For some borrowers that are looking for an option between a personal loan or payday loans, a car title loan is a viable choice. Secured loans are the better option because your car title serves as a lien against your vehicle and credit is available to approve loans. Now you may wonder how they figure out your rate with a bad credit title loan. Any company like GoTitleLend that funds title loans can easily calculate your payments and figure the interest based on the time and resale value of your vehicle. Secured loans offer some security in these instances; unsecured loans rarely carry that security.
What’s Required For A Bad Credit Title Loan
To get a low interest rate with a title loan with poor credit it’s important to be current on loan payments and communicate with your creditors. Even though you can be approved for a bad credit title loan. Your credit history will affect your interest rate on a car title loan; higher credit scores will get you lower interest. Some people may claim that paying off this type of debt seems more of a positive way of reducing debt than just paying off the high interest loan. Verify this claim for yourself.
A credit score of 700 or more score is common these days and even that doesn’t guarantee you will qualify for many of the lowest rate personal loans. This number is important as that is the standard used to establish rates for approval of loans such as a car title loan or a standard pink slip loan. You should contact a credit rating agency to get a copy of your credit.
How To Get A Decent Interest Rate With A Bad Credit Title Loan
A recent auto title loan has recently been allowing lenders to enter transactions held within a specific disclosure window. This window allows borrowers to receive information about the rates and fees of their loan, upgrades, or payoff terms. The interest rate on a car title loan may vary from around 7% to 75%. Some may even offer rates at 28%; however, these are more commonly used with a typical bad credit score. It is doubtful that creditors may quote rates that low for any type of loan that uses a vehicle as collateral. You might have a lower rate on your car title loan than others. The bottom line, the APR will be high with any type of online title loan. It’s best to look at other types of loans near you before moving forward with a secured lender.
How Long Does it Take To Get Approved For A Secured Title Loan With A Bad Credit Score
In some cases, you can get approved for a title loan within a few hours. That means you submit the docs, hear back from underwriting and get your cash that same day! Another factor that can delay the approval process is the amount of time it takes to confirm payment amounts, monthly payments and interest. These regulations and requirements will sometimes depend on your state of residence and there are often delays out of our control. Some states have minimum interest rates of 20%. That is a mind-boggling sum of money. As another example, instead of finding a deal with only the annual interest rate, you find one that has the annual rate and other fees associated, such as the loan application fee, that has an annual interest rate of 19%. EACH brings down the cost of the title loan!
Perhaps the biggest pitfall to read regarding a title loan is that many lenders do not do your homework or even ask, let alone perform, a credit check. This article is but an example of predatory lending. You can be saved from taking your car title loan through these expensive and unscrupulous tactics if you conduct personal due diligence, especially on the lender you choose. Even if you cannot afford a payday loan or car title loan, this common practice will leave you in the worst situation. When you find a reputable lender, you will save your money.
What To Expect With A Bad Credit Title Loan From GoTitleLend
Car title loans are approved and processed faster than most of us would like because the borrower is given flexibility with a paid off vehicle! The standard term for a car title loan is 60 days. (60 days is not a month but a week). If you need your money sooner, you can get it much faster.
The most common use of a car title loan is to take a loan off an individual that owes you money. The money is taken from you in less than 60 days. When these types of loans are used, the title is held just like a mortgage or a home equity loan. These bad credit title loans are good for someone who otherwise wouldn’t qualify for an installment loan. In most situations, you need a credit score of 700 or higher to get a bank loan and that’s even with a high interest rate! Car title loans are also useful when the amount to be funded is in the thousand-dollar range and can be spread out monthly.
Negatives To Know About Title Loans With Bad Credit
There are some bad things you want to know about quick car title loans. These loans get approved very quickly because there are very few credit checks and income verifications to determine qualification. That means you need to take your time to investigate the lender as well as the financing terms. The biggest risk with a car title loan is that one who has a previous negative history with your bank can often walk away with a car and your car title too. This is especially true of those with bounced checks that bounced or those with insufficient funds.