Need Cash Now? Don't Let These Three Issues Disqualify Your Title Loan
Title loans have a well-deserved reputation of being a quick, reliable source of cash for individuals who need extra cash. The loan process usually takes less than an hour, and you can receive your cash the same day that you apply for your loan. However, there are a few situations where you may find that you cannot procure approval for your title loan. Understand why your title loan might be disqualified and what you can do to fix the situation.
Problem 1: You Have Another Lien Against Your Vehicle
One of the few requirements to take out a title loan is that you must own your vehicle free and clear. This means that you cannot have any other loans that use your vehicle as collateral, including other title loans or auto loans used to finance the purchase of the vehicle.
Some individuals mistakenly believe that because they owe less than the vehicle is worth that they can use this equity to secure a title loan. While there are some products that permit you to tap your vehicle's equity without having to pay off any existing liens, a title loan is not one of them.
Problem 2: You Aren't the Sole Owner of Your Vehicle
If you have someone else's name on the title of your vehicle as a co-owner, this individual needs to come with you to apply for the title loan (or be prepared to supply their information if you start the process online). Unfortunately, a title loan cannot be issued unless all of the vehicle's owners agree to the terms of the loan.
Some people driver vehicles that are titled to another individual entirely, such as a parent or partner. Should you find yourself in this situation, the individual on the vehicle's title must apply for the loan. They can then give you the proceeds, and you can repay the individual or the lender to retire the loan.
Problem 3: You Can't Verify Your Identity
Title loans require minimal documentation, but one piece of information that you must have is a valid photo ID. If your ID is expired or if you have accidentally misplaced your identification, this will interfere with your loan. The lender must have solid proof that you are the individual on the car's title.
Remember, your photo ID does not have be in the form of a driver's license. Identification can come in multiple forms, such as a state ID card, passport, permanent resident card, or military ID.
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