Can I Get Vehicle Title Loans If I Have Bad Credit?
Wondering if you can get vehicle title loans even with bad credit? The good news is that yes, you can. The last few years have been really rough. Many people lost their jobs during the pandemic, and now they’re facing soaring prices because of inflation. Not surprisingly, they were times when they missed payments or had to use credit cards to survive.
You got through the crisis, but now you may be struggling with a bad credit score. It’s not your fault, but it does make you more financially vulnerable. If there is an emergency—you need medical treatment, a big car repair, or your paycheck is late—you can’t get a bank loan.
Banks require a score of 610 to 640. If your score is lower, you have to find someone to co-sign the loan. They may also ask for additional documents to prove your capacity to pay.
Fortunately, banks are NOT your only option. You can get vehicle title loans even if you have a low credit score. Read more about it here.
What Are Vehicle Title Loans?
Vehicle title loans are secured loans where you use your vehicle title as collateral. You can borrow up to $15,000, and you don’t even have to give up using your car as long as you keep up with the payments.
Why Can I Get Vehicle Title Loans Even If I Have Bad Credit?
There are two kinds of loans: unsecured loans which are granted based on credit history, and secured loans where you offer security or collateral.
Unsecured loans are harder to qualify for because you have to establish your “creditworthiness” through a credit report, financial documents, and even your employment history. Banks are particularly strict about this now, because of the bad economy. Unless you have a high credit score, you’ll likely be denied.
Secured loans rely less on credit history because you are offering security or collateral for the loan. In this case, you are using your vehicle title. Since it is the main basis for granting the loan, your financial history is less important than making sure that the title meets the legal requirements.
When Can I Use My Vehicle Title To Get A Loan?
- The title is lien-free. “Lien-free” simply means a clear title. It is not being used as collateral for any other current loans, and there are no other legal claims or court judgments against it.
- The title is registered under your name. The title establishes that you are the legal owner of the vehicle. If you have lost the title, or if the title is under someone else’s names, you will need to visit the DMV to get it transferred to you.
- The car is fully owned. When you take out a car loan, the bank has a legal claim over the vehicle until the loan is paid off. If you are still making payments the title is not clear.
What Are The Benefits Of Vehicle Title Loans?
In a nutshell, vehicle title loans are an easier, faster, and more convenient way to get emergency cash.
- No minimum credit score. You can apply even if you have a bad credit history, or have not yet been able to establish a credit history because you’ve never taken out a loan before.
- Less paperwork. You aren’t required to gather many documents, such as income statements or proof of employment.
- Fast processing. Since you won’t need to endure extensive credit checks, your request can be approved on the same day.
- Non-restrictive. The lender does not actually get your car. Instead, a lien is placed on the title during the duration of the loan, and then lifted when it is fully paid.
What’s The Easiest Way To Get Vehicle Title Loans?
Now, you don’t even have to leave your home to apply for vehicle title loans.
- Fill out the online form on the Auto Cash USA website. This is a simple form, and the information is only used to connect you with the title loan lender that is right for you.
- Once Auto Cash USA connects you with a direct lender in your area, a loan specialist will give you a call. During that call, the specialist will explain more about the loan, and then calculate the loan amount you qualify for and the monthly payments you will be expected to pay.
- At that time, set up an appointment to meet for the vehicle inspection. verification of documents and the VIN number, and the signing of a few forms. This step only takes about 30 minutes.
- Once that is done, the loan specialist will email documents for your e-signature.
- And finally, the money is deposited into your account the same day or the next business day.
Get Emergency Cash—And An Opportunity To Build Your Credit
You can get vehicle title loans even with bad credit. And the good news is that if you take out the loan and make payments on time, you can actually improve your credit score.
While it’s hard to face a financial emergency that would require you to get a loan, this may be an opportunity to rebuild your credit while getting the cash you need.
Inquire now to find out if you qualify for vehicle title loans. Our direct lenders are waiting to help you today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.