On The Money

Title Loan Q&A: The Most Common Questions Answered

Title Loan in Utah Need some cash pronto? If you have an automobile and legally own it, and you meet the basic qualifications title loan lenders require, you should consider getting a title loan. A title loan will use your automobile, whether it’s a car, truck, or motorcycle, as collateral for your loan.

Utah Money Center answers some of the most basic questions about title loans and their answers to get you started.

What Exactly are Title Loans?

Title loans, also referred to as title pawns, are very convenient and fast ways for individuals who have a vehicle to obtain money. Obtaining one is pretty much straightforward considering that you also have your vehicle’s title, which will be used as collateral for the money you need. One of the greatest things about title loans is that you actually get to keep your vehicle and use it — only the car title will be held by the lender.

How Do Title Loans Work Exactly?

With typical loans from traditional sources like banks, private lenders, or credit unions, your creditworthiness will serve as your loan’s collateral and will determine the amount of cash you can obtain from the loan. However, not all people are creditworthy and some don’t even have any credit. Title loan lenders instead use your vehicle as collateral and not your creditworthiness or rating. You only need to meet some very basic requirements, mainly a vehicle and its valid title, to secure a loan and when you get the title of your vehicle back when you repay the loan.

How Much Money Can I Get with a Title Loan?

Generally, you could get as much as $10,000 from some lenders. However, your exact loan amount will be dependent on your vehicle’s value.

Is it True that Title Loan Interest Rates are Extremely High?

Not necessarily. Although some lenders charge significantly exorbitant interest rates, the reputable ones have extremely competitive rates and will typically help you develop a more personalized repayment plan that will fit your lifestyle.

Although there’s no shortage of title loan lenders, before you actually decide where to get a title loan, your have to first determine the loan type best for your needs. Figure out how much cash you really need and the amount of time you’ll need to repay it. Only then will you be equipped to choose among different lenders since you’ll be able to determine which one offers the ideal title loan option for you.