Do you need a quick cash loan, but you have bad credit? If so, then your best bet is to get a title loan. It’s the ideal loan type for individuals who have a poor credit rating. So, what are title loans and how do they work?
Well, we’ll explain that in the information below, just keep reading.
What Is a Title Loan?
A title loan is a convenient way for individuals who need money to get a loan. If you have bad credit, chances are you can’t get a payday loan or a loan through the bank. However, if you own your vehicle and it doesn’t have a lien on it, you can use it as collateral to get the money you need.
Is Good Credit Needed for a Title Loan?
You don’t need perfect credit to get a title loan. Unlike a traditional bank loan, title lenders use your vehicle as leverage against the loan. Let’s say you borrow $500. When you sign the agreement, you’ll provide the lender with the title to your vehicle.
They’ll set you up on a payment plan, and you’ll have to adhere to the payment schedule. If you are late, they’ll apply fees to the payback amount. Also, most title loan lenders also charge interest rates on the borrowed amount.
For example, if you get a $500 loan, you may have to pay back $600 because of the interest. Keep in mind that if you completely fall behind on the loan and default, the lender has the legal right to claim your vehicle.
So, if you’re going to use a title loan lender, be absolutely sure that you can pay the loan back.
How to Get Approved
In most states, you must be at least 18 years old to apply for a title loan, and you must be the owner of your vehicle. You can’t get a title loan on a car that you’re still financing. Also, you must have a valid driver’s license.
The application process is fairly easy, and shouldn’t take more than 30 minutes. These days, most title lenders offer the option for applicants to apply online. The majority of title loan companies also want to see proof of income.
Your credit may not be a big deal, but they want to make sure that you have the income to repay them, in addition to giving them your title. Once you’ve applied, you could get your cash sent to you electronically in as little as 30 minutes after approval.
Follow the highlighted link to learn more about how title loans work.
Get a Title Loan With Bad Credit
When you need extra money, don’t let your bad credit get in the way. A title loan is a perfect option for quick cash. Just make sure that you only use title loans as your last option. You don’t want to pay high-interest rates and fees if you don’t have to.
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