Is it Possible To Get A Title Loan With Bad Credit?
Most consumers that apply for online title loans will have little to no problem getting approved with bad credit. Many of our visitors that qualify for bad credit title loans have already tried to get an installment loan or cash advance from their bank or credit union. Unfortunately, most traditional finance options are going to require good to excellent credit. They also want bank statements and answers on why you may have missed one or two payments in the past. Compare
Most applicants think they need decent to good credit to be approved for an online title loan. Fact is, that’s not always the case as the vast majority don’t know if title loans go on your credit at all! Most companies would rather work with a client who has a clearly owned pink slip and employment history. By showing a lender you own the vehicle outright you’re letting them know there’s collateral available. That way they can repossess the car if the monthly payments fall behind or if you simply default on the loan outright. It’s not ideal to be facing repossession and most lenders will work with you on repayment plans or alternative payment methods. But that’s the reality of the situation where the collateral is often the first priority.
How To Get A Bad Credit Title Loan Online
In most cases where the borrower has bad credit, a personal loan or installment loan is hard to get. Even after initial approval with a bank or personal loan company, it will still take days or weeks to send in all the paperwork and documents. An unsecured loan, if offered, can carry an interest rate that is actually higher than that of the original debt. The same is true for those who apply for online payday loans or cash advances. Borrowers with bad credit should seek out alternative methods of borrowing if at all possible. The best financing offers will always be a low interest loan from your bank or a credit card cash advance. These will have the lowest interest rates, but it’s always difficult to get approved with poor credit.
Another thing to consider is that you need to fill out multiple online applications. Consider not only filling out applications online but actually calling in and speaking to lending reps over the phone. By speaking to a loan representative in person you can get the real facts and remove unnecessary steps that may be required when you submit a title lending application online or with a company that offers auto pawns. This is the same principle as if you applied for a credit card or mortgage.
We know how a mortgage lender acts if we get a quote from them and shop it around for a better deal. Why not do the same with three to four car title loan companies? Yes, it may take more time to apply and get a loan when you speak with multiple companies, but you’re sure to save money when all is said and done. The more companies you contact and have worked against each other the better it’s going to be when you get the final loan terms. That way you can settle on a car title loan with a reasonable interest rate is obtained.
Bad Credit Title Loans Are Becoming More Common
If you apply with multiple title loan lenders the odds are high that you will run across scam companies. Some offshore companies have moved from payday loan scams to those that involve the title loan industry. Be careful and always research a company that funds online title loans. Find a website or company(like Premier Car Title Loans Online), that lists their contact info on the homepage. Consider what happens when a potential borrower starts filling out online loan applications. His or her information is shared by the credit reporting agencies with outside entities and marketing firms. This practice makes it easy for unsuspecting consumers to become targets of unlicensed lenders.
Consumers with bad credit are especially vulnerable because they have limited financing options. Some applicants are desperate to find any lender who will guarantee them a loan. Watch out for unsolicited calls, e-mails, or letters that claim guaranteed approval, or those that promise they can fund a title loan without title in hand. Likewise, if a lender asks for money in advance for “an “application fee,” or for the “first month’s payment,” this is likely a car title loan scam. Most reputable companies will deduct their fees from the actual loan amount that is obtained.
You shouldn’t be denied for bad credit title loans
In some cases, an online lender may require a security deposit because your credit score is lower than anticipated. Don’t do this as it’s likely a scam. Even if you have bad credit that doesn’t always factor into the lending decision. Yes, an online title loan company may check your credit and ask for employment or job references. Some companies will also ask for bank account information or try to verify a checking account. This is normal when working with a reputable lender, as it’s often part of the check verification process. It’s to be assumed that you may be limited in the amount you can borrow for a bad credit title loan, but ultimately you can expect to be approved if you can provide proof of a paid off vehicle and proof of income.
Whatever you do, don’t send payment to a company that says it’s a requirement for those with bad credit. Once payment is sent, the auto equity lender will likely disappear for the simple fact that all legitimate title loan companies do not charge upfront fees or charges for you to apply. Consumers who suspect that they are victims of a title or payday loan scam should contact the FTC and the police. Fraud alerts should be filed with each of the major credit bureaus (Experian, TransUnion, and Equifax). Victims of financial fraud should request copies of their credit reports and report any unusual activity.
Jessica has blogged about the title loan industry since 2012. Before that, she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions that relate to short term loans!