At 1st Choice Money Center, we’re proud to offer several loan types that help people who need a quick boost to get back up on their feet. One of the most effective such programs we offer is the auto equity title loan, one offered to both Idaho and Utah borrowers, a fantastic and more beneficial alternative to payday loans.
In a car title loan situation, you put up the title of your vehicle and the car itself as collateral against the loan amount we’re lending you – up to $10,000 in most cases. Because vehicles are often worth significantly more than the $1,500 you can get from certain other similar loan types, the car title loan is enormously valuable for people who need larger sums.
While they’re rare, there are a few title issues that may be present on your vehicle that prevent you from being able to post it as collateral in a loan. Here are these potential issues, and what you can do about them.
Physical Title Document
Perhaps the most common title issue we see regularly is potential borrowers who simply have lost or misplaced the title. It’s vital to remember that a car’s title is a real, physical document that must be with you in the vehicle for several purposes, including if you’re planning to use the car as collateral on a loan.
These aren’t even the only issues you may run into if your title isn’t in the car, either. Ownership issues often crop up when this is the case, potentially creating several other hassles. Luckily, if you realize you’ve misplaced your title, your local motor vehicle office should be able to get you a replacement (assuming you are truly the legal owner of the car, of course).
Title Fraud Issues
Another potential issue with your car’s title is title fraud, which unfortunately is somewhat common in the vehicle industry. This is a process often performed by a shady used car dealer or a tricky previous owner, one where the title is scrubbed of previous issues that may have taken place with the car, such as accidents, major repairs or other potential safety hazards.
In many cases, title fraud is found when you’re dealing with less-than-reputable dealers or individual sellers. To avoid this, only deal with legitimate businesses when it comes to every area of your vehicle, including purchasing a new or used one.
Improper Transfer
Finally, you may run into one of several paperwork- or detail-related areas when it comes to taking possession of a vehicle you’ve purchased. Once again, this often takes place with shady dealers or sellers – it’s quite rare with reputable dealers. In certain extreme cases, the entire vehicle transaction may be voided due to improper transfer practices, meaning you won’t be able to put the vehicle up as collateral.
For more on the potential title issues that could block you from using your vehicle in a title loan, or to learn about our signature loans, installment loans or any of our other choices, speak to the staff at 1st Choice Money Center today.