What To Know Before You Get A Title Loan In West Valley City, UT
If it's your first time applying for a title loan in West Valley City, UT, you probably have a lot of questions. After all, there are many different things to consider when it comes to title loans, and if it's your first time, navigating through the process and the terminology can be a big hassle.
Well, worry no more: today, we're going to tell you everything you need to know before getting your loan.
Things To Know Before Getting A West Valley City Title Loan
Title Loans Are Secured Loans
There are two types of loans: secured and unsecured. The difference between the two is simply that an unsecured loan does not require any collateral from the borrower, whereas a secured loan does. Collateral is a sort of compensation guarantee that a borrower offers in exchange for the money they are borrowing.
If you don't pay back the loan, you forfeit the collateral that you put up to get the loan in the first place. As for what that collateral is in the case of a West Valley City title loan, well...
With A Title Loan, You Offer Your Car As Collateral
If you legally own a vehicle, you have a title to it. It's an official piece of paper that denotes you as the legal owner, and it's also what you offer up as collateral to apply for a title loan in West Valley City UT. As mentioned previously, the collateral is a form of insurance for the lender: if you don't pay back your loan, you forfeit the car to the lender.
That may sound a little scary, but as long as you make your payments on time and don't completely fail to meet your loan obligations, you aren't going to lose your vehicle. But your vehicle has another role to play when it comes to a title loan in West Valley City, UT as well.
Your Car Determines How Much Money You Get In A Title Loan
Because your car is the collateral for a title loan in West Valley City, UT, it determines how much money you can actually borrow with that title loan. After all, if a lender gives you more money than your car is worth, then getting your car if they don't get their money back is not a very good move on their part.
This is pretty simple overall, thankfully. Simply put, the newer and better maintained your vehicle is, the more it is worth, and by extension, the more money you will be able to receive from a West Valley City title loan when you put that car up as collateral.
It's a lot like trying to sell a car to anyone, really. A car has more value when it is newer and in better shape. The condition of the vehicle is judged by a lender, and they determine how much you should get in the loan based on that assessment.
Finally, there is one other bit of good news involving all of this...
You Don't Need Good Credit To Be Approved
Most people assume you must have good credit in order to be approved for a loan of any kind, but this is not necessarily the case. Credit is very important when you are getting an unsecured loan because a lender gets no collateral, and this has no safety net in case a borrower doesn't pay them back.
But a title loan in West Valley City, UT is a secured loan with collateral, so the lender does have some form of insurance. This means they aren't at risk of using a bunch of money even if they lend it to someone with bad credit. This makes title loans an excellent option if you don't have very good credit!
Getting A Title Loan With Utah Title Loans
If you believe that a title loan is a good call for your situation, we here at Utah Title Loans are ready to help you. We have a quick and efficient application and approval process that ensures you get the money you need without hassle or delay.
Simply submit an online inquiry form here on our website, and a loan representative will contact you as soon as they are able. They will discuss a time and place to meet with you. You will need to bring your state-issued ID, car, and lien-free (no outstanding loans against it) car title to that meeting.
The representative will verify all of your documents and inspect your vehicle, to determine not only whether or not you qualify, but how much you qualify for if you do. If you're approved, you will be able to get your money that day, or within one business day thereafter.
Get Started Today
Now you are well informed about everything a West Valley City title loan entails. You know enough to make an informed decision about whether it is the right move for you. And if you decide to go for it, you know who to call. We’ve made it as painless and simple as it can be, so if you're short on cash and need a little help, reach out to us at Utah Title Loans, Inc.!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.