Many people look to title loans, because they may make funding both fast and easy. If a resident of Covington, Kentucky, is looking for a title loan, they may be wondering whether or not a credit check is required. This will largely vary from one lender to the next, as title loan lenders all work differently.
Here is more information on credit checks with title loans, along with some details about a unique kind of title loan available to inquire about in Covington, Kentucky.
Why Do Some Title Loan Lenders in Covington, Kentucky Require a Credit Check?
Some title loan lenders in Kentucky and other states require a credit check because a credit report will give them a good idea of the applicant’s financial history and funding habits. It will also give them a good idea of how much experience the applicant has with lending.
For lenders who do not require a credit check, chances are that their interest rates will reflect that. Due to the risk, interest rates with lenders who don’t require a credit check may be higher.
How Will a Credit Check Impact the Borrower for a Car Title Loan in Covington?
If a person goes to a lender that does perform credit checks, it may impact a few things:
- The Borrower’s Credit (Depending on the Type of Credit Check)—If a lender does a hard credit check, then the applicant’s credit will be affected. However, when a soft credit check is done, there will be no impact on someone’s credit.
- The Interest Rate of the Title Loan—Depending on what comes out of the credit check, the interest rates might increase or decrease. This will be dependent on the lender, as they will decide the rate based on the assessment of someone’s credit history.
Will Credit Impact My Ability to Qualify for a Title Loan in Covington, Kentucky?
The flexible thing with title loans is that even if a lender does require a credit check, one’s credit score is typically not a huge factor with eligibility. This is because the lender has the security of the vehicle involved.
Instead of focusing solely on a credit score, the following are taken into consideration with a title loan:
- The Value of the Vehicle Involved—The value of the vehicle will be based on the make, model, year, condition, and mileage. The value of the vehicle will largely impact the value of the title loan.
- The Borrower’s Income—The borrower’s annual and monthly income will be looked at to determine the loan amount and repayment terms.
- The Borrower’s Ability to Repay—This factor will encompass income, expenses, and existing debt. This will impact everything from eligibility to repayment.
Even though credit history will not be a huge factor when determining eligibility for title loans, it is a good idea to try and improve it as much as possible. This is because as mentioned above, the applicant’s credit history will impact the amount of interest on the title loan.
Why Title Loans Serviced by LoanMart Are a Great Place to Start Looking for a Title Loan?
When looking for a title loan in Covington, Kentucky, one of the best places to start is with title loans serviced by LoanMart in Kentucky.
Title loans serviced by LoanMart are a unique type of funding, which have the same inquiry process as other title loans, but offer tons of unique, desirable benefits.
Here are a few differences to look forward to with these loans:
- Competitive Interest Rates—Title loans serviced by LoanMart start with highly competitive interest rates.
- Flexibility Throughout the Title Loan Process—Title loans offer flexibility throughout the process, from the inquiry to repayment. Look no further than title loans serviced by LoanMart for personalized terms1.
Do Title Loans Work the Same Way for Eligibility as Other Title Loans?
The great thing about title loans serviced by LoanMart, is that the eligibility requirements are the same as other title loans. And so, even those with bad credit are encouraged to apply1.
To get started on the title loan inquiry process, reach out to a loan agent, or complete the inquiry online.
When looking for a title loan in Covington, Kentucky, a borrower may be wondering if a credit check is required. Whether a credit check is needed for a title loan will depend on the lender— as some check credit, while others do not.
Even if credit is checked, the great thing about title loans is that credit is not typically the main qualifying factor for eligibility. When looking for a convenient and innovative title loan, start with title loans serviced by LoanMart1.