Why Are Title Loan Applicants Disqualified? – VIVA GLAM MAGAZINE™

Why am I not eligible for a car title loan?

A car title loan has two main requirements.

  1. First, applicants must have a certain amount of positive capital in the vehicle to rent.
  2. Second, the applicant must show evidence of their ability to borrow and repay the ownership loan.

With these two qualifications in mind, it’s easy to see why a title loan applicant would be ineligible. The simple answer is that applicants may be denied a car title loan if they do not have sufficient net worth to take out the loan or cannot prove they can afford to pay the loan. If the applicant does not have a qualifying vehicle or income, they will not be able to receive the required cash through her title loan online.

But what other reasons an applicant may not get approval for a car title loan?

What might disqualify a title loan applicant?

So what are the reasons why title loan applicants are disqualified? Before understanding why applicants are not approved, it is important to understand how applicants work. title loan It is a short-term installment loan that allows you to get a loan with your car as collateral. Ownership of the car is the collateral for the loan, giving you access to a portion of the car’s equity and turning it into cash.

The amount of equity capital is very important as the car is used as collateral for the loan. The car’s value determines loan eligibility and potential loan amount. Normally, an applicant can receive his 25% to 50% of the value of the car, depending on:

  1. their place of residence
  2. and their income/ability to repay loans

Now that you know how title loans work, you may understand that applicants may be disqualified for a car title loan. Here are some of the main reasons a borrower may be disqualified.

  1. Their car does not have enough positive capital: Capital is the difference between present value and car’s and borrowed. If you owe more than the car is worth or if the car is in poor condition, you may have negative equity and the car title may not qualify for his loan.
  2. A lien is already placed on the car: If the applicant already has a lien on the car from an existing title loan, they may not be eligible for the title loan. However, if the applicant has only a few payments left, it may be possible to refinance the current loan if the terms are unsatisfactory.
  3. Inability to repay title loan: The borrower must have sufficient income to reasonably believe the lender can afford the loan. If the borrower receives disability benefits or is self-employed, the title of the car may qualify for his loan, but the borrower has confidence that he or she can afford it is needed.

What do I need to do to qualify for a title loan?

if you to be confident You may be wondering what it takes to qualify for the ability to repay the title loan. As with any other loan, when you apply for the loan, you will be required to submit several documents that can prove your identity. Here’s what you generally need to qualify for a car title loan:

  1. Proof of income such as bank statements, pay slips, etc.
  2. Proof of address from a recent official email, such as a utility bill

Now that I know why title loan applicants are ineligible, how do I apply?

Most Americans enjoy the convenience of online shopping. Many of your errands can be done online! Grocery shopping, clothing shopping, and even car shopping can all be done on your smartphone or computer. So why not apply for a car title loan online?

Some online title loan options allow you to initiate a referral from your smartphone or computer.

So don’t wait to see if you qualify for the financial assistance you need. Loan options such as the ChoiceCash title loan offered by LoanMart give you instant access to a convenient 3-step referral process right from your phone. Visit our website to start your loan inquiry online. Call 855-914-2945 to find out more about the title loan process and what you need to do to qualify.

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