Are you dealing with a bad credit score and need to get a loan of $1,000 or more? Conventional lending offers probably aren't an option as they take up to a week to underwrite, and most require a FICO score of 700 or better. Payday loans are an option for anyone with bad credit, but they have sky-high interest rates, and loan amounts typically max out at $400. So why not look into a bad credit title loan that uses a newer low mileage vehicle as collateral for a loan?
A title loan with bad credit is possible for customers with vehicle equity, and you can borrow up to $25,000 sometimes. At Highway Title Loans, we offer fast approval and underwriting for these title loans, and you sometimes don't need to visit a store or lending location to get approved. Cash is available in less than 24 hours, and you'll keep the keys to your car, truck, or motorcycle for the full lending term.
Requirements For Car Title Loans With Bad Credit
To get a title loan with poor credit, you need a paid off car that's in your name and lien free. Some bad credit title loan companies will not even run your credit. They will check to ensure your vehicle works and inspect the car for any damage. Past that, you will need a photo ID, the title, and a bank account with direct deposit, which the loan funds can be dispersed into.
Many bad credit title loans can now be given out online, making it even easier to get money if needed.
There may be additional requirements for people looking for title loans with poor credit. Most of the time, this only happens when you have dealt with a vehicle repossession over the past year or if there's an active bankruptcy discharge on your credit history. A current bankruptcy may make getting a title loan with poor credit tough. However, you may still be able to get approved by sending in extra documentation to verify your vehicle and employment situation. That way, your lender can rest assured that there's still some equity or "collateral" available in the event of a default.
Title Loan Amounts & Terms With Poor Credit
Even with poor credit, there's still a decent chance you can borrow up to 60% of your vehicle's equity with an auto title loan. A car valued at $10,000 or more can lead to a loan amount of $6,000 without a standard credit check, and your loan amount can be even higher if the vehicle has low mileage and is in excellent condition. The average funding amount for bad credit title loans is $2,000, and some borrowers can qualify for more than $8,000 with newer high value cars and trucks. Are you only looking to borrow $2,000 or less with a title loan? If that's all you're looking for, then you're in luck, as there's a good chance you'll get approved even with a low-value vehicle. As long as you have a car worth $4,000 or more, you should qualify, and we'll go as low as $500 for a title loan in some states.
What about your interest rate and repayment terms? Like other equity loans, you can expect a high interest rate approaching 50% with any bad credit title loan. The repayment terms are up to you, and some lenders allow payoffs of up to 4 years. Remember, the more time it takes to repay your loan, the more you pay in finance charges.
Bad Credit Title Loans With Fast Funding - Know Your Rights
Laws regarding title loans with bad credit vary in most states and it's critical to know what the current regulations are before you move forward with a lender. Most states limit the interest rate and set a maximum loan amount, and your lender may not even tell you these limits or restrictions until you're ready to sign the contract! Review the title loan regulations in your state before applying for a loan. That way, you can avoid predatory lenders and save yourself a lot of hassle.
Did you know that some personal and installment loans can take up to 8 days to be underwritten and issued? Now compare that to bad credit title loans that fund within 24 hours. That is the power of using your car title as collateral instead of trying to get a loan based solely on your credit score. Credit scores take days, if not weeks, to change and sometimes months longer if your credit history is not ideal. But your car title is there for you when you need it, and it can be helpful to tap into any available equity. At Highway Title Loans, we look at multiple underwriting factors, and your FICO score is far down the list of required items for a title loan. The most important requirement for a title loan is that you have equity in your vehicle, and once you know your rights as a customer, you stand a good chance of getting approved for a bad credit title loan!
Choose the Best Companies That Offer Online Title Loans For Bad Credit
Many companies offer bad credit title loans, but like every industry, there are some that you should stay away from. Find a company like Highway Title Loans that offers bad credit loans from different lenders in your state. While not all states offer loans for your vehicle's value, most do, and it's important to know what you need to qualify, especially if you have a low FICO score! We'll take your application online or over the phone and connect you with a local company that best fits your needs.
Apply With Highway Title Loans
Are you anxious to see how much you can borrow with a title loan that doesn't require a credit check? Apply online with Highway Title Loans or call 877-433-5454 to start your application. We won't check your FICO score, and you can get up to $25,000 in one business day and all we need to know is your vehicle's value to get you a pre-approval quote!
Janet Patterson is VP of Marketing Communications for Highway Title Loans and the feature editor of its Lending Blog. Janet has worked in the financial service industry for over a decade, with 7 years of experience in the car title loan industry. She previously managed a customer service team that helped and advised consumers on all their lending related questions and concerns.