Bad Credit Title Loans - How They Work
If you need money quickly, you might wonder, How can I get a title loan if I have a FICO score of 600 or lower? The answer is simple: your lender is more concerned with the equity in your vehicle than with your credit history.
A title loan is designed for people with bad credit, and most applicants can qualify quickly as long as there's enough security or "equity" available in your car's title. Someone's credit history becomes far less critical when a lender realizes there's enough collateral to fall back on if you default on the payment arrangements.
Your vehicle is used as security for the loan. Because your credit score is less of a factor, the lender relies on the vehicle's equity to offset the risk. This increased risk is also why these loans come with higher interest rates and, in the event of default, a risk of repossession.
Besides the high APR and risk of repossession, qualifying for a higher loan amount can be challenging if you're looking for semi truck title loans or other secured loans with larger loan amounts. Either way, we'll try to get you the best loan-to-value terms for your vehicle's equity, and many cars and trucks worth $5,000 or more can qualify.
Contact Desert Title Loans at 623-526-5001 to get a loan on your vehicle without an excellent FICO score. Most low-mileage, newer vehicles in Arizona can be used as collateral, and you can be approved and funded quickly if you have all the necessary documents.
Where To Get Car Title Loans For Bad Credit
There are a handful of ways to apply for a bad credit title loan in Arizona, and sometimes, you don't even need to leave your home to complete the underwriting process. Start with Desert Title Loans to cash out equity from your car, truck, or RV. We accept applications online or by phone at 623-526-5001, so you can be approved and receive your loan proceeds in as little as 1 business day. Others will apply in person, and there's no shortage of direct lenders offering loans for your vehicle's title in Arizona.
Sometimes, you can get cash through direct deposit or pick up the money in person from a local title loan company in Mesa or Flagstaff, just a few hours after applying. However you choose to get an initial estimate, you should know that your credit history is not nearly as important as the equity in your car. Don't worry about a low FICO score when you apply with Desert Title Loans.
Why Get A Vehicle Secured Loan If You Have Poor Credit?
The main benefit of getting these loans with poor credit is that you can get approved without a standard credit check. The interest rates are high with these collateral loans, and your lender has the equity in your vehicle to fall back on if you default on the payments.
People with good credit typically don't apply for secured loans because they can obtain a bank loan at a manageable interest rate. Others usually get these loans from title pawn providers and companies that offer bad credit title loans with no income verification.
An online lender can pre-approve your application and sometimes fund your loan quicker than a walk-in location, since the application is handled digitally. The downside to this option is that online lenders often do not report these loans to the credit bureaus. If you take out a loan with an online title loan company in Phoenix and don’t pay it off quickly, it can still appear on your credit report.
Consider These Factors To Get A Car Title Loan For Bad Credit In Arizona
If you know a vehicle-secured loan is your best option, the next step is to shop for the best lender that offers bad credit title loans. This is tricky; consider several factors before signing a loan agreement.
- Shop around for the best rates. Car title loan companies are willing to work with applicants with equity in their vehicles. Use that collateral when comparing quotes, and go with a lender offering the lowest interest rate.
- Be sure there are no hidden fees or additional charges. Only sign your contract when you're sure there are no additional fees for repaying the loan early. Also, look for balloon payments or pre-payment penalties that can add hundreds to your loan amount. Even with a low FICO score, you should be able to get a title loan or registration loan that allows you to repay the balance at any time.
- Find the best terms and rates. Local companies are willing to offer loans up to 50% of the vehicle's value. The amount you can borrow will ultimately depend on Arizona's title loan regulations. Review the current state lending regulations before signing any contract.
- Don't borrow more than you need for a financial emergency. Let's face it, these loans have high interest rates and you can end up paying thousands of dollars in finance charges over a few years. So if you have a high value car, you may be quoted more than you need for a cash emergency. Have your lender reduce the loan amount and, at the same time, ask them if they can lower the interest rate if you agree to a shorter payoff term.
Call Us at 623-526-5001 to start an application. We offer pre-approval online or over the phone, and we'll walk you through the estimated loan amounts, payoff terms, and monthly payment options based on your vehicle's value.
