Title loan is a short-term loan designed to give potential borrowers including those who may not qualify for other traditional loans, opportunity to borrow money. The process is quick, easy, and flexible – it requires just a couple of documents submissions, and uses only the borrower’s automobile as collateral. Just like other corporate loans where potential borrowers can be turned down, title loan lenders can also turn down the requests of potential borrowers based on some legal violations. Some of which are highlighted below;
This is true for all official loans, anyone below 18 years of age is not old enough to be held responsible for a commitment such as being saddled with repayments. This also applies when applying for title loan, although you may have a car of your own at age 16, you will still remain ineligible for a title loan until you’re up to 18 years old.
Title loan only requires the following documents automobile title, proof of residential address, identity card, and some lenders may ask for proof of income. If the investigation to verify the documents reveals that any one (or more) of the documents contains false information, the potential borrower will automatically be disqualified from borrowing.
This can be a red flag when requesting for a title loan, although it’s not a universal principle among title loan lenders. However, most lenders will reject an application from a potential borrower if they discover that the borrower still owes debt on the collateral which is the vehicle.