How to Get a Title Loan with Bad Credit

How to Get a Title Loan with Bad Credit

Need money fast but have a poor credit score? No problem! Apply for a Car Title Loan comletely online and get instant cash. As this type of financing is secured, you have good chances of being approved.

WHAT IS A NON-BANK TITLE LOAN?

A non-bank title loan is usually a cash loan that is provided against the borrower’s vehicle as security. In the absence of timely repayment of the liability, the lender may sell the vehicle and thus recover its receivable. The amount of such a loan is usually from 25 to 50% of the value of the collateral, so it can be much higher than in the case of taking out regular installment loans or payday loans without security. A secured loan is a popular method of obtaining funds, available both at a bank and in non-bank companies. Increasingly, it is a new version of private loans, where people with a financial surplus occasionally lend money. It is an opportunity to obtain additional funds in return for the return in the form of security of ownership rights to a specific, valuable item. The pledged item is to be a guarantee of timely repayment of the contracted liability. When deciding on a secured loan, remember that the consequence of non-payment of the debt is the loss of rights to the property we have pledged. In order to obtain such a loan, clients have the right to deposit all valuables that will be accepted by the lender. It may turn out that the lender refuses to accept the item as pledge. This is the case with items that are excessively worn out, damaged or difficult to sell. The most frequently pledged items include: electronic equipment (both electronics and household appliances), jewelry, musical instruments, hobby accessories or a car.

Drivable title loans

Title loans are a convenient option for people with poor creditworthiness who do not have time for long formalities at banks. By borrowing against collateral, we are also sure that we will get the amount we expect. If the client would like to borrow a big amount of money and has a vehicle, it is not necessary to take out only personal loans or even bank loans. The potential client will probably be asked for a credit check or a certificate from the employer or bank statements if he applies for a loan in the bank. If we do not want to go through this process, a secured loan will be a good choice.

A novelty and an advantage over pawnshops in companies in this industry is that we can still drive a pledged car. Depending on the lender, we can get from 60% to even 85% of the car’s value. All this without checking your credit history and you can get cash even if you have a bailiff. Bad Credit Title loans are a much safer option than a mortgage of a flat or a house, so we suggest you choose this option. Thanks to this, even in the event of unexpected problems, it will not result in greater difficulties.

A few years ago, it was not possible to receive cash against a car and use it at the same time. Today, such a possibility in professional companies that deal with car title loans no credit check is a standard. If we were to lend the car to a pawnshop, the car would usually stay there until the loan was paid off. It is an extremely convenient option for people who have a profession, for example, a taxi driver or a supplier. In this case, you can mortgage the car and receive cash, and use the car at the same time.

Why is a car loan so popular?

According to information from analytical offices, cars are the most common item that stay in order to obtain a loan. This is because it is relatively easy to calculate the exact market value of a vehicle, which is often of significant amounts. Thus, depending on our current financial situation and credit history, we can count on obtaining a loan in the amount of 50% to 85% of the car’s value. Often, the possibility of repaying the debt is spread over several years, thus allowing us to freely use the borrowed cash. The popularity of a car loan is also determined by the fact that it is not as dangerous in its consequences as, for example, a mortgage. If the debt is not repaid, we must take into account the loss of the vehicle, which will undoubtedly be a significant loss for the household budget. Fortunately, it won’t be as embarrassing and dire as loss of home and eviction.

Where to get a title loan with bad credit?

Unfortunately, it is not possible to obtain a secured loan without checking the applicant’s creditworthiness. However, private investors and non-bank companies specializing in secured loans come to the rescue. They are more willing to lend, even to indebted people, the more so if the debtors allow the pledge option. An alternative is to go to a pawnshop, where vehicles should also be accepted – especially if they are popular brands. However, such a move is associated with many negative consequences and unfavorable solutions for the debtor. Mortgage in a pawnshop is very often extremely expensive, sometimes even unprofitable, and failure to repay the debt on time may result in the permanent loss of the vehicle. When considering the possibility of compiling a car at a pawnshop, you should be aware of the dangers of this option.

What does the title loan repayment look like?

Repayment of a car loan does not differ significantly from the repayment of other loans, but it should be remembered that the size of the installments, their number or the set date are determined by the lender. In the case of regular debt repayment, the entire process should run smoothly and without any problems. However, the situation changes radically if we are late in paying our debts. When we are dealing with a standard loan, the natural consequences of non-payment of installments are:

  • Re-entering the debtors’ databases – which in the future may have a negative impact on the chances of receiving another loan;
  • Increase in the cost of the loan and additional fees – these may be appropriate contractual penalties and reimbursement of debt collection costs, which is indicated earlier in the contract;
  • Court proceedings and bailiff – in extreme cases, it may be necessary to enforce the debt by the bailiff.

In the case of a specific loan against collateral (e.g. a car), the procedure is slightly different. The consequence of non-payment of the debt is the loss of rights to the property pledged by us, without the possibility of asking for its return after paying the entire debt. It will be possible to buy it for the estimated value, i.e. the amount for which the lender will issue it.

A car title loan online – how to apply?

Applying for a title loan is very similar to a regular payday loan. At the beginning, we provide contact details such as e-mail address, first and last name and data from the ID. The next step is to provide details of the vehicle that we want to pawn. It will be necessary to provide the year and make of the model, as well as the license plate number. After providing all the data, the application is sent. The adviser will contact you within a maximum of 24 hours.

What does title loan agreement look like?

When it comes to the contract and formalities of the car loan, they look less complicated than you might think. After submitting the application and a positive online loan decision, the loan company provides three sets of documents. The first is a loan agreement, similar to the one for loans without pledge. The second document is a car transfer agreement. It states that at the time of signing, the company becomes 51% of the owner of the car, and undertakes to transfer all ownership of the vehicle on condition that the loan is repaid. The last document is a power of attorney authorizing the lender to enter himself as the co-owner of the vehicle.

A title loan is an opportunity to obtain money for customers who cannot use the offer of a traditional bank. Even in the absence of an ideal credit history or the possibility of presenting a certificate from the workplace, thanks to this option you can get a loan with a longer repayment period and a greater amount than in the case of payday loans. Car title loans do not require complicated formalities, which is their undoubted advantage.

Secured loans without credit check – for whom?

It seems that using title loans is a great solution for people who need immediate cash, often for a large amount. However, very often this method is chosen by people who urgently need money and are not sure whether they will be able to pay off their debt. Thus, by agreeing to a secured loan, they bypass the possibility of submission to bailiff enforcement and decide on the possible loss of the transferred property. However, we advise that only those people who are sure that they will pay off the obligation should reach for this form of loan. If the vehicle is seized, you may still need to pay the debt. This means that the debtor will be left without money and without a car. To avoid this situation, it is worth using other loans, for example, installment loans for large amounts.

Thanks to title loans, you can get more cash

Companies offering payday loans can offer borrowers only a few hundred to one thousand dollars without any security, and at a high percentage. In turn, the bank requires a certificate of solvency in the form of an account statement, a certificate of earnings from work, a mortgage or a good credit history. It is completely different in the case of a company that grants a title loan. The car is the protection here. You can get up to 60% or 85% of its value with a repayment period of up to 10 years. It all depends on the specific company whose services are used. Such cash received on the account can be used for any purpose: renovation, purchase of household appliances or a trip.

Vehicle card loan

What is a loan against a vehicle card? Well, some loan companies provide financial assistance against this document. It looks like this: first we call the loan company, provide information about our vehicle and make an appointment with a representative. At the meeting, the company representative gives us cash in exchange for the vehicle card. As a document necessary to register the car, the vehicle card is in this case a guarantee of loan repayment. We get it back after paying off our obligations.

The advantages of a title loan

First of all, it is much safer than other forms of credit. A mortgage loan, in the event of repayment failures and any financial problems, exposes you to the loss of the apartment. In turn, payday loans require a quick return. In addition, money against the car can be obtained in the amount of more than $10,000. This amount cannot even be compared with the value of cash that the customer is able to receive in the bank.

Companies operating on our market offer loans against cars that can be driven. This means that despite the receipt of the requested amount, the car is still in use by the borrower. There is no need to pledge the car, so it does not become useless until the end of the repayment period. This is an extraordinary comfort for the borrower and a nod to him from title loan companies.

Where to apply for a title loan?

On the website of the companies that will provide it, there is a form that must be completed. Provide, among other things, your personal data, but also the car model, year, mileage and date of first registration. Thanks to this, advisers can pre-estimate whether it will be possible to borrow the requested amounts. You can expect to contact the company within 24 hours, after which the loan agreement is signed. It is followed by a transfer to your account and in fact, in a few hours you can enjoy the money for any planned expenditure.

In addition to the loan agreement against a drivable car, you need to sign two more documents. The first is the loan company’s transfer of 51% of the car’s value, along with the obligation to relinquish it after the repayment period. The second necessary document is a power of attorney enabling the lender to be entered as a co-owner of the car. However, it’s also possible to get a title loan without clear title.

Title loans – summary

Getting a car loan is much easier than getting a regular unsecured loan. The advantage of this type of arrangement is also the fact that we have a chance to receive a much larger amount, and that your credit history is not checked. As with any other loan, however, you should think carefully about whether we will be able to pay off the liability on time.

Credit Implications

Exclusions

Material Disclosure

Here`s a quick example:

APR Disclosure

Check your rates