How A Title Loan Works In Utah For First Time Borrowers
October 27, 2021 | Emma Frost
If you’ve never had to take out a loan before, you may not know how a title loan works. So, understandably, you may be approaching your first title loan with a bit of worry or concern.
This is perfectly normal, but the reality is that you don’t need to be concerned. Figuring out how a title loan works is much easier than any other loan. This is because title loans are a simple, accessible, and quick type of loan.
Here’s what you need to keep in mind as a first-time borrower.
What You Need To Successfully Acquire A Utah Title Loan
1. You Need To Be Able To Prove You’re Legally An Adult
While there are certain misconceptions about title loans Utah being unregulated due to their overall accessibility. In reality, learning how a title loan works will reveal that it’s very strictly regulated.
One of the biggest regulations is that no certified lender is allowed to work with a minor. Not only must you be over 18 to be eligible for a title loan, but you must provide a valid state-issued ID (a driver’s license, for example) to verify your identity and legal age. Otherwise, you’ll be disqualified from the get-go.
2. You Need To Outright Own Your Vehicle
Title loans are specifically designed for people who own their cars, no buts. The title of your vehicle needs to be:
- Completely lien-free – with no outstanding loans and/or judgments against it.
- In your name – you won’t be able to use the vehicle for the loan if the title is in another person’s name, even if you’re the de-facto owner of the car and have their written permission. The good news is you can transfer the title to your name at the DMV rather easily.
3. You DON'T Have To Worry About Your Credit
The way how a title loan works allows lenders such as Utah Title Loans, Inc. to welcome all types of credit histories.
This is because title loans are secured loans – you’re putting up collateral (your vehicle title) to ensure the lenders' assets are protected until the loan is repaid in full. This allows Utah Title Loans, Inc. to welcome you whether your credit is perfect, good, or bad.
While there may be a quick credit check, in the end, the chances of getting qualified aren’t affected much by your credit score as long as the required items you’ve provided manage to satisfy the requirements.
On top of that, your loan won’t get reported to any credit agencies and will not impact your credit in any way.
4. You Aren’t Likely To Be Asked To Provide Proof Of Income
Another flexibility the title loan’s secured status allows is the freedom to choose which method you will use to repay the loan at any given moment.
You are not required to provide either a pay stub or alternative proof of income to qualify for the loan. The sources of the money you use to repay the loan are completely up to you.
5. It Takes Less Than A Day To Qualify For A Title Loan
The main benefits Utah online title loans offer potential borrowers are accessibility and simplicity. Thanks to how a title loan works, there’s simply no place for all the extra bureaucracy that often accompanies the process of getting a bank loan or a traditional loan.
The process is broken down into straightforward elements – get started, have your documents and car inspected, do the final paperwork if approved – and is designed to accommodate busy clients who don’t want to spend extra time waiting either for approval or the money itself.
Unlike banks, the entire process of getting a title loan should be done in less than a day. Also, unlike the bank, there’s no waiting period before getting your money – you should get it the very same day you start your process or the following business day.
What Exactly Is The Process Of Getting A Title Loan?
Once you’ve made sure you’ve got everything required for a title loan (your government-issued ID/driver’s license, your vehicle, and its lien-free title in your name, you can get started.
And you can easily do so from the comfort of your couch by submitting an online form for Utah title loans. The form will digitally send your information to your local branch and as soon as it gets processed, you’ll get a call from our loan representative.
The representative will provide further information, answer any questions you may have, and arrange a meeting with you at a location of your choice. Take the required items to the meeting so they can assess everything and determine if you qualify for the loan. If they approve you, you’ll get your money the same day or the following business day.
Get Your First Title Loan Today
Now that you know how a title loan works, you can go ahead and get started from home! With our simplified and comfortable process, you could qualify for up to $15,000 before the day is done.