It is not anyone’s desire to have a bad credit score. But it may hinder you from getting a loan quickly. It should not be an issue anymore. Bad credit title loans are simply ones you get access to whether your credit history is good or not. You only need to own a car. This loan requires you to produce a car title to the lenders as collateral. The lenders deposit the money in exchange for the title.
The lenders, upon verifying and giving you the loan money you requested, will retain the car title, and you will be required to repay your title loan within the agreed period plus the interest charged on the loan. Upon completion, you will get back your title. However, the interest charged on these bad credit title loans are usually higher than normal loans plus their payment periods are shorter.
How Bad Credit Title Loans Work
Bad credit title loans are loans available to individuals who have a poor credit history. Such type of loan is known to be high in terms of interest. Despite that, you are expected to pay the loans within a short time. In case you need credit, and you know well that you have a bad credit score, you will likely decide to take any available loan without considering the terms. At this point, bad credit loans will solve your problem.
To access these bad credit title loans, you must first select a lender whose terms you feel are favorable. It can be done online using your phone. You will send an application through RapidLoan.net and get a response with an estimated loan amount. The lender then requests you to avail of your car for inspection and sign the necessary documentation to complete the process. The lenders will automatically give you the amount of money you have borrowed after completing the application process.
When you agree to the terms of the loan, the lender will give you the requested money, and in return, the car title will be withheld by the loan lender up to the time when the loan is fully settled. However, you will continue using your car during this period as you repay your loan. Many lenders prefer the repayment period to be 15-30 days, although some may negotiate with you. The loan repayment may be made by automatic deduction from your bank account authorized by you or through the lender’s website. In cases where you fail to honor your payments, the lender can repossess your car and sell it to recoup its money back. Bad credit title loans, compared to other loans, are expensive, and if not carefully managed, they may mess your finances.
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Benefits of Bad Credit Title Loans
There are several advantages you can keep in mind:
- Quick money
- No credit checks
- Faster processing
- No guarantors needed
Bad credit title loans provide the loan money quickly. As compared to the traditional lenders, it takes quite a short time to have the requested money. For online title loans and bad credit, the process is even faster than you need to show up physically to process.
Сhecking for your credit score is not part of the process. It is because the lenders do not consider your credit score. You will be given the title loan anyway.
Depending on the lender, these loans are known for one special quality, the lenders process them faster than other loans and thus come in handy.
When you apply for the car title loan for bad credit, your car title acts as collateral, and there is no need to have guarantors for your loan.
How to Apply for Bad Credit Title Loans
When you want to apply for bad credit title loans, you need to follow simple steps to take as little time as possible. It would be best if you began by completing a form online by answering the simple questions asked, getting approval from the lender, and getting your cash.
The application process for bad credit title loans begins at a title loan lender store of your choice or online using your phone. You will be required to fill in an application, after which you will get a notification with an estimated loan amount. Thereafter the lender will ask you to bring along your car for inspection. After that, you will sign loan application documents and finally get your money.
In summary, during a bad credit car title loans application, most lenders expect you to have your car as collateral, proof of income to show that you will be able to service your loan, an identity card issued by the government, and a car title. Some lenders may even ask you for an extra set of keys. Most lenders for bad credit auto title loans will not check your credit score because your car’s title will act as security for your loan.
Requirements for title loans with bad credit vary depending on the type of loan you would like to get. The process is, however, the same. For instance, to apply for car title loans online bad credit, you should provide your auto title to get the loan. The value of your title allows you to borrow with bad credit. It is also necessary for you to have a regular source of income to enable you to repay the loan without fail. After getting the loan, you are still allowed to continue driving your car as usual until you complete paying your loan.
The Cost of Bad Credit Title Loans
Bad credit title loans are costly. They may have an interest of about 300% per annum. When you calculate this, then the interest rate per month is around 25%, which is very high. It is exclusive of other fees that you will be required to pay.
When Will I Get My Loan?
A bad credit title loan gives you rapid access to cash. The application process is fast and straightforward. Many lenders take a maximum of 48 hours to disburse your loan. Others may even take 24 hours as long as all the requirements are in place. Therefore you can get your cash in one business day in your nearby lending store or on your bank account.
