What Are the Main Reasons People Don’t Qualify for a Car Title Loan?

 
You are here: Home » Information » What Are the Main Reasons People Don’t Qualify for a Car Title Loan?
What Are the Main Reasons People Don’t Qualify for a Car Title Loan?

Auto title loans can be a great option for people who need assistance from non-traditional lenders. Here’s how it works: a person puts up their car as collateral for a loan, the amount of which is based on the value of that automobile and their ability to repay. They agree to the loan terms, receive a check, and maintain possession of their car while the lender holds the car title.

Customer service is important to us – but so is being responsible and encouraging our customers to do the same. Because of this, there are times when someone might not qualify for a title loan using his or her automobile.

Our company does not have a credit score requirement, but we do perform a credit check during the application process. Our determining factors are more focused on the value of the car, a potential borrower’s income, and the status of the car title. The main reason people don’t qualify for a car title loan is because they fail to meet one or more of these requirements.

Not enough value in a car: We want to be financially responsible as a company and we believe our customers should be, too. That’s why those who want to take out a loan for more than their car is worth may not qualify for an auto title loan (though we may be able to work with that applicant to provide a smaller sum of money).

Inability to repay the loan: A potential borrower needs to have value in their car to secure an auto title loan, but they also need to have enough income for us to reasonably believe they could repay the loan. Being unemployed, self-employed or on disability does not automatically disqualify someone from having a successful application, but we do need to be confident in their ability to make payments and therefore use that person’s gross income to determine whether or not they may qualify.

Status of the car’s title: In order to qualify for an auto title loan, the car that is being used as collateral needs to have a lien-free title. People also may not qualify if the car has no equity. However, if an applicant has just a few payments left, we may be able to help them and they should contact one of our representatives.

Again, the main reasons people don’t qualify for a car title loan are because the automobile does not have as much value as the amount of money they are asking for, they may not be able to repay the loan, or if the title already has liens placed on it. We try to serve our customers’ needs as best we can, so anyone wanting more information should chat with a representative to see if they could qualify. Our process to qualify an applicant is completely free.

Information


Related Posts