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 about the equity in your vehicle versus 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 a bad credit title loan. The title loan company uses your car as collateral, and there's always a risk of repossession if you default on the loan. Of course, if payments need to be made, this puts a lot of risk on the lender, and often, the lender won’t make the loan unless they have collateral. Car title loans always have stricter approval requirements because lenders assume a lot more risk and pass on the cost to you with a higher interest rate.
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 title loan that doesn't require an excellent FICO score! Most low-mileage, newer vehicles in Arizona can be used as collateral for at least $2,000, and you can get 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 take applications online or by phone at 623-526-5001, so you can be approved and receive your loan proceeds as soon as one 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 loan 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 Title Loan With Poor Credit?
The main benefit of a title loan with bad 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, as they can get a bank loan with manageable interest rates. Others usually get these loans from title pawn providers and companies offering bad credit title loans with no income verification.
Online Title loan can pre-approve your application and sometimes fund your loan quicker than what's expected with a local lender, as it's much easier to process an application online. 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 title 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 for a title loan with bad credit. Local companies are willing to offer loans up to 50% of the vehicle's value. The amount you can borrow will ultimately depend on the title loan regulations in Arizona. Check the latest lending updates in the Grand Canyon state before signing a contract.
- Don't borrow more than you need for a financial emergency. Let's face it, title 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 Desert Title Loans at 623-526-5001 if you know a bad credit title loan is right for you. We offer pre-approval online or over the phone, and you may be able to borrow $200 or more without an extensive credit check. Apply now, and we'll let you know how much you can borrow with different payoff terms and monthly payment options!
