Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Feb 8, 2021

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Borrowers can get an auto title loan even if they are behind on car payments. However, this is not a very wise financial decision.

If borrowers are already behind on car payments then it means they are in a dire financial situation (or disastrously forgetful).

Eric Counts, President of CreditNerds, told loans.org that if a borrower is behind on car payments it means that “either you are having money difficulties and are unable to keep up with the payments, or you are financially irresponsible.”

Instead of getting an auto title loan, borrowers should try to budget and make up the tardy payments on their car loan. While borrowing an auto title loan may seem like a quick fix to a difficult financial situation, these types of financing carry high-interest rates that can make repayment expensive.

Counts explained that in the wake of the recession and ongoing difficulties, some lenders can be accommodating to car loan borrowers who are having difficulty making payments.

“If you are just having trouble making the payment, the lender may work with you on getting you into a lower payment,” he said.

Assuming borrowers still want an auto title loan when they are behind on car payments, they will have to prove to their lender that they are capable of repaying the loan. This typically means that borrowers must be employed or have sufficient income to pay off the auto title loan. Borrowers who are behind on car loan payments due to unemployment or reduced income will most likely not qualify for an auto title loan.

Additionally, borrowers have to keep in mind that some car title loan lenders will be very cautious and apprehensive about lending to someone who is behind on other debt payments, regardless of a borrower’s reasons

However, if applicants can show auto title loan lenders that they are capable of repaying a car title loan, they will likely qualify and receive financing appropriate to their vehicle’s value.

(Interview with Mr. Counts conducted by Isaac Juarez)