There are some federal laws that apply to loan lenders across the board, which all states have to follow. Also some states have their own rules that lenders must follow, not affording lenders a lot of wiggle room. Then, there are states like Utah that are super laid-back in their rules for lenders.
What is a Title Loan?
An auto title loan is a personal loan that uses your vehicle’s title as collateral. When applying for an auto title loan, you will give the lender your vehicle’s title in in exchange of a loan. Once you are finished repaying the loan, you can receive your title back lien-free.
I Have Bad Credit, Can I Get a Title Loan?
Title loan lenders in Utah do not generally run your credit to determine whether or not you are eligible to receive a title loan from their company. Your approval is mostly based on your current ability to pay back your loan amount. That is why proof of income is required at the start of the application process.
This income does not have to be from a regular job, it can be income from social security, and even disability. As long as the income can be verified by the employer, or the issuing agency, it is valid for approval purposes.
How Much Money Will I Get from My Title Loan in Utah?
The amount that you are approved for is based upon the current market value of your vehicle. Lenders will often consult market value guides, such as the Kelly Blue Book, to see what the current market value of the vehicle is. Each lender can control the amount of money they will lend to a potential borrower, based on that value and ability to pay back the loan.
Generally, a title loan lender will not award you the full amount that comes back from the Kelly Blue Book report. The lender will still do a thorough inspection of your vehicle, inside and out, to come up with a more precise amount that your vehicle is actually worth.
How Much Interest will be Applied to My Loan?
The state of Utah, also, does not have any laws in place that cap interest rates on title loans. Therefore, lenders can charge whatever they want to charge. Interest rates are charged on a monthly basis, so you can expect to pay about 25%, or more, per month in interest.
For instance, if you take out a $3,500 title loan, and your monthly interest rate is 25%, you may be paying $875 in interest each month, plus your principal payment balance.
It is best to only borrow what you need, and what you can afford to pay back. Title loans are meant to help push you towards financial freedom. Not push you further in the hole.
How Do I Apply for My Title Loan with LoanMart?
- Call: 1-855-422-7412
- Click: https://www2.800loanmart.com/application/application
- Visit: Click the link to find out where your nearest participating store location
What Do I Need to Get a LoanMart Title Loan?
LoanMart requires a few documents from you to make sure that you are who you say you are, and that you’re not getting a title loan on someone else’s vehicle.
You will need to provide the LoanMart agent with:
- A vehicle title in your name
- A government issued photo ID
- Proof of income
- Proof of residence
- Several photos of vehicle for inspection
When Can I Expect My Money?
After completing your application, it is possible to receive your LoanMart title loan in less than 24 hours3. The time frame depends on the time of day you are approved, and the method of which you request your funds.
You can request to have your loan funds sent to you electronically, via direct deposit. You can also have your loan funds sent to you via a check that will be mailed to the address on file. Or, you can request to pick up your funds in cash from the local participating store location nearest you.
Title loans in Utah are not at all complicated to understand. Yet, it is still important that you are aware of the state’s title loan practices, to best protect yourself. Because there are no limits on interest rates, lending companies can charge you whatever they want to. It is up to you to do business with a lending company that cares about your financial well-being. And it is up to you to make smart financial decisions.
LoanMart could be the lender for you1! Click here to learn more.