak Trfwy
Gladstone, MO 64118
Phone: (816) 436-7711
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8212 Metcalf Ave.
Overland Park, KS 66204
Phone: (913) 381-2222
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Sa: 9:00am – 2:00pm

2500 State Ave.
Kansas City, KS 66102
Phone: (913) 281-9997
M-F: 10:00am – 6:00pm
Sa: 9:00am – 2:00pm