There are more and better alternatives to payday loans in Utah than most places in America, and title loans are some of them. Yes, they are also secured, but they come with more funds and more flexible payment options. It is also easy to get approved; if you do not have problems with your qualifications, you can get the money you need in as quick as 10 minutes.
One misconception about Provo, Sandy, and Salt Lake City title loans, though, is that cars can only be used as collateral. This notion could not be more wrong. You can also use other vehicles, especially a motorcycle.
Not all bikes make good security for a title loan. So how do you know whether yours is one? Below are the signs that a title lender will agree to take it as collateral.
1. Your Bike Has a Clean Title
First of all, make sure that your motorcycle’s title has no lien on it. In other words, it can’t serve as a security for another loan at the time of application. If you borrowed money to buy it, used it as collateral, and has yet to repay the loan fully, then you can’t utilize it to apply for a title loan.
Generally, you need to pay your motorcycle loan in full to claim full ownership of your vehicle, although there are lenders may be willing to extend credit if you only a few payments left.
But if your motorcycle loan is far from maturity, you should consider a registration loan instead. This financial product does not require a clean title. You may qualify for it as long as the bike is in your name. Also, your vehicle’s current registration and your driver’s license must be from the state where you are applying for the loan.
If you qualify for a registration loan, you must acknowledge that no other lien can be placed on it, and it can’t be repossessed. However, you also have to agree that you will be subject to traditional collection methods in case of default.
Unlike a title loan, though, the maximum amount you can borrow through a registration loan is based on not only the bike’s value but also your income and employment.
2. Your Bike Still Has a Lot of Value
Speaking of motorcycle value, your bike needs to worth something good to be considered as viable security for a title loan. You can find an estimate of your vehicle’s value using its make, model, year, and mileage, among many other factors, through the Internet.
By and large, though, luxury motorcycles depreciate a faster rate than standard ones. Of course, the more miles the odometer shows, the less valuable the bike becomes. If your bike is a relatively old model, do not be so optimistic about borrowing a high amount of money against it.
3. Your Bike Is Not Your Only Means of Transportation
In the event of non-repayment, you may lose your motorcycle to repossession. If it is your only way to commute, then it becomes riskier for you to use as collateral. But if you have a car or do not mind taking the bus between your work and home, then using your bike for a title loan will not put you in a tougher position if you default.
You should not take out a motorcycle title loan if you have better options, for it often comes with high interest. But if you want to get quick cash, apply for it and be a responsible borrower to avoid ruining your credit standing.