Utah Car Title Loans
If you are suffering from a poor credit rating, then you may want to look into the idea of Utah title loans. Don’t worry; the idea of them is not as scary as you may think, although there are a few things that you will need to be aware of.
What are title loans?
With title loans in Utah, you will be taking out a loan against the value of your vehicle. You are essentially going to the lender and saying “if I do not pay my money back on time, I am giving permission to take possession of my vehicle”
While most title loans are given out against cars, there is a chance that you will also be able to obtain a title loan against other vehicles e.g. a boat. As long as you have proof of title, then you should be fine. It will be dependent on the company that you have opted to work with, however.
Can you still use your vehicle?
When you take out a title loan, you are only handing over the right for the company to take your vehicle if you fail to pay back the loan on time. This means that the only time you will ever be handing over your vehicle will be if you do not pay, but we are sure you are going to pay off your Utah title loan, so this is something which should not be that much of an issue.
How much can you borrow in Utah
It is going to be dependent on the value of your vehicle and which company you are using for your title loan.
Many people seem to think that when they get a title loan, they will be able to claim money for the full used value of their vehicle. This is not the case. Not by a long shot. You will get a fraction of the money of the value of your vehicle. This is to help protect the lender. Remember; if you do not pay your loan back on time, the company needs to sell your vehicle. If they are giving you the full value of your vehicle when you get a loan, they would not be able to make any money when they sell it on. In fact, they will probably end up losing money.
Many people find themselves ‘insulted’ when they get a quote for their title loan but rest assured that whatever price you have been quoted for your loan will be the standard price. You can’t haggle, because the loan company is only going to lend to you if they do not see any risk in the transaction.
What do you need when you obtain a title loan?
Surprisingly, not a whole lot. Although, once again, this is going to be fully dependent on the loan company that you have opted to work with. At the absolute minimum, you are going to need to show that you have the title to the vehicle that you are getting a loan against, coupled with your ID. If your ID does not match the title on the vehicle, then you will not be able to obtain a loan. Simple as that. These companies really do not want to take any risks here.
Who are title loans for?
Title loans are loans which have been designed for those who are struggling to obtain credit elsewhere. Because you are putting forward collateral on your loan which far outweighs the actual value of the loan, there will be no credit check. This means that if you do have a poor credit score, it is not going to impact you at all. In fact, the bulk of the people who obtain title loans are those who traditional lenders will not lend to due to poor credit.
Title loans in Utah have also been designed for those who want a loan which is paid off in the short term. The money that you borrow against your vehicle is not going to be a long term loan. At most, you will get a month or two to pay back your loan. If this is not something that you are able to do, then this is a type of loan which is not going to be right for you.
It is worth noting that the interest rate on these loans will be higher than your traditional loan, mostly because there is still a lot of risk on the part of the lender. However; the interest rates are not going to be anywhere near the sort of interest rate that you would get on a payday loan because you are giving up collateral. Therefore, this is always the best type of loan to go for if you need money nice and quickly and can afford to pay it back on time.
What happens if I default?
You are going to lose your vehicle. Simple as that. There is no backing out of it. If you do not pay the title loan back on time, then the rights to your vehicle will automatically transfer over to the lender and they are going to be free to sell it for whatever they wish (you can buy it back from them at the price they are charging, but it will be way more than what you borrowed)
The lender will likely send a company around to your house to pick up the vehicle the day the title transfers over to them.
Best companies in Utah
If you want the most competitive lending rate on your title loan, then it is suggested that you look for online companies in Utah. They are going to be able to lend you money 24/7. Because the loan is offered online and there are hundreds, if not thousands, of companies competing with them, you will often get a far better deal on the interest rate and the amount you can borrow too.