A sudden bill or expense can knock the wind out of just about anyone. It can leave anyone wondering what they will do in order to take care of this immediate concern and get themselves financially back on their feet.
If you have poor or no credit, you might be concerned about getting approval for a car title loan. But don’t worry, most title loan lenders doesn’t really even care about your credit score. When we assign approval for car title loans, we care much more about the equity of the vehicle and ability to repay the loan.
Getting a Car Title Loan Without a Credit Check
There is no way to get a car title loan without the lender doing some kind of credit check. However, the upside of this is that even though the lender does look into potential borrowers’ credit history and current credit status do not use the information they get from these as the sole or even main criteria in determining whether or not they will provide them with a car title loan1.
When determining an applying borrower’s approval status, even though a credit check is performed, the title loan lender is more interested in whether or not they are able to show us the following things:
- A qualifying car title that is made out in the applying borrower’s name
- A government-issued photo ID such as the customer’s state ID or driver’s license
- Proof of residence (recent mail like a utility bill is fine)
- Proof of Income (like a paycheck stub, invoices, or bank account statements) which will show the applying borrower’s capability of repaying any loan we would provide for them
- Several photos of the car being used for the car title loan
If all of these documents are given to us, we may be able to give approval for a car title loan1.
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.
If a resident of South Carolina is looking to get a loan they may be curious about the options that they have in their state. In South Carolina auto title loans are available as a loan option for its residents. Every state has its own set of rules/regulations/laws with every type of loan, including auto title loans. If an individual is looking to get an auto title loan in South Carolina it may be helpful to know about the process of a car title loan along with the specific rules that South Carolina legislation has in place.
What Makes an Auto Title Loans Different From a Traditional Loan?
An auto title loan is simply a different type of loan than a traditional loan. Generally there are two types of loans:
- Secured Loan– The lender has some sort of security in case the borrower defaults on the loan. For example in a mortgage the security is the house, in auto title loan, it is the car.
- Unsecured Loan– The lender does not have any type of security if the borrower defaults on the loan. These are the most common types of loans out there. Examples of unsecured loans include credit cards or student loans.
Because these loans are so different in how they function, they have major differences in what they offer to the borrower:
- Interest Rates – Secured loans may have much higher interest rates than unsecured loans.
- Credit Checks – For secured loans like auto title loans, the lender may not need to check credit history or factor in bad credit. While with unsecured loans credit may play a big role in determining eligibility.
The Ins and Outs of Auto Title Loans:
An auto title loan is commonly known as a car title loan, a title loan or a pink slip loan. How it works is that a borrower puts down their vehicle as collateral. No matter what state a potential borrower lives in there generally a few things that they will need in order to be eligible for an auto title loan. If a borrower goes through LoanMart we will ask for a few things1:
- A qualifying Vehicle
- A qualifying Title
- Government-issued Photo ID
- Proof of Income
- Proof of Residency
- Several Pictures of the Vehicle
Once LoanMart has all of this information, they will come up with a value for the vehicle, along with an interest rate and repayment schedule1. The convenient thing about car title loans is that once the process is complete the lender may give out the money in as little as twenty four hours3. At LoanMart we try to make this process as easy as possible. We can get the process started in only a couple minutes and work with your specific information to possibly come up with a value for an auto title loan1.
How Much Can I Get On An Auto Loan In South Carolina?
The amount a borrower may get in the state of South Carolina depends on a few things. The first and possibly the most important factor in determining the value of an auto title loan is, the value of the vehicle. Lenders will also take into consideration the borrower’s income along with their ability to repay the loan.