Do This To Avoid Getting Denied For A Car Title Loan
Getting denied for a car title loan or car registration loan can be extremely frustrating. The beneficial thing is there are ways you can avoid being denied upfront for one of our loans at Fast Auto Loans Inc. when you really need quick money. There are a number of steps you can take to make sure you don’t get denied automatically for a car title loan, and we’ll help you identify the most important ones so that when you need emergency cash, you actually stand a good chance of getting it.
How Do Title Loans Work?
In order to understand why you might be denied, it’s worth first understanding how title loans work in the first place. Title loans use your car’s title as collateral for the loan, essentially meaning that you’re borrowing against your car title, money you will eventually pay back. This means we will place a lien on your title and hold onto it until you fully pay the loan back. Once you are done with your repayments, we will promptly remove the lien and safely return your title.
Avoid These Three Mistakes To Not Get Automatically Denied
When it comes to our process, we’ve made sure to make it simple and quick for you to get through. However, just like with any loans, there are mistakes you can make or things you can forget to check that will result in an automatic denial. While approval is never guaranteed, we still recommend you avoid these mistakes to make sure the process doesn’t stop abruptly. Here are the things you should avoid:
- Your car title has a lien on it.
- You provided insufficient ID.
- Your car does not match the provided title.
1. Liens On Your Title
The first mistake you definitely want to avoid when you need a car title loan is that your title already has a lien on it. A lien is a legal claim of ownership of an asset until the debtor repays what they owe. These may be issued by dealerships, tow services, or the government. In any case, they render your loan application null and void for one simple reason: the car technically belongs to someone else.
See, when a lien is placed against an asset, it defers to the lienholder unless the person who owes the lienholder money can pay what they owe. We use liens to ensure that you as the borrower are incentivized to repay what you owe. If there’s already a lien on your title, then you as a borrower have no standing to borrow against it and no incentive to pay off your loan. To avoid this mistake, check your vehicle’s title before you come in, whether paper or electronic.
If your title does have a lien on it, contact the lienholder to find out what you owe and then pay it duly. With a paper title, you will need to take the lien release forms, submit an application for a duplicate title, and pay the appropriate fees at your local DMV office to receive a new lien-free title. With an electronic title, they can remove it on the computer. You will still have to go to the DMV either way.
2. Insufficient ID
The next thing that can lead to automatic denial is an insufficient ID. We need your ID to prove that you are who you say you are and that you aren’t a minor trying to get a loan. That means we need to see your driver’s license or another form of official ID. The bottom line is that it must be government-issued and have your photo on it. If you apply using a library card, for example, then your application will be denied. Make sure your ID shows your full name, photo, and age.
3. Your Car Doesn’t Match The Title
The last thing that could lead to automatic denial is that your car, truck, or SUV doesn’t match the title. Your title shows ownership of your vehicle. This means that if your vehicle does not match the title, it looks suspicious and like you are trying to make a car you don’t actually own, look like you do. We also need to see the car detailed in the title because that is what helps us determine how much we can lend you – if you are approved, of course.
How You Can Get Started
Now that you know what you need to avoid getting automatically denied, you can move onto learning the actual 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:
- Submit the request form online and wait for a representative to phone you back.
- On the phone, schedule a meeting at a place you choose or visit one of our nearby offices.
- Bring your above-mentioned required items to the meeting, and, after a quick inspection, you’ll know if you’re approved.
- 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 Find Out If You Qualify For Approval? Start Today!
When you need help with emergency expenses, we here at Fast Auto Loans, Inc. offer our customers straightforward approval guidelines for our title loans. And with the help of this guide, you now know exactly what you need to do to avoid any mistakes that could automatically disqualify you. And if you can’t get a title loan, you can go for a registration loan instead! So, if you’re ready to apply, just fill out the request form or give one of our helpful agents a call!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.