If you have a bad credit score and are in need of a car title loan with no credit check, it can be incredibly hard to know where to turn. The reason why it can be so hard to get a loan if you have bad or no credit is because credit scores is one of the major ways lenders decide whether or not a potential borrower is responsible enough to trust. Lenders exist that provide bad credit car title loans without the need for a credit check.
If lenders can’t trust you, they won’t feel comfortable lending to you, and that can lead you to not being able to getting the money you need when you need it.
Luckily, there are a few options when it comes to no credit check loans, one of the most popular forms of no credit check loans is a car title loan.
So what are no credit check loans?
No credit check loans are just what they sound like. They re loans that are issued without your credit score being taken into consideration. That means that a lender will not be checking your credit score or credit history before offering you a loan.
For people with bad or no credit, it’s a great method to getting emergency cash when faced with overdue bills, medical expenses, unforeseen expenses, and more.
Who needs a no credit check car title loan?
No credit check loans are most commonly used by people who:
- Cannot qualify for a traditional loan from banks or other lenders who require credit checks
- Want to avoid hard or soft pulls on their credit score (it can hurt your credit score)
- Need fast cash but do not have the credit necessary to get a traditional loan quickly
Why car title lenders don’t need to check credit scores
At this point, you are likely wondering why credit score checks are not necessary when it comes to taking out a car title loan. The answer is quite simple.
Essentially, car title loans are not unsecured loans, they’re secured loans. That means that the value of a car title loan is based off of the value that the borrower owns. In this case, it is most commonly a car. But it can be based on other vehicles as well, such as boats, RVS, ATVs, motorcycles, and more.
In order to take out a car title loan, all you have to do is trade in your title (which is the legal document providing proof of ownership). During the term of your car title loan, the title lender you borrow from will have a lien on your title. That won’t change the availability of your car, however.
You will be able drive and operate your car as usual throughout the term of your loan.
What I need to take out a car title loan
So if you don’t need to undergo a credit check in order to take out a car title loan, what do you need? There is a list of a few documents you’ll need and requirements you’ll need to meet in order to qualify.
- You need to be at least 18 years of age and have a valid government issued ID
- You need to have a lien free car title with you name on it
- You need to have proof of income
- You need to be able to provide proof of your vehicle’s value, usually through images or an in-person inspection
If you are able to provide these, you will likely be able to get your hands on a fast cash title loan within 24 hours of applying. And applying only takes a few minutes!
There are other types of bad credit loans, such as payday loans and cash advances, but these typically offer far less money than car title loans can (their max depends on the state you are borrowing, but can go up to $50,000), and can often have much higher interest rates.
One thing to keep in mind when pursuing car title loans is that when you are applying for this type of loan, because they are secured loans, your car is being used as collateral. That means that if you fail to repay your loan by the end of your payment term, you could risk having your car repossessed. If you are a responsibly borrower, however, you will not have to worry about that unhappy possibility taking place.
If you are in need of a bad credit loan, contact us at TitlePlan today and we will help you get the money you need when you need it! We can help you across a number of locations!