When you find yourself holding an unexpected bill it can cause your stress level to rise. The last thing you need is more headaches. If you have no credit, or bad credit, you may be unsure what options are available to you. Fortunately, you may still be able to get funds through something like a small loan with an easy application process1.
What is a small loan?
A small loan, sometimes called a short-term loan, is a loan that borrowers can use for things like covering emergency expenses. Unlike something like a mortgage, you aren’t required to use whatever you are spending the loan on as collateral. There are two different types of small loans, unsecured and secured.
What’s the difference between a small loan that is unsecured and one that is secured?
The major difference between an unsecured loan and a secured one is that in a secured loan, the borrower has promised to cede something of value to the lender in the event that they don’t pay back the money they borrowed. The presence of collateral means a few things in the case of a secured loan:
- Borrower can potentially borrow more money than with no collateral
- Lender may be able to offer a lower interest rate than with no collateral
- Borrower can potentially lose their collateral if they go into default
Borrowers may receive better terms on their loan because the lender has recourse to recover their investment if the borrower defaults, they can repossess whatever was used as collateral. In the case of a car title loan, they may be able to repossess the borrower’s car for example. In cases of no collateral, the lender usually charges a higher interest rate to ensure that they make enough money to cover any losses from defaulting customers. As mentioned, small loans may be especially appealing to borrowers with little or no credit.
Can I get a small loan with bad credit or no credit?
You can1. While your credit score may be a factor in other types of loans, it plays a minimal role in your ability to get a small loan with LoanMart1. LoanMart is more concerned with the equity in your vehicle and whether or not you are able to pay your loan back.
How do I use my car to get a loan?
If you have a car with a qualifying title, you may be able to get a car title loan from LoanMart1. It’s a type of small, secured loan that uses your car title as collateral. This means that you’ll be able to keep and use your car during the life of the loan, just like normal.
What do I need to get a car title loan?
There are only a few documents you’ll need to apply for a car title loan with LoanMart:
- Qualifying car title in your name
- Proof of income
- Proof of residency (certain pieces of mail)
- Government-issued photo I.D. (like a Driver’s License)
- Several photos of the vehicle
Most car title loan companies also require that you bring your car in for an in-person inspection. A lender like LoanMart doesn’t require this however. They understand that not all borrowers have the time to bring their car in. Because of this, they typically let customers submit photos of their car.
What is proof of income for a car title loan?
Many people believe that they can only use a paystub as proof of income for a car title loan. In reality, there are a number of different options you can use to show proof of income to LoanMart. For example:
- Bank statement if you are self-employed
- Social Security benefits
How much money can I get for a car title loan?
The amount of money you may be able to borrow for a car title loan depends on a few different factors1:
- Total income
- Equity in your car
- Loan terms
The two most important things are your income and the equity in your car. Ultimately, these will determine how much money you may be able to borrow1. A reputable lender will not generally give a customer a monthly payment that is greater than they can afford.
What are the benefits of getting a car title loan with LoanMart?
There are several great reasons to get a car title loan with LoanMart:
- Low repossession rate – LoanMart understands how much their customers value their cars. Because of this, LoanMart only uses repossession as an absolute last resort. If a borrower is having trouble paying back their loan, LoanMart representatives try to work with them to find a solution.
- Simple Loan Terms – LoanMart never includes balloon payments or prepayment penalties in their loan terms. The principal is divided across the monthly payments, never kept till the end. And if borrowers want to pay their loan back early to save on interest payments, LoanMart encourages them to do so.
- LoanMart Peace of Mind Guarantee1 – LoanMart understands how stressful it can be to be holding an unexpected bill. Because of this, if a borrower changes their mind, they can give their car title loan money back.