Factors That May Affect the Approval of Your Car Title Loan Application

car title loans are a favorable option for car owners who need cash fast, with these loans offering cash and financial relief to millions of people per year. Getting a car title loan is often easier than getting a traditional loan. Because you use your car as your loan’s security and there are usually no checks, the process is often faster. Car title loans are also a good option for people who have declared bankruptcy, who are underemployed or who have poor credit as long as they own a car. When applying for a car title loan, different factors will come into play, and it is these factors that will determine whether your car title loan gets approved or not.

Credit Score

Although many car title loan lenders do not usually check your credit history, some of them do. Some lenders will overlook your credit score, but a higher credit score always helps and determines the amount of money they agree to loan you. In most cases, the lenders look at your ability to repay the loan because they do not want to be left with a car that will cost them extra to sell.

The Car’s Valuation

The value of the car is very important for these types of loans. To get good car title loans Bradenton, your car must be in good condition, ideally it should never have been in an accident, and it should be  relatively new with a good resale value. Owners of vehicles that are over 10 years old and that have over a hundred thousand miles on them might have a harder time getting the loan amount they need, that is if they get the loan at all.

Income

Lenders need to know that you have the ability to repay the loan amount, and that is why they will often need to see proof of income. Lenders with full-time jobs are often considered first because they can make monthly payments on the loan. The type of income also matters because if you are a business owner, you will have an easier time getting the loan than a freelancer would.

Insurance

Most lenders require that the vehicle owner has comprehensive insurance, liability insurance and mechanical breakdown insurance as conditions of getting the loan. This is usually the case if the lender will let you keep driving the car as you repay the loan.

Repossession

Repossession is usually a huge red flag for most car title loan lenders. Repossession tells the lender that you already had trouble paying off a loan in the past, which means you are a huge liability to them.

Overborrowing

You need to understand your limits when taking on a car title loan insurance. You need to know the value of the car so you do not ask for more than it is worth. If you borrow too much on a car whose value is not high enough, your request is likely to not get approved.

Getting a title car loan can be challenging, especially for those who are new to it. If you are having a hard time getting a loan approved, review the points above to find out what the reason likely is and take measures to correct it.