Can You Get A Title Loan In Utah With Bad Credit?
When you’ve got bad credit, getting a loan can be challenging, especially with traditional lenders who require good credit above 700 just to get approved. Applying constantly for loans, with hard credit inquiries, will push your credit score down further, even if you’re not approved. This can lead you to believe there are no options available to you, prompting you to seek alternative borrowing options.
One option may be a Utah title loan, borrowing secured against the value of your vehicle. While these loans are much shorter-term than traditional borrowing, they can be an ideal way to secure emergency financing. In this guide from Utah Title Loans, Inc., learn how to get approved for a title loan for bad credit today!
Understanding How Title Loans Work In Utah
Before applying, it’s important to understand how title loans work in Utah, even for borrowers with bad credit. A title loan is a type of ‘secured’ loan that uses your vehicle’s title as collateral. The amount you can borrow is generally based on the value of your vehicle. At Utah Title Loans, Inc., our title loans range from $300 to $15,000.
You must own your vehicle outright to get approved, as we will have to place a lien on your title. We can only do that if your vehicle title is lien-free, which means you must pay any outstanding liens, debts, or judgments first.
After placing a lien on your title, we will keep it, and you will receive your emergency cash. You can then pay your emergency expense and repay the loan. After fully paying off what you owe, we will clear the lien and return your car title. You can complete this process even if you have bad credit.
Do You Need Good Credit For A Utah Title Loan?
Unlike traditional banks, title loan lenders place much less emphasis on your credit score. Instead, they focus on the value of your vehicle and your ability to repay what you borrow. The lender looks at your current financial situation, rather than your past financial history.
While some lenders may conduct a few basic checks, the primary focus is always on your ability to afford loan repayments. They are also secured because you provide your car title as collateral, so they have something to recover value if you fail to make your repayments.
In short, when you’re looking for a title loan in Utah, don’t worry too much about your credit score. It won’t be a major decision factor like it would with a traditional bank loan.
What Lenders Look At Instead Of Credit Scores For Car Title Loans
When making a lending decision, title loan lenders will focus on two main factors rather than your credit score.
The process starts with reviewing the vehicle’s title. It must be in the borrower's name and free of liens, meaning no other party has a financial claim on it. For instance, vehicles bought through financing typically have a lien held by the lender until the loan is repaid. If the title shows any lien, a title loan cannot be approved.
Secondly, the lender will need to assess the vehicle's value. The value will be determined using industry-recognized price guides. The lender will take into account the vehicle’s model, age, mileage, and overall condition to determine how much can be borrowed.
Does Taking Out A Title Loan Hurt Your Credit?
You can borrow a title loan with bad credit without worrying about lowering your credit score. At Utah Title Loans, Inc., we do not conduct hard credit inquiries like traditional banking institutions do. The credit checks will lower your credit score, and you’re not even guaranteed to get approved.
You won't have to worry about that with us, since your credit score is less essential than your ability to repay the loan and vehicle value. We also do not report our title loans to the three major credit bureaus (Experian, Equifax, and TransUnion), so you can borrow money without adding debt that can reduce your credit score.
No matter what your credit situation is, you can borrow title loans for emergency expenses. Read on below to learn what you need to get approved.
What Are The Requirements For Title Loans In Utah?
At Utah Title Loans, Inc., we only require a few items to get approved for a title loan. You will need to prove you’re at least 18 years old, along with your vehicle value and full car ownership. To prove you meet these requirements, you will only need three items, which you should have already.
Here are the required items for a title loan in Utah:
- A driver’s license or state-issued photo ID that displays your full name and date of birth
- A lien-free vehicle title in your name
- Your vehicle for a quick inspection
Having the car title in your name is essential, as you cannot use someone else’s car title to get a title loan. If your car title is still in a previous owner’s name, you must get a title transfer first. Once you have all of the required items, you can apply online before getting approved at one of our Utah branches.
How To Get Approved For A Title Loan In Utah
You’ll be pleased to know that the process is much easier than a traditional bank loan. We can often wrap up the process in under a few hours, with cash available as soon as the same or the following day. You can get approved in person in less than 30 minutes and get quick access to cash by following our simple approval process.
Here is how to get approved for a title loan in Utah:
- Fill out our online form – Begin the process online with our simple request form. It will take just a few moments to provide your basic information. You will need to provide your name, zip code, email address, phone number, and vehicle details.
- Speak to us on the phone – After submitting your online form, a loan representative from a store near you will receive and review it. They will then call you to explain how title loans work in Utah and answer any questions you have. To finish the conversation, they will set up an in-person meeting at the nearest Utah store location.
- Get qualified in person – Bring your required items to the agreed-upon location. Once there, we will verify that you have the required items and that your information matches across your documents. We will also inspect your car to determine what your title loan is worth. This whole process takes less than 30 minutes.
- Sign the loan agreement – The loan rep will now explain what your title loan is worth and answer any final questions. If you agree to the loan amount, you can sign the loan agreement to finish the process. You will receive your title loan cash later that day (if you completed the process earlier in the day) or by the next business day.
Get A Title Loan For Bad Credit – Borrow Up To $15,000 Today!
Even if you have bad credit, Utah title loans can still be an option. This is because we at Utah Title Loans, Inc. consider much more than your past credit history. Title loans consider the value of your vehicle, with the loan secured against the title of your vehicle. This means that even if you’ve been rejected for a traditional bank loan, a title loan may still be an option.
Need quick cash for an emergency expense today? Contact us by filling out our online title loan form. You can then visit us in person to get qualified in less than 30 minutes. Get a bad credit title loan today for your emergency financing needs!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.