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 visitors who 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 will require good to excellent credit. They also want bank statements and answers on why you may have missed one or two payments. That’s why a title loan with poor credit is great for someone with a car that’s paid off and those looking to borrow more than a few thousand dollars.
Most applicants think they need decent credit to be approved for an online title loan. The fact is, that’s not always the case, as the vast majority don’t know if title loans go on your credit! Most companies would instead work with a client with lien free 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 default on the loan outright. It’s not ideal to face repossession, and most lenders will work with you on repayment plans or alternative payment methods. But that’s the reality where the collateral is often the priority.
Get A Title Loan With Bad Credit
A personal or installment loan is hard to get when the borrower has bad credit. Even after initial approval with a bank or personal loan company, sending all the paperwork and documents will still take days or weeks. An unsecured loan, if offered, can carry an interest rate higher than the original debt. The same applies to those who apply for online payday loans or cash advances. Borrowers with bad credit should seek out alternative borrowing methods if 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 getting approved with poor credit is always tricky.
Another thing to consider is that you must fill out multiple online applications. Consider filling out applications online, calling in, and speaking to lending reps over the phone. By talking to a loan representative in person you can get the 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 applying 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 bad credit lending companies? Yes, applying for and getting a loan may take longer when you speak with multiple companies, but you’ll save money when all is said and done. The more companies you contact and have worked against each other, the better it will 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.
Apply Online For Bad Credit Title Loans
If you apply with multiple title loan lenders online, 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 constantly research a company that funds online title loans. Find a website or company(like Premier Car Title Loans) that lists their contact info on the homepage. Consider what happens when a potential borrower starts filling out online loan applications. Credit reporting agencies share their information 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 claiming guaranteed approval or promising to 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 obtained.
Bad Credit Title Loans Near Me
Are you considering applying with a lender offering bad credit title loans in your neighborhood? You’ll first want to determine if you should start the application online or go with a local company that does the paperwork and underwriting in person. Most brick and mortar lenders will require detailed vehicle documentation and want to inspect the vehicle. 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.
Loan Amounts & Interest Rates On Title Loans With Bad Credit
Bad credit title loans can provide up to $20,000 in funding, and the expected interest rates vary depending on the lender and your borrowing profile. Generally, these loans have higher interest rates than other types due to the risk associated with bad credit borrowers. Your credit score doesn’t mean much during the underwriting process. The typical range for interest rates is between 30%.
There are several ways to reduce the interest rate on a title loan:
- Shop around for the best rates and terms. Comparing different lenders can help you find a more favorable interest rate.
- Look for introductory discounts or low-interest introductory periods and take advantage of them if offered.
- Negotiate with the lender for a better rate, especially if you have a good repayment record.
- Make larger payments when possible to reduce the interest owed over time.
I’m ready to apply for a car title loan with bad credit. What’s the next step:
- Gather all necessary documentation that the lender needs, such as proof of income, address, personal references, etc..
- Fill out an online application or visit a brick-and-mortar lender and have them process your application in person.
- Receive approval from the lender and read all documents carefully before signing any paperwork to ensure you understand your agreement.
- Once approved, provide the necessary collateral for the loan and make timely payments as agreed upon in your contract with the lender to avoid any penalties or fees.
Call Premier Title Loans today at 800-250-6279 to see what financing terms and payment amounts you can expect from a bad credit title loan lender near you. We work with customers all across the country, and we’ll take the time to find a local lender that works with applicants regardless of their credit score!
Jessica has been working in the title loan lending 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 related to short term loans!