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What to Do If You Need Cash Now with Bad Credit

Many people take out personal loans if they need cash to cover unexpected expenses or make big purchases. But getting approved for a traditional loan is not easy. Most lenders require applicants to have a minimum credit score to qualify for a traditional loan. This means you may not qualify for a traditional loan if your credit isn’t perfect.

Fortunately, there are other options available for people who need cash now with bad credit, including title loans. How does a title loan work? Can you really get approved with bad credit? Here’s what you should know:

What Are Title Loans?

A title loan is a type of secured loan, which means it is backed by collateral. To obtain a title loan, you must use the title to your car, motorcycle, or RV as collateral.

This doesn’t mean you need to give up your vehicle to get the cash you need. It simply means the lender will put a lien on the title to your vehicle until your loan has been completely paid off. But in the meantime, you can continue to drive the vehicle as you normally would while you repay the loan.

Need Cash Now with Bad Credit

Can I Get A Title Loan With Bad Credit?

The eligibility requirements for title loans and traditional personal loans are very different. If you are denied a traditional personal loan due to your credit, you may still qualify for a title loan. This is because a title loan is a secured loan backed by collateral, whereas traditional unsecured personal loans are not.

As a result, it is possible to get approved for a title loan even if your credit score isn’t perfect. As long as you show ability to repay the loan and have the title to your vehicle, you might qualify for a title loan.

Need Cash Now with Bad Credit

How Will A Title Loan Impact My Credit?

Taking out any loan, including a title loan, could cause a slight dip in your credit score. This occurs because you are accruing more debt, which negatively impacts your credit score.

Your credit score might take a hit in the beginning but taking out a title loan could actually improve your credit score in the long run. Why? Most title lenders report to all of the major credit bureaus, which are responsible for compiling consumer credit data. If you take out a title loan, every on-time payment you make will be reported to these credit agencies. Payment history accounts for about 35% of your overall credit score, so making on-time payments to your title lender could improve your credit score.

A title loan could improve your credit mix, too. The term “credit mix” refers to the variety of loans you have in your credit file. Taking out a title loan could diversify your credit mix, which may improve your overall credit score.

How Much Can I Get With A Title Loan?

You may qualify for a title loan even if your credit score has prevented you from taking out other types of loans. But how much will you be able to borrow? That depends on several factors, including: 

  •     Your Vehicle’s Value
  •     Your Equity
  •     Your Income

Your Vehicle’s Value

Because your vehicle is used as collateral, your lender will need to know how much it is worth before determining how much you can borrow. During the application process, your lender will calculate your vehicle’s value by evaluating its:

  •     Make
  •     Model
  •     Mileage
  •     Age
  •     Condition
  •     Trim level

You can use online vehicle valuation tools such as Kelley Blue Book to estimate the value of your car. You can also ask us for this information. It only takes a few minutes to contact us to find out if your vehicle qualifies, and if so, how much it is worth.

Your Equity

You may qualify for a title loan even if you are still making payments on your vehicle. But you must have equity in your vehicle to qualify for a title loan. You have equity if the resale value of your vehicle is greater than the amount you still owe on it.

For instance, if your car’s resale value is $8,000 and you owe $3,000 on it, this means you have $5,000 in equity. But if your car’s resale value is $8,000 and you owe $9,000 on it, you don’t have equity, so you cannot use the title to this vehicle as collateral for a title loan.

You cannot borrow more than the value of your vehicle, and you cannot owe more than the value of your vehicle. Your title lender will typically allow you to borrow up to a specific percentage of your vehicle’s value, so long as you have some equity.

Your Income

Another factor that could impact how much you are able to borrow is your income. Title lenders do not want to allow borrowers to borrow more than they can afford to repay. To avoid this problem, your title lender will ask you to submit proof of income during the application process. Your title lender will review these documents to confirm that you have a reliable source of income and assess your ability to repay your loan.

All of these factors can impact how much you are approved to borrow from a title lender. But in general, title loans may vary from $2,000 to $30,000.

Need Cash Now with Bad Credit

How Can I Apply for A Title Loan?

Don’t let bad credit stop you from getting the cash you need. If you are in need of fast cash, apply for a title loan with INeedCashNow by following these simple steps:

  1. Contact us. You can call 855-713-6522 or fill out the form on our website to initiate the application process. If you submit an online form, a loan officer will contact you shortly to discuss the next steps.
  2. See if you qualify. Your loan officer will tell you if you qualify for a title loan, and if so, how much you are approved to borrow. Your loan officer can also provide more information on other details of the loan agreement, including the term and interest rate. Feel free to ask your loan officer questions about the loan agreement to ensure you understand its terms before moving forward.
  3. Finalize the loan. If you are satisfied with the terms, you will need to sign the loan agreement. You will also need to submit certain documentation to the lender, including the title to your vehicle, your driver’s license, proof of income, and proof of residence. Your loan officer will explain exactly what needs to be submitted to finalize your loan.
  4. Collect your cash. You can choose how you want to receive your cash. You have the option of picking it up in person or having it sent to you via check or wire transfer.

Title loans are typically processed quickly, which means you can get your hands on the cash you need as soon as possible. In fact, some borrowers receive same-day approval1, so they get their cash on the same day they apply.2

1 Loan approval is subject to meeting the lender’s credit criteria, which include demonstration of ability to repay the loan. Not all applications will be approved.

2 Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 3PM PST on a business day.