Explaining Title Loans: Your Roadmap To Financial Clarity
In today’s economic environment, where inflation affects your ability to afford daily costs, it’s essential to have an economic roadmap to help achieve financial clarity. However, financial emergencies can threaten your short and long-term financial outlook.
In this guide from Utah Title Loans, Inc., we will explain how title loans work and how they can help you when faced with a financial emergency. Discover our simple approval process below and learn how to access emergency cash within one business day!
How Title Loans Work
A title loan is a short-term loan that uses your vehicle’s title as collateral. You can only pursue this collateral loan if you have fully paid off your vehicle and own it outright. Additionally, only cars, trucks, and vans are accepted; motorcycles, trailers, and boats are not.
This borrowing option lets you get extra cash quickly, usually on the same or next business day. The exact amount you qualify for depends on your car's value and condition. An in-person inspection by a professional verification agent will determine this. In many cases, lenders are willing to offer up to 50% of the vehicle’s market value.
When you get a title loan, the lender places a lien on your vehicle title. They will then lend you the money and clear the loan once you have fully repaid what you owe.
4 Main Things You Need To Know About Title Loans
Now that you know how title loans work, there are other key details you must understand before borrowing. Knowing this information can help you determine if you can get qualified and whether this is the right borrowing option for you. Remember, the point of this loan is to get back on track with your roadmap to financial clarity, so only borrow money if you feel it can help with that.
Here are four essential details about car title loans:
1. You Must Have A Clear Title
The most important thing to know is that only those with a lien-free title can qualify for a title loan.
If you haven’t fully paid off your car, you can't use the title as collateral. Keep in mind that “lien-free” also means the vehicle must be free of any legal claims.
2. The Title Has To Be In Your Name
If the document does not have your name on it, you won’t be approved. If you've just finished making payments on your vehicle, you'll need to keep in mind that the title must be transferred at your local DMV. Unfortunately, this process can take some time; in some cases, you might receive the new title within a few weeks.
Naturally, you should begin the application process for a loan only after you receive the document with your name on it. By the way, the car doesn’t necessarily have to have only one owner. There may be other names listed on the title as well; just make sure yours is one of them.
When dealing with other owners, you might need to get someone else's permission to use the title as collateral if there is an ‘and’ between your names. If the conjunction used is ‘or’, you usually wouldn’t need to formally ask the other person.
3. All Credit Types Are Accepted
In many situations, a lender needs to review your credit history to determine your creditworthiness. Today, many potential borrowers find it difficult to qualify, even with above-average scores. This adds extra stress and can easily scare people away from trustworthy lenders. After several denials, those facing financial difficulties might turn to scammers who promise large sums of money to anyone.
Luckily, not all legitimate options are as daunting. To qualify for a title loan, for instance, you don’t need a perfect credit score. In fact, you might get approved even with a poor or nonexistent score. This is possible because a title loan is a secured loan. Your credit history is not the main factor - the title serves as collateral, ensuring the loan will be repaid.
4. You’ll Get To Keep Your Vehicle
Contrary to popular belief, you don’t need to hand over your car to the lender when getting a title loan. The title is used to secure the loan, and the lender will hold onto it until you repay.
No need to worry about having to fully change your routine – you’ll get to continue using your car as you normally would. As long as you make your repayments, you will not be in danger of losing your vehicle.
How To Achieve Financial Clarity With Title Loans
Even if you've established a solid monthly budget, managing emergency expenses can still be challenging. Completely depleting your savings or using money set aside for rent or groceries to cover a surprise bill can be very disheartening.
When an emergency threatens your financial plan, you might feel insecure and uncertain about your future. With a title loan, you could avoid that. This borrowing option lets you quickly access emergency cash without disrupting your financial plan. Just get the extra cash, pay the urgent bill, and include loan payments in your monthly budget.
What Do You Need To Get Approved For Title Loans In Utah?
If you decide to choose title loans to help with your financial emergency, you will need to have a few items to get approved. Thankfully, these items should be easy to locate; most vehicle owners should have them easily accessible.
Here are the required items for title loans in Utah:
- A state-issued photo ID that displays your full name and age
- A lien-free vehicle title in your name
- Your vehicle for a quick inspection
Once you make sure you have these items ready, you can begin the process online before getting approved in person.
A Step-By-Step Guide To Taking Out A Utah Title Loan
You will be pleasantly surprised to discover how easy it is to get an emergency cash boost with us. Our approval process only has a few easy steps that you can complete today. After starting the process online, you can visit us in person to complete the process in less than 30 minutes.
Here is the approval process for getting a title loan in Utah:
- Let us know that you’re interested by completing an online inquiry form. Provide your name, email address, phone number, zip code, and vehicle details (year, make, and model).
- Pick up the phone when our friendly representative calls you to discuss the title loan process, requirements, loan amounts, etc. Ask any questions you have about how title loans work.
- Gather the required items and meet up with the professional at our nearest Utah store location. The agent may need only 30 minutes to inspect your car, verify your requirements, determine the loan amount, and prepare the final paperwork.
- Sign the documents to complete the process. Receive your emergency cash later that day or by the next business day.
Get A Title Loan In Utah – Borrow Up To $15,000 Today!
Though everyone knows that financial emergencies are temporary, they can still catch you off guard. We at Utah Title Loans Inc have got you covered! With us, you can qualify for a title loan in just half an hour and receive up to $15,000 to cover your urgent expenses. No need to add more stress to your life – we will ensure the process is as smooth and simple as possible.
To get started, fill out our online title loan form, and you might receive the money the very same day!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.