Bad Credit Title Loans
Borrow up to $25,000 with a title loan and we won't base the approval decision on your credit score. Your vehicle's equity is the collateral, not your credit history.
How Car Title Loans Work When You Have Bad Credit
Bad credit title loans are designed for people who need quick cash and otherwise wouldn’t be able to get a loan from a bank or personal finance lender. They work differently from conventional loans as they are underwritten based on the equity in your vehicle, not your FICO score.
If you have bad credit, chances are your car is the only collateral to get a title loan. It’s worth comparing your options before committing to any bad credit loan.
What Are Bad Credit Title Loans And How To Get Them?
Title loans with bad credit are short-term loans that are given using the borrower’s vehicle as collateral. Missing payments can put you in default and your lender may require full payment of the balance or move to repossess the vehicle. However, unlike most other types of consumer loans, you don’t need good credit to get cash from a title lender. This is because bad credit title loans are made for people with bad credit. The bad credit title loan process is simple because you don’t need to supply any other form of collateral aside from your vehicle. In most cases, there’s no hard pull with the credit bureaus.
After your approval, you can arrange how to make the payments with the lender. Companies will wire the funds straight to your checking account through direct deposit, and some lenders will send you a money order or offer cash in person. You can also pay more than your minimum payment if possible, which will help you save money and lower the interest you owe.
Why Get Cash With An Auto Title Loan If I Have Bad Credit?
The reasons why you want to get auto title loans with bad credit are simple. These loans won’t require a check of your FICO score; instead, the underwriter looks at the equity in your vehicle. Compare the underwriting for a bad credit title loan versus what you need for a personal loan. You can quickly run out of options, and there may be no other choice but to tap into the equity in your car.
It’s essential to remember that bad credit loans are not for everyone. Most title loan places will want to see proof that the loan can be paid back. This means you must show proof of income from a job or SSI that verifies you make enough monthly to afford the payments.
What A Lender Looks For When Underwriting A Title Loan Applicant With Bad Credit
When getting approved for a bad credit title loan, lenders will sometimes check your FICO score to see if you’re still a good candidate for the loan approval. They look for examples of credit misuse or issues that are so significant that their underwriting department may have concerns and deny the loan.
They check whether you have any charge offs or title loans in default on the credit report. We’re not talking about missed or late payments, as those are common and don’t often lead to an immediate repossession. Another factor that sometimes comes up with title loans is your credit utilization ratio. Yes, these loans are secured by a vehicle, but how many other lenders are you paying, and do you have the ability to make payments on your title loan?
How Fast Can I Get Money From A Poor Credit Title Lender
Expect to have money in your pocket within 24 hours or less if you process all the documents quickly. Express Car Title Loans is a company that can get your loan application underwritten as soon as you send in the paperwork.
Title loans can be viable option when other unsecured lenders have turned you down. You can locate title lenders online or with neighborhood lenders so you have a list of companies to choose from. Title loans with bad credit work differently than conventional personal loans but can be just as beneficial when getting the money you need in one day!