With car title loans, lenders can offer quick emergency funds for borrowers with bad or no credit. It’s normally given for a pink slip that you must use as collateral. If you fail to make the necessary repayments on schedule, your car and its title will become the property of the lender. A pink slip loan is similar to pawning an item, except that many loan companies allow you to keep your vehicle while making repayments. On the other hand, pawnbrokers typically hold on to their collateral until the debt is repaid.
Getting Car Title Loans with Bad Credit
Normally, it’s people with bad credit who opt for a pink slip loan. Some car title loan companies will run a credit check before providing any funds, but bad credit is not a constraint for many loan firms since the debt is secured by borrower’s car title.
In order for you to qualify for a title loan, you must own the vehicle that is used as collateral and the vehicle must be nearly paid off or completely paid off. You will need to show proof of ownership as well as your repayments on the car loan before you qualify.
The lenders you choose may also consider your source of income and employment status when determining approval. They will usually offer you about 25-50% of the car’s value.
How Much Is Your Car Worth?
Before you apply for a car title loan, you must estimate the value of your used vehicle by yourself. The Kelley Blue Book (KBB) is a popular resource to know the value of a used car. This research tool will let you search for your car’s model, make and year as well as appropriate options to get the vehicle’s value.
The trade-in value will be the most informative value when approaching a lender because they will factor in this calculation to know how much they can afford to lend you. Estimating the worth of your vehicle will help you ensure that you can borrow the maximum amount possible on your car equity.
Use a Title Loan to Improve Your Credit Score
Title loans are secured because the lender is not at risk of losing any cash. By repossessing and selling your vehicle, the lender can cover the debt if you fail to repay the loan. But, as most lenders report to all 3 credit bureaus, borrower’s credit will become worse when they default on title loans. Consumer groups recommend that borrowers should be careful when they are making use of a title loan to improve your credit.
When you apply for a car title loan make sure you have a plan to make use of the funds sensibly and make sure you pay back the loan on schedule according to the terms and conditions in the loan agreement. Making payments on or before the stipulated day can reflect positively on your credit report and help you improve your credit score. Most times, the main reasons why subprime loan borrowers take this type of loan is because it can improve their credit rating.
By applying for online for title loans in Oregon, California, New Mexico and Arizona, you can get the money you need as quickly as possible and no one will ask about what you want to use the money for since it’s not part of their regulations. Some title loan firms will allow potential borrowers to input all of the information that is needed for approval on their website. Therefore, you may get approved immediately and your cash will be sent to your bank account