It can be easy to get a bad credit score over time. Lose your job, get behind on credit card bills, or go through a home foreclosure and your credit score will take a giant dive. However, the modern world is based on finance, so you may soon that it is impossible to get ahead without some type of loan to improve your overall situation. This might lead you to start looking at bad credit title loans, which can be one of the few ways that you can get a loan if you don’t have a good credit record. Here comes the good news. Online title loans are designed for people with bad credit and unlike most personal loan companies, you’re odds are much better in terms of getting approved!
Can I Get a Car Title Loan with Bad Credit?
Simply put, yes. There are a few requirements, but good credit is not one of them. If you have a car title in your name and the vehicle is still running and has some value, then you can apply for bad credit title loans. In fact, bad credit title loans are some of the easiest to obtain since you only need to have collateral in order to be approved, and that collateral is your car.
You don’t need to give the bad credit title loans company your vehicle, but you do have to give them your title until the loan is paid in full at which point you will receive it back. Most bad credit title loans are short-term and designed to be paid off in less than a year. Depending on the situation, you can work with the lender to extend the payoff terms, but it tends to be in your best interests to pay off bad credit title loans sooner than later since you will be accumulating interest the longer you wait.
What Is Required To Get An Online Title Loan If I have Bad Credit?
In order to obtain bad credit title loans, you need relatively nothing other than a paid off vehicle. In fact, some bad credit title loan companies will not even run your credit. They will simply check to ensure that your vehicle turns on and will give it a quick inspection while you are there. Past that, you will need a photo ID, the title, and a bank account where the loan funds can be dispersed into. As a side note, the title has to be clear meaning that there are no other liens attached to it in most cases.
Even better, in some instances, you do not even have to go down to a loan shop in order to obtain your title loan. A lot of bad credit title loans can now be applied for online which makes it even easier to get money now if you need it. These creditors are used to people who have poor credit histories. They only care about whether you have a current job so you can make payments and own your car. Your car is the collateral in this type of loan, fall behind and they will simply repossess your vehicle which will work out just as well for them.
In the meantime, they profit off of lending money with a high-interest rate attached to it. Therefore, very few people actually get turned down for bad credit title loans if they meet the basic lending criteria and have a clean title. Thus, if you have a car you are probably already eligible for online title loans from Highway at this moment.
How to Choose the Right Bad Credit Title Loans
There are a lot of companies that advertise bad credit online title loans, but like every industry, there are some that you should stay away from. Therefore, you want to do some research and make sure you choose a company with good reviews and the best rates. Find a company that’s actively doing business in your state and it may be best to work with a lender that offers other types of secured loans as well, for instance consider those that also offer title loans with no job, and companies provide funding for RV title loans as well. You can expect high rates for bad credit title loans, but you still want to find the best you can. Don’t be afraid to look around for bad credit title loans and ask all the questions you need before signing on the dotted line.
Janet Patterson is VP of Marketing Communications for Highway Title Loans and the feature editor of its Lending Blog. Janet has worked in the financial service industry for over a decade, with 7 years of experience in the car title loan industry. She previously managed a customer service team that helped and advised consumers on all their lending related questions and concerns.