Title Loans, No Credit Check
Not everyone is a good candidate for a traditional loan. If your credit is less than stellar, you may wonder where to turn. If you’re considered a poor risk, lenders will be reluctant to extend a loan to you. Others may be willing but at extraordinarily high interest rates.
Perhaps the solution for you is to get a title loan. If you’re strapped for cash, a title loan allows you to put up your car as collateral and you can get money with a low interest rate. This is a great alternative to a payday loan. It’s important to know how to take advantage of these loans.
How to Qualify with No Credit Check
When you apply for a title loan, you don’t have to worry about going through a credit check to qualify. This type of loan doesn’t require any particular credit status as you are securing it with your own vehicle. Your car serves as collateral, which means if you default on the loan, the lender could take possession of it. As a result of this rule, the lender is at a much lower risk compared with lenders who extend loans to individuals with bad credit. Anyone who owns a car can apply for a title loan simply by putting their vehicle up as collateral to back it.
What are the Requirements for Title Loans?
Of course, there are certain criteria you must meet in order to qualify for a title loan. You already know there is no credit check required, but you will have to meet these requirements to apply and ultimately secure your title loan.
First, you must be at least 18 years of age to apply for a title loan. You must also have a steady stream of income. If you’re unemployed, unemployment insurance will suffice. If you are retired and receiving retirement benefits or if you’re on disability, those benefits count as income as well.
The title to your car must be yours, in your name only. It must be free and clear, meaning that you have to outright own the vehicle and not owe any money toward it.
You are required to provide proof of residency and proof of identity. You must provide proof of your home address. You can use a utility bill, pay stub or some other official documentation that includes your address. You should also have an official government-issued ID with you as proof of your identity.
Finally, you must also have an inspection done on your vehicle. In order to be eligible to apply for a title loan, your car must pass an inspection. You can also have the value of your car evaluated so that you know ahead of time how much money you might qualify for once it comes time to apply for the title loan.
How Can You Apply for a Title Loan?
When it comes time to actually applying for your title loan, you can expect the process to be relatively fast and similar to a visit to your local pawn shop. You must give the title of your vehicle over to the lender and provide proof of your identity by presenting your official government-issued ID.
Approval can take as little as half an hour. After you have been approved for your title loan, you are free to continue driving your vehicle like normal. However, you must make regular timely payments to pay back the loan or you run the risk of your car being repossessed by the lender.
If you are in serious need of fast cash, a title loan might be the correct option for you. Do your homework so that you understand all the prerequisites before you apply. You can qualify fast and get your money just as quickly.