Bad Credit Title Loans
When you have a bad credit rating and are hit with unexpected expenses, financing options are limited. Fortunately, you may be able to get a title loan with bad credit. Let's take a closer look at how bad credit title loans work and why they can be a practical option when you need extra cash fast.
What is a title loan for bad credit?
A title loan for bad credit is a type of secured loan that uses an asset as collateral. Car title loans are the most common form. Since car title loans use your vehicle as collateral, most applicants qualify regardless of credit rating.
Title loan lenders don’t only consider your credit history since the value of your car is meant to cover a potential default. In other words, if you cannot repay the title loan, the lender can take possession of your vehicle to cover their losses. This means borrowers with bad credit can easily get approved.
One of the most significant advantages of a title loan for bad credit is that you can get the funds quickly, which is a must when you’re facing emergency expenses!
How much money can I get from a title loan for bad credit?
The maximum amount of money you can borrow with a title loan for bad credit depends on the value of your car and the lending company’s policies.
You must own your vehicle outright and have the title in hand to apply for a title loan. Since lenders offer loans based on a percentage of your car’s value, they need to personally inspect your vehicle to assess its value. Then, they can provide you with a specific dollar amount.
Our online title loan estimator can also give you an idea of how much you may be able to borrow based on your car’s make, model, and mileage.
Can I get a title loan with bad credit?
Yes, you can apply for title loans with bad credit because they’re secured with collateral. Essentially, the value of your car ensures your ability to repay rather than your credit history.
If approved for a title loan for bad credit, the lender holds onto your car title and can take possession of your vehicle if you can’t repay the loan. Because of this, there’s little risk of the lender losing money — and your credit doesn’t matter as much as it would with traditional financing options.
Once you pay off your title loan for bad credit, the lender gives you your title back. It’s as simple as that!
Benefits of title loans for bad credit
Bad-credit title loans have many advantages:
Applying for a title loan with bad credit is simple. First, make sure you have the necessary documents in hand when visiting a title loan lender. Requirements may vary by lending company but generally include your government-issued ID and car title.
Once you complete a title loan application, the lender will spend a few minutes inspecting your vehicle to assess its value. Depending on where you live, you may be able to start your application online before bringing your car to the store for appraisal. If not, the lender will have you complete the application in person.
One of the biggest reasons to get a title loan with bad credit is near-instant access to the money you need. Many lenders can give you the funds the same day you’re approved, so you leave with cash in hand. That’s a significant benefit if you’re trying to pay for an emergency expense.
Larger loan amounts
Since how much money you can borrow with a title loan for bad credit depends on your car’s estimated appraisal value, you can typically get a more considerable loan amount than you can with a cash advance or payday loan. You’ll also have more time to repay a title loan.
Keep driving your car as you repay the loan
Even though you’re using your vehicle as collateral, you can keep driving it while repaying your title loan for bad credit. The lender simply holds your car title until you finish paying off your loan balance.
How to apply for a title loan for bad credit
Applying for a title loan with bad credit is simple:
Choose a title lender
Consider which title loan lenders are available in your area. Then, when making your decision, compare their terms and rates, the loan application process, and storefront locations.
Gather all necessary documents and information
Since title loan decisions aren’t just based on credit history, it’s essential to have the lender’s required documents in hand when applying.
At the very least, you’ll need to bring your car title, government-issued ID, and proof of residence (such as a utility bill) to the location where the lender will appraise your vehicle. Certain states also require you to show your vehicle registration, auto insurance, and income.
Fill out an application for a title loan for bad credit
The application process for a bad-credit title loan is simple. In some states, you can even start the application online before completing it at the lender’s storefront location.
In many cases, you’ll fill out the application in person while the lender appraises your vehicle.
Get your car appraised
The appraisal process for title loans is quick and easy. When applying for a bad-credit title loan at Advance America, a store employee will consider the make and model of your vehicle, its mileage, and overall condition.
Receive your funds
After assessing your vehicle’s value, the lender will review your loan offer and finalize your application. You’ll often walk out the door with the funds in hand.
Is a title loan for bad credit right for me?
Bad-credit title loans are financial tools worth considering under certain circumstances. For starters, you must own your car outright and be willing to use the title as collateral.
But suppose you’re worried about your ability to repay the loan. In that case, it’s probably not worth the risk of losing your vehicle to repossession.
Consider your financial needs and budget before taking out a title loan for bad credit. Borrowing the money can help you get out of a tight financial spot, but is there enough room in your monthly budget to keep up with the payments?
A title loan for bad credit might be the right choice if your credit history leaves you with few financing options and you’re confident that the loan payments fit within your budget.
Get a title loan for bad credit today
Secure the money you need as soon as today with a title loan from Advance America. Borrowers with bad credit can easily get approved. And with our easy application process, straightforward loan terms, and conveniently scheduled payments, we can help you get back on track!