(Newswire.net — July 19, 2020) — Do you need immediate cash? Your bad credit is a roadblock in your life. When you don’t know where to look and raise cash fast, then car title loans should be your first choice.
Don’t Go with Traditional Loans
The bank is always a priority for people who want to get some urgent cash. However, when you have a bad credit issue, you shouldn’t go to a bank else. You have to face the scary challenges of traditional long term loans. Every bank performs credit checks, and when you don’t have a good credit score, then these frequent checks deteriorate even more. You may not qualify for the loan, but your credit score will be impacted. Thinking of getting a loan from a bank in a quick manner is nothing but a mistake. The whole process is not only very long but requires you to arrange many documents and files. When you want to get money with bad credit, then it’s better to skip the traditional loan facility and go directly to a lender who puts a great offer on your table.
Title Loan – A Secured Way to Get Money with Bad Credit
Many people start using their credit cards and go with payday loan options to meet their immediate cash needs. If you are planning to do that, you should completely understand the cost involved in those transactions. A payday loan comes with APR of 400%, while a credit card loan always comes with a high-interest rate. When you are tight on money then going with these two expensive options isn’t the right financial approach to use.
When it comes to Car Title loans, they are a structured and fair way of getting the money you always need. There is no need to worry about unusual loan terms or high-interest rates. As your car title is used as the collateral for the loan, therefore lender offers you a competitive rate. Your credit score is the least concern for him because the car title is valuable collateral that diminishes your lender’s default risk.
How Much Money Can You Get with Bad Credit?
The main requirement for car title loans is a lien-free title. If you are the car owner and can provide a title, you can attain the loan. As far as loan amount is concerned, you can expect to get 25-50 percent of the car’s market value. These days, lenders are trying to attract more customers. Therefore, they started offering car title loans without inspection. You don’t send your car for inspection, but only its picture. Once the market value of the car is confirmed, you get the loan amount in your bank account. Based on your car’s value, it’s possible to get a hundred dollars as the loan.
As far as credit check requirements are concerned, a car title loan is a modern secured loan that doesn’t need any credit score information. Your credit score won’t be impacted when you apply for this loan. Best of all, you can keep your car and drive it freely as you were using it before, only its title will be put on hold by the lender. Since you are getting a short-term loan, it won’t lock you in the debt cycle as it happens in the case of traditional car loans.