It can be an extremely frustrating experience to be in need of emergency funding but feel limited in your options because of bad credit.
It is true that one’s credit report does tend to follow you around everywhere because it is one of the biggest determining factors in big financial decisions. Sometimes it can feel unfair; like you are being judged so harshly from three little numbers. Even if you have bad credit, you still need options to turn to when you are in need of extra money.
Title loans marketed by LoanMart provide informative articles on various financial topics such as these. This article will explain the many loan options out there for borrowers with bad credit. After you are well-informed, you can make the best financial decision for your unique situation.
Loan Options for Those with Bad Credit in Texas
You might feel that you have limited options because of your score, but that may not exactly be the case. Some loans may not be available to you but there are tons that may be!
Here are some examples of loans that may be available to you regardless of the current state of your credit score:
A Home Equity Loan
If you have a mortgage and are a current homeowner, then this is a type of funding could work great for you. A home equity loan, or line of credit, uses the equity in your home as collateral for money you’d like to borrow. Since this loan uses the value in your property, your credit doesn’t hold the same weight during the inquiry process.
Personal Loan from a Credit Union
Even though most personal loans are hard to be approved for with bad credit, if you apply for one with a credit union instead of a traditional banking institution, then you may experience a higher chance of approval. Some credit unions can be more lenient in their inquiry process and allow you to use other qualifying factors to offset your score.
Payday loans are made for the very purpose of helping out those who have bad credit and need some emergency cash. To approve you for the loan, payday loan lenders use your recent pay stubs as proof of income so that they know you will be able to repay the loan. Since these loans are made for subprime borrowers, they tend to have some pretty high interest rates.
Car Title Loans
Car title loans are a secured loan which uses the title of the applicant’s car as collateral for the amount of money borrowed. This secured aspect of the loan is what makes the lender more lenient towards your credit in the inquiry process. And even though your car’s title is used as collateral, you still get to keep driving your car around like usual as long as you continue to make the monthly payments on time.
Qualifying Factors in Place of Credit in Texas
Here are a few examples of qualifying factors that lenders might use in place of your credit to determine your eligibility for a title loan:
Ability to Repay the Loan
One major factor during the inquiry process for a title loan in Texas is showing the lender proof of income. You need to prove that you make enough money to pay off the title loan through regularly scheduled payments dictated by the terms.
You can use a bunch of different documents to prove income in Texas, such as:
- Pension statements
- Social Security account statements
- Tax returns
Some Kind of Collateral
If you are getting a secured loan, like a home equity loan or a car title loan, then that asset will be used as collateral. And when you have collateral, the risk involved for the lender is decreased so your credit is not as important. The amount of money you are approved for in the loan usually depends on how much value is in the collateral.
Why Pick Title Loans for Funding in Texas?
If you would like to get a car title loan in Texas, look no further than title loans marketed by LoanMart1! They offer some of the most comprehensive benefits to customers so they can have the best funding experience possible.
Here are a few examples:
- Really quick funding as fast as the next business day1!
- Easy, all-online three-step inquiry
- Flexible repayment terms
- Awesome customer service!
- Very competitive interest rates and affordable payments
Start your inquiry today and you could get a loan despite having bad credit in Texas quicker than you think1!