How to Get Cash with Poor or No Credit
If you find yourself in need of cash, the last thing that you want to do is jump through a bunch of hoops trying to get an approval from a bank. Emergencies happen, and when they do people need a way to get cash fast that doesn’t involve a bunch of red tape or a credit check. According to a recent study conducted by BadCredit.org, approximately 16% of Americans have very poor credit (a FICO between 300 and 579). Unfortunately, those with bad credit scores either don’t get approved for loans or get approved for a loan but with an extremely high interest rate and/or difficult loan repayment terms.
Car title loans for individuals with bad credit or no credit have been immensely helpful for those in need of cash. Not only does a title loan bypass all the credit checks of a traditional loan, it can also provide the borrower with the cash they need in as little as twenty minutes.
What Is a Title Loan?
The car title loan is still a loan. However, the big difference is that the loan uses your car as collateral rather than using a credit score to assess risk. Since the loan is secured on the car, there’s no need to do a credit check on the individual. You, as the borrower, simply need to prove that the car title is in your name and that it is free and clear of any liens.
What Are the Steps to Getting a Car Title Loan?
Getting a car title loan is generally a simple three-step process.
Step 1 – Bring in your car with a valid ID.
Step 2 – Fill out some basic application paperwork while your car’s value is determined.
Step 3 – Sign off on your loan, receive your cash, and drive away in the car you came in.
How Much Can I Borrow Using a Car Title Loan?
Your loan is going to be completely determined by the value of your car. During your application process, a representative of the car title loan establishment will inspect your car to make sure everything is in good working order. Once they’ve determined a value of the vehicle, they can then provide you with a maximum loan amount that you can take out based on the car’s value. The maximum loan amount varies by state, however, it generally tops out around $5000.
Remember, you don’t have to take out the full loan amount that you’re approved for. Only take out what you feel confident you’ll be able to pay back.
What Can I Use My Car Title Loan Money On?
The beauty of getting a car title loan is that you can use the cash on anything. For most people, the cash is generally applied to an emergency situation such as a medical bill or unforeseen expense like a broken water heater. Car title loans don’t require you to spend the money a certain way. You can buy groceries or back to school clothes if you want to. What you do with the cash is completely up to you.
Will a Car Title Loan Help My Credit Score?
Unfortunately, no. Since you’re getting the loan using your car as collateral, paying the loan back will have no effect on your credit score. If you have bad credit or no credit, look into something called a credit-building loan. You can also apply for a low limit credit card that will allow you to build up credit through making regular payments. These options will eventually allow you to build up your score, but lack the immediacy and minimal paperwork that a car title loan possesses.
What Happens if I Default on My Car Title Loan?
A car title loan uses your vehicle as collateral. In the event that you’re late on your loan payments, you’ll incur late penalties as detailed in the verbiage of your loan agreement. Fully default on the loan, and you will effectively lose possession of your vehicle and it’ll become the property of the title loan company. When taking out your loan, be absolutely sure you can handle the repayment terms.
Apply for Your Car Title Loan Today!
If you’re in need of immediate cash, Kansas City title loans are available in your area. In order to get started, make sure that you have a clean and clear car title when you go into your nearest title loan location. The representatives can inspect your vehicle and have you in and out with the cash you need in as little as twenty minutes.
Angela is a senior editor at Dreniq News. She has written for many famous news agencies.