Need a car title loan with bad credit? When you have bad credit, you may feel that obtaining a loan is virtually impossible. You may have tried banks or loan companies, only to be told that your credit does not qualify you for even a small loan. To add insult to injury, you may have had credit problems in the past and are trying to improve your credit rating for the future, yet it is like a vicious circle as you are unable to get a title loan in order to show you have improved your financial standing.
The first thing you should understand is how your credit affects getting loans from traditional lenders. The fact is that your credit score changes regularly. In fact, experts say that your credit score can go up or down by 20 points in one 90-day window. But banks and financial institutions rely heavily on your credit score when making the decision to lend you money or not.
The best way to raise your score is by obtaining credit and repaying it consistently above the minimum. It may be hard to believe, but staying in debt is an efficient way to grow your credit score. Check your credit score at www.creditkarma.com.
A car title loan with bad credit understands a potential risk but works out an agreement with respect to the vehicle’s value and the borrower’s income instead of solely on a borrower’s credit.
When you obtain a title loan, the loan company holds the title to your car until the loan is repaid. In most states, you must own your car outright with no liens against the title. There is usually no credit check, so you don’t have to be concerned that your score will be too low to obtain the loan. Some title loan companies will also report the paid loan to credit bureaus for you, helping to raise your credit score.
The borrower can use the car as normal for the duration of the loan while the lender holds onto the car title as collateral.
If you are struggling to get financing due to poor credit, help is available. Contact TFC Title Loans today via online or at 844-242-3543 to see how we may be able to help. A title loan may be your best option to get quick cash today and possibly even raise your credit score using a pink slip loan!
There are other options for you if your credit is poor. One of the options is a collateral loan where you use something of value to guarantee to the lender that you will repay the loan. One type of collateral loan is a motorcycle title pawn. If you have a secondary vehicle you can store, you can also try a title pawn which you can read more about at https://dbf.georgia.gov/pawnshops-title-pawn.