Why Would You Get Denied an Auto Title Loan?
When you’re stuck in a financial crisis, getting rejected by lenders can be frustrating. But the truth is that traditional lenders will deny applicants all the time for different reasons.
Take a closer look at the most common reasons why a loan application is rejected:
- Poor Credit Score
- Lack of Credit History
- History of Bankruptcy
If you don’t qualify for a traditional loan, a title loan could be an alternative option to consider. Auto title loans are known for being easy to apply for due to their high approval rates. However, many applicants will not qualify for a car title loan.
There are several reasons why you may not qualify for a title loan. Some of the most common reasons include the following:
- An Issue with Your Vehicle Title: Certain details on your car title could prevent you from obtaining a title loan. For example, you may not qualify for a title loan if the car title is not solely in your name. Or, if the title is registered to a business, that can also be an issue.
- Problem with Vehicle Registration: You may not be able to obtain a title loan if your vehicle is registered in a state that does not allow car title loans.
- You Did Not Provide the Correct Documentation: If you fail to provide the proper documentation during your loan application, it could be rejected.
- Not Enough Equity: You need to have a significant amount of value in your car to qualify for a title loan because the vehicle is used as collateral for the loan. This means that if you default on the loan, the lender has the right to repossess your vehicle to recoup the money that you borrowed. Therefore, the lender will want to ensure that your car has enough value to cover the loan amount in case you cannot repay it.
- You Did Not Provide a Steady Source of Income: Many title lenders require applicants to provide proof of income because it helps ensure that they can afford to repay the loan. If you do not have a steady source of income, you may not qualify for an auto title loan.
If you did not qualify for an auto title loan, you need to figure out why you were denied. Just ask the lender! Once you are able to identify the reason, you can take the appropriate steps to correct the issue(s) and apply again. Additionally, make sure you are working with the right lender.
What Happens if I Don’t Qualify for a Title Loan?
If you don’t qualify for a title loan initially, don’t panic. Instead, consider the reason(s) why your application was denied before reapplying for an online title loan. You can try again if you were denied the first time you applied.
Suppose a title lender denied you for one of the previously mentioned reasons. In that case, you could consider some of these solutions:
- Poor Credit or Lack of Credit History: While credit isn’t the focus of the approval process for a title loan, a lender may still deny someone with bad credit or no credit history. You could always ask someone to cosign with you if you have poor credit. However, be aware that you and the co-borrower must be responsible for the monthly payments. If you fail to repay a loan as the primary borrower, the co-borrower must pay the loan off on your behalf.
- An Issue with Your Vehicle Title: The title of your car must be in your name to prove the vehicle belongs to you. If the title is not currently in your name, you will need to visit your local Department of Motor Vehicles(DMV) to request a title transfer. Once you transfer the title to your name, you could apply for emergency cash through a car title loan!
- Incorrect Documentation: If you submit the wrong documents, it is acceptable to try again. But that can be stressful if you’re required to drive back and forth to a location to resubmit everything! You do not have to travel far to inquire about a ChoiceCash title loan. Instead, you could instantly resend paperwork online without wasting time! Make sure to submit recent documents with your application, like recent phone bills to prove your residency, recent bank statements or pay stubs to prove your income, etc.¹
- Not Enough Equity: If your car did not have enough value to qualify as collateral for a title loan, don’t stress. You can apply with a different vehicle if you have one!
- An Issue with Vehicle Registration: If your car was registered in a state that didn’t allow title loans at the time of your first inquiry, but you have moved to a state that does, you can easily apply again. Just make sure that your vehicle is registered in the new state before you start your application!
As long as you have everything in order, you could qualify for funding in no time! Go online or contact a ChoiceCash title loan agent at 855-422-7402 to start the approval process today.¹
How Can I Qualify for an Auto Title Loan?
Now that you know what happens if you don’t qualify for an auto title loan, it is time to learn how to qualify! Obtaining approval for online title loans can be simpler than you think. In fact, the approval process for a ChoiceCash title loan can be quite flexible and convenient!1 You can conveniently apply for the funds you need online or over the phone.
To qualify for a title loan, however, you must also meet some initial requirements during the application process.¹
What are the Requirements for an Online Title Loan?
Car title loans are typically flexible in terms of approval because of their straightforward qualifications and convenient approval process.
To qualify for a ChoiceCash title loan, you will need to meet the following requirements initially:¹
- Applicants Must Be 18 Years of Age or Older: Applying for an auto title loan is a big financial decision. If you are under the age of 18, you will not be able to get a title loan.
- Have a Vehicle Title in Your Name: Your car’s title must be in your name at the time of your application. Talk to a ChoiceCash title loan agent if you have lost or misplaced your title since they could help you learn how to request a duplicate title at the DMV.
- Possess a Qualifying Car: You don’t need a specific type of vehicle to obtain approval for a title loan. However, your vehicle must have a certain amount of equity to qualify as collateral for a title loan. It’s okay if you don’t know your car’s current value! You could always use ChoiceCash’s online title loan calculator tool to get a quick estimate of your vehicle’s equity.¹
- Provide Proof of Income or Alternative Income: Before you can borrow money through an auto title loan, you must demonstrate that you have the ability to repay one. But as long as you can responsibly keep up with your monthly payments, you don’t necessarily need a 9-5 job to qualify. You can use alternative forms of income to meet this requirement. Acceptable forms of alternative income include worker’s compensation, pension income, or Social Security / Supplemental Security Income!¹
The requirements for a car title loan can be very straightforward. Applying for a car title loan shouldn’t be complicated! If you’re dealing with a financial crisis, you could apply for quick funding through a ChoiceCash title loan. You can start the inquiry process online or over the phone at 855-422-7402.¹
What Documents Do I Need to Qualify for a Car Title Loan?
You are required to submit certain documents to qualify for a car title loan. These documents are used to verify your information, assess your ability to repay the loan, and determine the condition of your vehicle. One of the ways you can prepare yourself for the approval process is to gather all the documents ahead of time.
You can expect to hand in the following documents during your title loan inquiry:
- A Valid Government or State-Issued Photo ID
- A Car Title in Your Name
- Proof of a Steady Income
- Proof of Residency
- Recent and Clear Images of Your Vehicle
- A Few References May be Required
You can also scan your paperwork and send it directly through email or fax to a ChoiceCash title loan agent. After you submit the required documents and meet the right criteria, you could qualify for quick funding through a ChoiceCash title loan serviced by LoanMart!¹
Find Out if You Can Qualify for an Online Title Loan Today!
You can find out if you qualify for an auto title loan by taking advantage of a straightforward approval process! Take a look at the three simple steps you must complete to get emergency cash:¹
- Submit a Brief Preapproval Form Online or Over the Phone
- Send in Your Required Documents
- Collect Your Money if You Qualify!1
If you qualify for an online title loan, you could choose from a few different ways to get your funds:
- Have the Funds Added to Your Debit Card
- A Direct Deposit to Your Bank Account
- Get a Check Sent to Your Address
- Pick Up Your Cash at a Participating Money Transfer Location Near You!
If you need financial assistance to get back on your feet, a title loan could save the day. Contact a ChoiceCash title loan agent at 855-422-7402 to see if you qualify for a car title loan! Or, just visit the website. Qualified borrowers can obtain emergency cash in as little as one business day.¹