Having a bad credit score or credit history may affect a person’s ability navigate the financial world. Getting a traditional loan may be difficult and that is why subprime loans exist. Subprime loans are loans where the eligibility is not necessarily affected by bad credit or bad credit history. These loans are available in the state of South Carolina in a couple different forms. Subprime loans may be a good option for residents of South Carolina who don’t have the best credit history.
Why Some People Consider a Subprime Loan?
Some people consider a subprime loan because of a few reasons:
- Having bad credit history
- Not having any credit history
- They may need quick funding for an emergency
- They have an asset that may get them more than a traditional loan
Types of Subprime Loans in South Carolina:
There are generally two type of loans:
- Secured Loan: A secured loan is where the lender has some sort of security in case the borrower defaults on the loan. This type of loan includes, mortgages and car title loans. For a secured loan the lender may not factor in poor credit history. Interest rates for secured loans tend to be higher because the lender is taking a risk.
- Unsecured Loan: An unsecured loan is a loan where the lenders do not have any security if the borrower defaults on their loan. Unsecured loans usually include credit cards, or payday loans. Unsecured loans are usually only given out to people with favorable credit history, and that is why interest on these tend to be lower than secured loans.
Subprime Loans or Subprime lending can be either secured or unsecured. Here a few types of loans that can be subprime loans:
- Credit Cards
- Personal Loans
- Car Title Loans
The Interest Rates of Subprime Loans
Interest rates on subprime loans can be higher, so it is very important to pay attention, and calculate the total amount it will cost before signing a contract. With subprime loans there are usually two types of interest the MPR (Monthly Principal Rate) and the APR (Annual Percentage Rate). The MPR is how much the loan will cost the borrower every month while the APR is the total for the monthly cost just shown in terms of the year.
Certain types of secured loans may have subprime lenders who may be willing to work with poor credit or poor credit history. So, if someone wants to find a subprime loan they should probably go with a secured loan for their funds.
Which Secured Loan Type is the Most Available Subprime Loan in South Carolina?
Generally the most common types of secured subprime loans are a mortgage and a car title loan. Ever since the financial housing crisis that occurred in the United States, finding lenders that give out a subprime mortgage may be difficult. An easier option may be to look at a car title loan.
What is a Car Title Loan and are They Available in South Carolina?
A car title loan is a type of subprime loan where a vehicle’s title is used as collateral. Some states in the U.S do not allow car title loans, however South Carolina does. In order to get a car title loan in South Carolina, a borrower needs a few pieces of information:
- A Government-Issued Photo ID (Driver’s license, passport etc.)
- Proof of Income (paystubs, bank statements etc.)
- Vehicle Inspection (some may ask for an in-person or an online inspection via photos)
- Lien-Free Title (registered to the borrower’s name)
- Proof of Residency (something like a utility bill or a copy of a lease)
Once these things are collected the lender may then go to places like Kelley Blue Book and determine the borrower’s eligibility. The lender will let the borrower know the value of the loan, the interest rate and come up with a repayment schedule1.
Why Use LoanMart When Looking for a Car Title Loan (Subprime Loan) in South Carolina?
- At LoanMart we service people all over the United States including South Carolina
- We have been doing this for a very long time, for over a decade, in fact
- The entire process can be done mostly from the convenience of your home via our website or phone at 877-787-4923
- Our interest rates are competitive
When looking at like a loan with bad credit a subprime loan may be a good option. There are several types of subprime loans that exist, they can be secured or unsecured loans. When taking out a secured loan it is extremely important to pay attention to the interest rates. A lot of the times it may be difficult to find a subprime loan that isn’t a car title loan. At LoanMart we service in South Carolina and offer you convenience and ease when looking for a car title loan1.