How to Find Out If There Is a Loan on My Title

If you purchase a car from another private party it involves an immense amount of trust. You trust that the car is in acceptable working condition and not a "lemon." But you also trust that the car title you received from the previous owner is free and clear of any bank or title loans. Also, when you finally pay off your own car loan, you may want to verify that the department of motor vehicles has officially removed the bank's claim on the vehicle. Luckily, it is usually simple to figure out this information.

Instructions

1

Review the title document thoroughly and check under "Lienholder" or the similarly named section of the title. If you see a bank listed under this section that indicates that a loan, or lien, is still associated with the car ownership. If not, you can still proceed with additional checks if you wish to verify that the title is free and clear of loans.

2

Write down the vehicle identification number for the car as well as the make, model and year --- all of which are commonly printed on the title. Determine the state where the car is currently registered as well.

3

Call the state department of motor vehicles where the car is registered and provide it with the vehicle information you've retrieved from the title. Request current information about the car's lien history to see if a bank is currently associated with the car. You may have to pay for a full vehicle history report. You can also retrieve this information from a third-party paid car history reporting service as an alternative option.