Looking for bad credit loans online? If an individual needs extra money to take care of an unexpected emergency, can they get a title loan despite bad credit? Title loans generally offer quick cash and high approval rates, so could someone qualify with poor or even no credit?
Good news is with the right title loan you could potentially qualify for the financial support you need, even with bad credit!1
Best Loan Companies for Bad Credit
Wondering how to get a loan with bad credit? Rest assured you have several viable options available. When looking for some of the best loans for bad credit, here are a few options to consider:
- Payday Loans – A popular loan type that doesn’t require perfect credit history is a payday loan. With payday loans, almost anybody can borrow money and then pay it back when they receive their next paycheck. But payday loans have inconvenient terms if you don’t pay them back in full right away. Payday loans that aren’t paid back within a week or so can accumulate very high interest rates.
Before you get a payday loan make sure you are aware of every advertiser disclosure so you’re not stuck with a loan you can’t pay off.
- Credit Cards or Cash Advances – If you are having trouble finding loans for bad credit, you may be tempted to turn to a credit card. When used responsibly, a revolving line of credit like a credit card could be helpful during times when you’re short on cash. However, make sure you are able to pay back your balance in full every month to avoid racking up your amount due
- Personal Installment Loans – Unsecured loans like personal loans are also another funding option for people with less than perfect credit. Keep in mind though that loan terms, approval amount, and other loan details are usually informed by your credit score with these secured loans. So, if you’re looking for a higher loan amount, a personal loan may not be the right choice for you if you have poor credit.
- Title Pawns – People looking for loans for bad credit also have the option to pawn their car. With a title pawn, the borrower exchanges their vehicle for funding. Then, when they are able to pay back their loan, they can pay back the pawn shop and get their car back. While this is a fast way to get cash, if you rely on your car for everyday commuting, you may not want to pawn your car. Title pawns are best for people who do not use their car regularly and are comfortable with potentially losing it.
- Car Title Loans – Another way to use your vehicle to get cash is a car title loan. Car title loans are different from title pawns because they do not require the borrower to give up their vehicle. Instead, car title loan lenders sign onto the vehicle title as a lienholder so the borrower can keep their car as they pay back their loan. Coming with competitive interest rates and flexible terms, auto title loans are a fast and convenient funding option when it comes to loans for people with bad credit.
Get a Loan with Bad Credit
In order to qualify for a car title loan, a borrower must have reliable income and a valuable car. You must earn enough monthly income to repay your title loan each month, and your car must qualify as collateral.
Title loans typically accept various types of cars as collateral, but the amount of equity in the car must be sufficient. Equity is the difference between the current resale value and how much is still owed on the car.
During the title loan repayment process, a lien is placed on the car’s title. In the event that a borrower cannot repay their title loan, the lien allows the car to be repossessed and sold at auction to recoup the remaining money.
For this reason, the car is one of the main qualifying factors for a title loan. So even if you have bad credit, you could still be approved if your car is valuable and you can show proof of repayment!1
While title loan online lenders sign onto the vehicle title as a lienholder, this does not mean the borrower has to give up their car.
Do Bad Credit Title Loans Require Credit Checks?
When obtaining a loan, typically a credit check is required. There are two types of inquiries, soft credit checks and hard credit checks.
- Soft Credit Check: Does not alter your current score and generally does not show up on your credit report. Used to view your current credit report and prequalify you for lending.
- Hard Credit Check: Can possibly alter a score. This type of inquiry requires your approval and usually stays on your credit report for 2 years.
If you have bad credit but want a title loan, don’t be concerned. A credit check is necessary with any loan process but may not be used as a qualifying decision when it comes to most title loans.
Why Choose an Online Title Loan for Funding with Bad Credit?
There are plenty of benefits to be had with title loans. You could receive fast cash and a simple approval process.1 Take a look at some benefits you could look forward to with a title loan!
- Affordable Monthly Payments: You do not have to worry about missing payments because terms are personalized for you and your lifestyle.1
- Competitive Interest Rates: The interest rates with title loans are usually competitive, so your monthly title loan payments may be kept affordable!1
- Convenient Loan Terms: While title loans are considered short term loans, some title loan options offer longer repayment terms if needed!1
- Fast Process: Obtaining a title loan with bad credit may only take a short amount of time! The entire process may only take a few steps and you could receive your money in as little as one business day!1 3
Loans for Bad Credit | Unsecured Loan vs. Secured Loan
There are two main types of loans available to people with all kinds of credit: unsecured loans and secured loans. It is important to note that all lenders look at credit before approving any applicant for a loan, whether it’s a secured loan or an unsecured loan. But the role your score plays is quite different when it comes to these loan types.
An unsecured loan is funding that does not require collateral. Instead of relying on the value of property owned by the borrower, lenders for unsecured loans consider their credit score. The higher an applicant’s credit is, the more likely it is they will be approved for a high loan amount with reasonable terms and rates. While applicants with bad credit can also find approval for unsecured loans, their loan amount will probably be lower and come with interest rates on the higher side.
Secured loans, on the other hand, use collateral in exchange for funding. Because secured loans are connected to collateral, lenders don’t have to require high credit scores to grant approval for high loan amounts and competitive interest rates. If your credit score is very low or if you have no credit at all, a secured loan may be the smartest financial option for you.
Car title loans are an example of a secured loan. To get approved for a car title loan with bad credit, all you need is a vehicle with equity and a reliable form of income to pay back the loan.1 In fact, auto title loan lenders don’t really care about your credit score at all. All they usually do is check to make sure an applicant isn’t going through an active bankruptcy process.
What do I Need for Bad Credit Loans Online?
During the approval process for a title loan, lenders will ask for a few documents. Luckily, these documents are pretty basic, you might even have them on hand right now! To help the title loan process go even faster, you may want to gather these documents before you apply for your bad credit loan. Here’s what you will need:
- Qualifying Vehicle Title
- Government-Issued Photo ID
- Proof of Income
- Proof of Residency
- Photos of the Vehicle
Where Can I Get a Loan with Bad Credit Online?
Inquiring for a title loan with bad credit may be a wonderful financial option for you if you like convenience and a hassle-free process.
If you qualify for a title loan with bad credit, you could receive the financial support you need in no time.1 During the process, a title loan agent will contact you shortly thereafter to request some documents in order to verify your identity and given information.
Once your paperwork is in order, a title loan contract will be drawn up and you can sign for your money! Read over your contract and make sure you ask your auto title loan agent if you have any questions. Agents for title loans serviced by LoanMart are qualified and knowledgeable to help with whatever you need. Due to the quick title loan process, you can usually expect your emergency money within 24 hours after approval!3
Ready to apply for a loan? Title loan applications are fast and simple, it only take a few minutes!3 You can choose to proceed with the title loan process by inquiring online using the questionnaire form or by speaking to a loan agent at (855) 277-4847.