bad credit title loans are possible for those that aren't eligible for most unsecured loans

Is it Possible To Get Approved For A Title Loan With Bad Credit?

Most consumers who 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 often request bank statements and may ask why you missed any past payments. That’s why a title loan with poor credit is an ideal solution for someone with a paid off car and for those looking to borrow more than a few thousand dollars.

Most applicants think they need decent credit to be pre-approved for an online title loan. That’s not always the case, as most don’t know if title loans go on your credit! Most companies would prefer to work with a client who has a lien-free pink slip and an employment history. By showing a lender you own the vehicle outright, you’re letting them know there’s collateral available for them if you fall behind on the monthly payments.

 

Get A Car Title Loan With Bad Credit

Every borrower knows how daunting it is to apply for an unsecured loan with a bad credit score. The majority of applicants are turned down after a soft credit check because personal loans are unsecured and often require an impeccable payment history. Even if you’re pre-approved with a bank or personal loan company, submitting all the necessary paperwork will still take days or weeks.

The same applies to those who apply for online payday loans or cash advances. People 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, which brings us to a convenient way to use your car as equity for a title loan that doesn’t require excellent credit.

Premier Title Loans features a straightforward online application for anyone who has a paid off vehicle. We only need your vehicle information to get you a quote, and your credit score won’t even be a talking point during the pre-approval process! Once we know the year, make, model, and mileage of your car, we’ll create a quick title quote based on your vehicle’s equity, not your credit history! Expect a lending decision that same day, and your FICO score won’t be a significant issue during underwriting.

 

A customer with a credit score of 520!

 

Improve Your Credit Score With A Car Title Loan

By now, you probably know that title loans are a perfect fit for someone with a low FICO score. At Premier Title Loans, we offer pre-approval in California and other states without an extensive credit check. Some customers can even get approved with a recent vehicle repossession.

But did you know that you can possibly raise your credit score by making on-time payments on a bad credit title loan? Depending on the lender, most monthly title loan payments you make are reported to the three major credit bureaus, and this payment history shows up immediately in your credit report. Since your payment history accounts for approximately 35% of your credit score, you can see a rapid improvement in your FICO score after making a few payments on your title loan.

Not only that, but the length of your title loan repayment term is an essential factor in determining your credit score. So if you have a title loan that you’ve made multiple payments on and paid off by the due date, you can gradually improve your credit history and avoid the need for a title loan in the future.

 

Bad Credit Title Loans From A Local Lender

Are you considering applying with a lender in your neighborhood that offers bad-credit title loans? First, you need to determine whether to start the application online or work with a local company that conducts underwriting in person. Most retail lenders will require detailed vehicle documentation and want to inspect the vehicle in person. Some companies may also request bank account information or attempt to verify that you have a direct deposit setup.

 

track your credit score with an online report

 

Loan Amounts & Interest Rates On Title Loans With Bad Credit

Bad credit title loans can provide up to $20,000 in funding based on your vehicle value. Essentially, the more your car or truck is worth, the more you can get with a title loan. Qualified applicants can borrow 30% or more of the vehicle’s resale value, meaning a car worth $8,000 would result in a funding amount of $2,400 or more. Since these loans don’t take your recent credit history into account, you should expect a high interest rate, and the repayment terms may not be exactly what you’d like. Your APR will vary based on the vehicle value and repayment term, but you can expect an interest rate between 20% and 100% with most bad credit title loans.

 

There are several ways to reduce the interest rate on a title loan with bad credit:

  • Shop around with multiple title loan companies. Even if you can reduce the APR on your title loan by a few percentage points, you can save considerable money over the months or years you’re paying off the loan.
  • Look for introductory discounts or rebates on your interest rate. Premier Title Loans offers pre-approval for car title loans in California, and we work with direct lenders in many other states. Some of these companies offer reduced fees or promotional interest rates for the first few months of your loan!
  • Negotiate with the lender for a better rate, especially after you’ve made a few on-time payments. Why not consider refinancing your title loan to reduce the interest rate? There’s no risk asking your current lender or any other state-licensed title loan company to lower your rate. Recent interest rate reductions have made vehicle title loans in Los Angeles and San Diego more appealing. Some customers can refinance their bad credit title loans at rates under 36%!
  • Pay more each month to reduce your payoff term. Paying off a title loan can be challenging, especially if you’re only paying the minimum monthly payment. However, do what you can to pay off the loan before the expected due date. Even paying just a bit more each month can mean the difference between paying off your loan in 12 months versus 15 months!

Apply Today With Premier Title Loans

Have you recently been denied a personal loan due to a low FICO score or a limited recent credit history? We can help you get pre-approved for an equity loan that uses your vehicle as collateral, rather than your credit score. Best of all, it only takes a few minutes to submit an application and see if you pre-qualify for an online title loan! Call Premier Title Loans today at 800-250-6279 to see what interest rates you can expect from a bad credit title loan lender near you!