With rebuilt title loans being more popular, its good for people looking to get one to have some background on rebuilt title loans and how they work. Our clients that apply for cash with GoTitleLend will typically have a newer vehicle that’s paid off. But that doesn’t mean you can’t qualify for funding on loans for rebuilt title cars.
What is a Rebuilt Title Loan?
A rebuilt title loan is when you take out a car loan based on the market value of your rebuilt car. When a vehicle is involved in an accident, the insurance company will evaluate the car’s condition. They look at how much it would cost them (meaning what price they could resell the car for) and then deducts that from the worth of your rebuilt car. That amount becomes your new monthly payment for a car title loan. While this may sound like an appealing way to lower your monthly payments, be aware that these rebuilt title loans can come with high interest rates, usually around 30%-40. The amount will sometimes even be lower than that because title loan companies don’t want to offer cash for vehicles that aren’t worth much.
Many of these rebuilt title loans are worth far less than what you would see with a typical vehicle title or even a salvaged vehicle title. The value is so low with a rebuilt pink slip because rebuilt title loans are typically only offered for rebuilt cars with a rebuilt title.
A rebuilt title is a special type of salvage title that a car receives when it has been repaired and deemed safe to drive. However, many people don’t understand what these titles mean and end up getting taken by companies offering rebuilt title loans.
Before you get your hopes up about the low monthly payments from a rebuilt vehicle title loan, make sure to read this article on how they work and if they’re right for you! The more informed you are about the process, the less likely it will be that you’ll sign yourself up with an interest rate you can’t pay off later on down the road.
Can I Qualify For Rebuilt Title Loans With Bad Credit?
The answer to this question is very important. Having rebuilt title loans will not improve your credit history, but making on time payments can actually lead to your score increasing. If you have a low credit score or a bad history with repaying previous rebuilt title loans, most companies that offer these types of loans won’t even consider you for the loan, Most likely because they know that once you sign up with them, then would be responsible for paying off your loan in full instead of having someone else take care of it.
Combining rebuilt title loans with another car owner is highly recommended in order to make payments on time otherwise the company will report you as late or missing payment(s) from the lender’s end. In terms of rebuilt title loans where you don’t have the money to make your monthly payments, the next step is to contact your lender and worth out an appropriate payment plan or even negotiate a title loan refinance. Whatever method you choose, it’s critical to stay in contact with your financing company.
What Are Other Features To Know About Rebuilt Title Loans
When you own a rebuilt vehicle with a paid off car title, there are some companies that will not want to finance your loan. This is because rebuilt title loans can be more difficult to acquire from certain lenders thus creating higher interest rates and fees just for the added risk of issuing this type of vehicle a rebuilt title loan. In addition, if during the time you get rebuilt titled cars making monthly payments on time while having rebuilt title loans, then repairing your credit score is highly important in order for you to reestablish yourself with rebuilt title loans again.
What Is The Process Of Acquiring Rebuilt Title Loans?
Typically when applying for rebuilt title loans, the company may require a copy of the former owner’s certificate which will state whether or not they paid off the loan in full. This means you must show a pink slip that’s fully paid and you can’t have any liens or other damage to your vehicle. Many customers can qualify for an online title loan in less than 24 hours and that includes cars with rebuilt titles! Feel free to apply with us today by using the GoTitleLend online application and you can expect to get an approval notification in a quick period of time.