About 46% of Americans are having very serious financial problems because of COVID-19. Unemployment funds and stimulus checks only help so much, leaving many families in dire straits.
You’re looking at options to get extra cash just to make ends meet. You can sell some of your belongings, max out credit cards, and try to get a loan.
What if you have bad credit? Fortunately, there are car title loans for bad credit. Read on to learn more about them, how to get a car title loan approved, and what you need to know about them.
What Is a Car Title Loan?
A car title loan is a type of loan where you use your car’s title to get a loan. There usually isn’t a credit check because you’re using the car as collateral.
That’s good because your credit isn’t impacted by a hard credit inquiry. Lenders may use an income verification check to make sure that you can pay the loan back.
There is one thing you need to understand about using your car title as collateral for a loan. If you don’t pay the loan back, the lender has a right to repossess your car.
As long as you pay the loan on time, you shouldn’t have any problems with car title loans.
How Do You Get a Car Title Loan?
Does a car title loan seem like a good option to get cash quickly? Securing a car title loan isn’t that difficult. You do need to own the car outright.
If you still have loan payments on the car or you lease the car, it really isn’t yours to leverage to get a loan. You need to provide a lender with the title, your ID, car insurance policy, and proof of income.
How much can you get for a car title loan? It depends on the car and your income. The car title loan amount depends on the value of your car. If your car is a clunker, you won’t be able to get that much for the loan.
The good news is that you can still use your car, even if you are using the title as collateral.
Find a Lender
You can apply for online car title loans for bad credit, or you can look for retail lenders near you. You should check your local laws to see how title lenders are regulated. That will prevent you from taking a loan with very high-interest rates and fees.
Before you sign up for the loan, you need to read the terms of the loan. Look at the fees and when payments are due. Most car title loans are meant to be short-term loans. You do risk losing your car if you don’t pay the loan back.
Get Car Title Loans for Bad Credit
Times are tough for many families, and you have to look at all of your options. Car title loans are an option if you have bad credit.
Before looking at car title loans for bad credit, you need to make sure you own the car and find a good lender.
Visit the Finance section of this site for more financial tips.