Title Loans

Title loans are in vogue in the Beehive State. Despite the warnings of pro-consumer groups because of the relatively high interest attached to these untraditional financial products, many individuals continue to gravitate toward these secured loans. Unless conventional lenders, like banks, stop shunning bad-credit borrowers, the status quo will remain unchanged.

Although title loans in Utah are widely available, they’re actually not granted to everyone. Many cash-strapped individuals don’t qualify for them for different reasons. Below are the factors lenders consider when approving or denying title loan applications.

Borrower Identity

Title loan lenders are selective in doing business to combat fraud. Careful lenders pull credit reports not to look for high FICO scores but to make sure that borrowers are the real vehicle owners.

Responsible lending is all about protecting the best interests of all parties involved. Apart from preventing identify theft, ensuring that the security for a title loan is legitimate and valid for resale in case of default.

If an unscrupulous borrower stops repayment, the lender will face challenges repossessing the vehicle and reselling it to recover the financial loss.

Title State

The title is the only collateral necessary to obtain a title loan. So, when it’s nowhere to be found, a borrower may be rejected.

Helpful lenders, however, are willing to work with borrowers who locate vehicle titles. These financial institutions may provide guidelines to secure a new title from the state’s motor vehicle office.

Also, it’s imperative for your title not to have any lien on it. A lender will find out whether your vehicle’s title is clean or not, so negotiate in good faith.

Vehicle Value


The amount of money you can loan depends on the type of vehicle you wish to use as security and its current market value. One thing’s for sure, though: you can’t loan 100% of what your vehicle is worth. You can only loan up to 50% of your car’s wholesale price, but you can borrow up to 75% of your motorcycle’s value.

Vehicles are depreciating assets, so the older they are, the less attractive they become. But if your aging car no longer serves you any purpose, its title can still be useful if you face any emergency financial woe.


You might not need to have excellent credit to qualify for a title loan, but you have to prove your capacity to repay nevertheless. Prepare reliable proof of income to convince a lender that you can pay on time. Otherwise, you may get a resounding no.

Payment History

If you have a delinquent signature or title loan obligation, applying for new credit to the same lender shouldn’t keep your hopes up. You ought to settle your past bills or else face denial. You might be able to negotiate to lower what you owe, but not all lenders are willing to condone default.

Title loan lenders are always open for business, but don’t assume that they’ll accommodate every borrower that comes their way. The expectations can be low, and the requirements can be lax, but make sure that your credentials are good enough before applying for a title loan.


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