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Is Good Credit Required For An Online Title Loan

Borrowing money has never been easy over the past few decades.  There have always been obstacles to getting cash but these barriers only increased as the internet became more popular.  Nonetheless, with the increase in online title loans we’re seeing more people become eligible for online loans.  The first step is to narrow down the companies that you’re willing to work with. We recently wrote about this issue. Many consumers are quick to move forward with the first lender they come across. We recommend to first read our article that contains a few tips on how to find the best car title loan company. With these new pink slip loans, you can now get cash for a boat title, motorcycle title and of course a typical auto title loan.  One of the longtime barriers of title loans has always been verifying credit history.   It is expected that for every instance of borrowing money, you need to submit documents proving your identity, credit history, and source of income. What made car title loans in Texas more attractive and demand is its lack of requirement for good credit rating.

Before detailing past credit issues, you have to go over the details regarding the application for auto title loans. In this way, you will decipher how easy money could be obtained from the service. This is a reason why people often consider online title loans as considerable choice for pink slip cash.

Credit Requirements have always been a part of online loans

Your typical online title loan is offered to someone who needs cash quickly and doesn’t have the money or resources to get a loan from a bank. In this service, you have to provide collateral, which is apparently your car.  As we’ve discussed throughout our site, there are also options for boat title loans and motorcycle title loans. This will be the lender’s security in case of default. Most of the time, the borrowers of this service are clients who have not been qualified for other financial options. It works with you carrying your vehicle and associated documents for its ownership. The Title Loan lender will then assess your car’s condition and confirm if your paperwork is sufficient for you to proceed with the processing of loans. When and if everything is verified, the funds will be released. Indeed, the lender has to keep your car’s title before granting your loan.

The limit of most online title loans can only reach 50 percent of the cash value of your vehicle. As a borrower, you will owe the money lent alongside with interests and other fees. You have to pay for the loan in a month and if you do so successfully, reclaiming the car title will then take place.

What Do You Need to Apply for an Auto Title Loan?

To obtain a car title loan, you also have to complete certain documents. For example in Texas, you will be able to get funds conveniently, efficiently, and quickly if you are 18 years or older. Moreover, you must have a driver’s license to prove that you are a resident of the state. Lastly, you must have a car title that has not been placed with liens previously.

You will notice that you do not need to present your credit history to get approved for a Texas-based auto title loan. Truthfully, most lenders of car title loan will not even check your credit. The verification mostly depends on the value of your vehicle.

What Is a Good Credit Score When It Comes To Title Loans?

If you are not familiar with having a good credit score, then you must learn a bit about it as well. A good credit score is often required in applying for other loans, particularly from banks or credit unions. Your credit rating will be fine if your score is 600 or higher. The range for credit score starts from 300 as the lowest and ends with 850 as the highest. With a high credit score, lenders become more confident, specifically to you repaying your debt and even consider you a candidate for other loan offers.  Even though having bad credit won’t necessarily preclude applicants from getting a title loan, it’s still imperative to improve credit.  A great resource to learn more about improving credit is the US Government’s site on Credit Issues.  Be sure to do all that’s possible before and after applying for title loans.

The firms making use of credit scores as bases are car dealers, mortgage loan providers, and credit card companies. They use in the decision-making phase, specifically to either give you credit or not. This is much the same as what happens when applying for car title loans. There are also cases that credit scores may be used as risk scores. You will encounter companies selling car or estate checking your financial score alongside your credit history. This is not the case with car title loans where there are even firms that will provide you the funds regardless employment history!

Although credit rating is not regarded in applying for a title loan, you can anticipate that the offer will be pricier than conventional bank loans. The range of interests will be from 25 to 50 percent of your car value. Annually, the fees will likely reach 360 percent. The costs may add up quickly depending on the state. Some states aren’t regulated, unlike Texas that also charge for processing, document, origination, and key fees.

Why You Should consider A Pink Slip Loan Over Other Sources Of Financing?

By considering a car title loan, you can get $300 to $15,000 loan regardless of your vehicle’s model and make. There are also lenders that even let you keep the car. We have a few different online title loan companies to choose from on our home page. In-store approvals are also available, which may take half an hour given you have completed the documents. Fortunately, most direct car title loan lenders are aware of unexpected expenses that people have to face when living from paycheck to paycheck.

The bottom line is, the best person who should apply for car title loans is someone who holds ownership of a vehicle. The said person must also be completely aware of the fees associated with the loan and get ready for the repayment process.