Bad credit is one of the largest epidemics in the United States today. The average amount of household credit card debt in the United States is more than $15,000, according to the United States Federal Reserve system. The bad debt problem leaves many debtors confused as to how they will make ends meet if an emergency arises. Several types of short-term loans may cross the minds of such people. The title loan is one of the most popular short-term loan types. Persons with bad credit may wonder if they can obtain title loans with bad credit.
What Is a Title Loan?
A title loan is a loan product that lenders offer people based on the value of their vehicles. To obtain a title loan, a person has to own a vehicle and be able to show the lender the proof of such ownership. Most title lenders do not request that a consumer have a good credit score because they do not count the score in their criteria. Instead, they place a lien on the vehicle. The lien ensures that the consumer will repay the advance, for the lender will have the right to recover the vehicle if the consumer does not repay the advance. The consumer will have to sign a contract that relinquishes his or her rights before the lender will provide the cash advance for that person.
How to Get a Title Loan With Bad Credit
Getting a title loan with bad credit only requires that the person apply for such a loan. The consumer will have to bring the vehicle along with the title to the vehicle for the lender to consider the cash advance. The persons will want to bring also a list of references because title lenders often require that consumers provide reliable references that they can contact to question about the consumer’s integrity.
The lender will assess the value of the vehicle by conducting a search on the make, model and year of the vehicle. The search will give the representative a figure that he or she can quote to the consumer. The consumer will then decide if the loan amount is acceptable. If the loan amount is acceptable, the lender will expect the consumer to sign a contract.
Title lenders usually expect consumers to repay title loans in approximately 30 days. The additional time is the main benefit of obtaining title loans as opposed to payday loans. To start the process, an interested consumer will need to contact a reliable lender. Search and research will disclose lenders who have positive reputations. The next step is calling someone and asking that person to process the application. Most title loan processing can complete within 24 hours, and the person can receive the deposit the same day.