For many lenders, your credit score is an important factor when reviewing your application. This means you might not get approved by most of them when you need cash urgently. One of the options you have is to apply for a loan against a car title with bad credit. This is a loan in which you use your car title as collateral when borrowing. Getting title loans with bad credit is easy because the lender only focuses on your ability to settle the loan at the end of the term. To apply, you need to offer proof of income. The lender will use this to calculate if you can repay the amount you seek. Typically, you will not be subjected to a hard credit check, so your credit score is not affected by this process. Approval for the loan will take under 30 minutes, and filling out the loan request form will take you less than 10 minutes. A title loan is ideal when you have a financial emergency, as you can get cash in under 24 hours. Besides, you can apply for title loans online on your mobile device or computer.

Can You Get a Title Loan With Bad Credit?

Before you apply for car title loans for bad credit, it’s important to understand what bad credit means. Bad credit refers to a credit score below 670. Specifically, if you have a score between 580 and 669 may be considered fair, while a score between 300 and 579 is poor. Below is a table highlighting the different credit scores and ratings.

Credit Score

Rating

300-579

Very Poor

580-669

Fair

670-739

Good

740-799

Very good

800-850

Exceptional

Despite bad credit, you can still apply for a title loan. There are many lenders who offer bad credit auto title loans if you need money to address an emergency. Simply find the right platform and navigate to their loan application page. Use the loan request form to submit your application. For direct lenders like AmericashPaydayLoans.com, you don’t need to worry about your credit score as the loan is secured. So, if you fail to repay the money, the lender can repossess your vehicle.

That’s why it’s advisable to confirm if your monthly income is sufficient to repay the loan without defaulting. Only apply for the money if you can comfortably add the bill into your monthly budget. Also, check the interest rates to ensure the loan does not end up too expensive to repay. Use an online calculator to know what you should repay.

» COMPARE: Title Loans With No Vehicle Inspection

What Is a Credit Check?

A credit check is when a company scrutinizes information in your credit report to know your financial behavior. The company does not always need your consent for this process, but there must be legitimate reasons (e.g., when you apply for a loan with them). As a part of the credit review process, a company may look at different information, including how much credit you have. Also, they may look at whether you paid back credit on time. In addition, the company will look at financial associations.

When talking about credit checks, it’s important to understand the difference between hard and soft credit checks. A soft credit check means an initial look at different information on your credit report. The company will perform this to know how successful the application will be without a complete examination of your credit history.

A hard credit check means when the company performs a complete search of your credit history. Each assessment performed is reflected in your credit report, so when a company does a hard credit check, this can affect your credit rating.

When you use direct lenders like America Cash, they allow you to access title loans with no credit check. These no credit check title loans don’t affect your credit score as they don’t include a hard credit check.

Qualification Requirements for Bad Credit Title Loan

To apply for a title loan, you must meet specific qualification requirements:

  • Age – Must be at least 18.
  • Proof of income – Attach a bank statement or pay stub to show how much you earn monthly.
  • Checking account – Important as it facilitates a way to transfer the money to you when approved.

While there are lenders who will approve title loans with no income proof, it’s important to ensure you’re not paying exorbitant interest. Confirm everything before you apply for the loan. Read all loan terms to know if you’re getting a good deal.

How to Apply for a Title Loan With Bad Credit

After gathering all the information required to apply for a bad credit title loan, the next step is filling out your application.

  1. Online Loan Application Form
  2. Before filling out the form, read all terms to understand what it means to borrow the money. Once done filling out the information, submit and wait for a response.

  3. Get a Response
  4. The lender will give feedback in under an hour. The feedback will include additional instructions to complete the loan application.

  5. Sign Documents
  6. Read loan documents and sign to agree to the loan terms.

  7. Get Your Money
  8. In the last step, the lender will send you the money to the checking account you specified.

Benefits of Bad Credit Car Title Loans

  • Short processing time – It takes under an hour to know about the verdict on your loan application.
  • No vehicle requisition – You can continue using your vehicle despite using its title as collateral when applying for the title loan.
  • No credit score required – No need to worry about a credit check or guarantor. The vehicle is an assurance for the loan, so the lender does not need to ask for a credit check.
  • Convenient payback scheme – You can negotiate a payback process that fits perfectly into your monthly budget to avoid defaulting on the loan.
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