Bad Credit Title Loans – How To Qualify & Get Approved

 

When you need of fast cash, one great option is getting title loan with bad credit. Instant online title loans with same day cash are often available for borrowers with poor credit because lenders instead focus on the value of your vehicle when underwriting a loan. Of course, having good credit would be preferred and probably get you a better interest rate, but for the most part, a legitimate title loan company will likely approve you for a bad credit title loan as long as you have a newer vehicle with low mileage.

You must meet some requirements to get approved for bad credit title loans, but these requirements vary depending on the lender.

 

What’s Required to Get A Title Loan With Bad Credit

– You must have an active and clean auto insurance policy that covers the vehicle up to its maximum amount for which you will be using as collateral. This insurance coverage will protect yourself and others around you if anyone should cause injury to another person while driving your vehicle without your knowledge or consent. It also protects the title loan lender when the car is damaged or destroyed, and you can’t pay back the balance owed.

– You must have a fully paid off vehicle with a decent resale value. This is the most essential requirement and there’s no way to get around this. A lender wants to know that if you can’t pay back the loan, they will still be able to get something of value in return. To prove you have the actual pink slip to your vehicle, you will need to hand over the car title before getting your cash. You can still keep driving your car during the loan term, but the lender will want to hold your vehicle title as collateral for a bad credit title loan.

– You must have had your driver’s license for at least one year and you will need to show some form of valid ID in the state where you apply. You may also be required to show proof of present employment with a verified monthly income, by doing that you can demonstrate the ability to make future payments and not risk a title loan repossession.

 

How To Get Approved For Title Loans With Bad Credit

If you’re wondering how to quickly get approved for bad credit title loans online despite having no credit history, then you’ll be glad to see just how easy it is. You can get pre-qualified in under five minutes by filling out an application online or with any of the larger companies shown in our list of direct lenders. Whatever method you choose, rest assured it will be quicker and much easier than if you had applied for personal or installment loans, which often require numerous credit checks.

Once you’ve been approved for a bad credit title loan online, you can choose your ideal payment schedule. You’ll typically be able to choose between either having the cash wired to your bank account or having it given now to you in cash at a local lending office near you. If you’re near any of these offices, this might be an option that makes it easier to collect your money from a bad credit title loan company.

 

Consider a bad credit auto title loan if you don't qualify for other personal loans.

APR Or Interest Rates To Expect For Title Loans With Bad Credit

Most title loan companies will offer you bad credit title loans at an interest rate that is likely much higher than average since they are taking more risk by approving you for a more significant amount and the fact that you don’t have a good credit score. However, this doesn’t mean that there aren’t companies out there who will approve you for title loans with poor credit at reasonable rates. Title loans with low interest rates will be harder to qualify for but that doesn’t mean it’s always that way. It’s just important to prepare for the worst case scenario when applying so not being approved won’t surprise you.

From our research, we have found the best APRs range from around 36% to 50%, but those amounts can quickly climb over 100% if you have really bad credit and have dealt with multiple charge-offs or a bankruptcy in the past. You can see these high rates and fees clearly on their online title loan calculator or contact them directly to receive a personalized quote based on your vehicle details. Remember that these rates do not include additional fees and charges which may add to the cost.

 

Title Loans Can Improve Your Credit Rating And Score

Did you know there are some scenarios where taking out a title loan can actually improve your overall credit rating? Even though most title loan companies don’t check your credit, this is a real issue for most people who apply for traditional loan offers like personal loans and same day bank loans. It would help if you did all you can to improve your credit score and the good news is that some secured lenders will report your monthly payments that are on time to the different credit bureaus. Some credit agencies will report this is revolving debt and your credit score will show these payments are being made on time each month. It won’t take long to see some noticeable improvements in your credit score if you make online title loan payments!

 

What Else To Know About Bad Credit Title Loans & How To Get Started

It’s essential to know the basic title loan terms and conditions before you apply online or with your local company. If you know what fees, rates, and terms to expect then you’ll be prepared to pay off your bad credit title loan on time. Another important thing to consider is that it pays to make extra and early payments on your total loan amount. By paying more than the minimum you can quickly pay off a poor credit title loan and avoid huge finance charges that will add up each month!

We recommend that all consumers with bad credit check their vehicle’s current resale value before applying for a bad credit title loan. This is so important because it will help them determine if they are getting the fair market value for their car or truck. Suppose somebody has an older vehicle that isn’t worth anything. In that case, they might want to consider another financing option as it’s going to be difficult to get a bad credit title loan with a low value vehicle.

 

Reach out to multiple loan companies to compare bad credit rates for auto title loans.