Car title loans allow you to use your vehicle’s title as collateral, meaning you’re borrowing against the value of your car. A lien is placed on the title, which is removed once the loan is fully repaid. Understanding this process is crucial to avoiding mistakes that could lead to a denial.

How Do Title Loans Work?

Title loans use your vehicle’s title as collateral, meaning you’re borrowing against the value of your car. A lien is placed on the title, which is removed once the loan is fully repaid. Understanding this process is crucial in avoiding mistakes that could lead to a denial.

Top Mistakes That Can Lead to Car Title Loan Denials

1. Liens on Your Title

One of the primary reasons for denial is having an existing lien on your car title. A lien indicates a legal claim on the vehicle by another party, which could be a dealership, lender, or even the government. If your title has a lien, it means the vehicle is not fully yours to use as collateral.

Solution: Check your title status before applying. If a lien exists, contact the lienholder to settle the debt and obtain a lien release. For paper titles, submit the release form and apply for a new, lien-free title at your local DMV. For electronic titles, the lien can typically be removed digitally, but a DMV visit may still be required.

2. Insufficient Identification

Providing inadequate ID is another common issue. Fast Auto Loans Inc. requires a government-issued ID with your full name, photo, and age to verify your identity and legal eligibility for the loan.

Solution: Ensure your ID is current, valid, and government-issued. Acceptable forms include a driver’s license or state-issued ID card. Library cards or other non-governmental IDs are not acceptable.

3. Mismatch Between Car and Title

Your car must match the details on the title. Discrepancies can lead to suspicion and denial, as they suggest you might not own the vehicle.

Solution: Verify that the vehicle's details, including the make, model, and VIN, match the information on the title. If there are any errors, correct them before applying.

Steps to Ensure a Smooth Car Title Loan Application

Now that you know what you need to avoid getting automatically denied, you can move onto learning the title loan process. As we said in the beginning, the process is quick and simple to get through as long as you make sure you are well prepared. To help you get ready, we’ve broken down our process in simple steps so nothing will take you by surprise when you come here. Here’s our simple process for a car title loan:

1. Submit the online request form from our Homepage and wait for a representative to phone you back.
2. On the phone, schedule a meeting at a place you choose or visit one of our nearby offices.
3. Bring your above-mentioned required items to the meeting, and, after a quick inspection, you’ll know if you’re approved.
4. If approved, you might be able to arrange to leave with your car and have the money later that same day. If not, you will get it the next bank business day.

Remember, if you haven’t finished paying off your car, then a car registration loan, which uses your registration instead of title for collateral, is also an option. With this option, we won’t have to inspect your vehicle, but we will definitely run your credit and you have to come to one of our loan stores to complete the process – we won’t meet you elsewhere for this loan. But, just like with a title loan, if you are approved, you could get the money either on the same day or the next.

Ready to Apply? Start Today!

By following these guidelines, you can improve your chances of getting approved for a car title loan with Fast Auto Loans Inc. If you’re ready to proceed, fill out the online request form or contact one of our representatives. Don’t let common mistakes stand in the way of securing the funds you need.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.