Is My Bad Credit An Issue With No Credit Check Title Loans?
No credit check title loans are an option to tackle emergency situations with short-term cash flow; however, those without good credit might pass up this option, thinking that their low credit scores will impact their chances of approval.
While applicants are considered on a case-by-case basis, bad credit isn’t a factor in title loans because they are secured by the inherent value in the car title. As such, you can still get no credit check title loans through Southwest Title Loans with bad credit.
If you’re struggling to stay afloat after a financial crisis, title loans are an option to consider for help in the short term. In this article, we’ll explore how bad credit affects the application process and how you can get started with your application today.
Does Credit Matter For Title Loans?
To understand the impact of credit on title loans, it’s important to highlight the differences between secured loans like title loans and unsecured loans. Unlike unsecured loans, which are sealed with a handshake and a promise (usually backed by a good credit score and proof of income), secured loans always require some sort of collateral to protect the interest of the lender.
Think of a mortgage, wherein the buyer is financing their purchase using the asset itself. To minimize the risk of defaulting, the lender places a lien against the property so that they have the legal right to repossess or foreclose in the event of defaulting.
As you can imagine, to the lender who is advantaged in this situation, credit matters very little. The same is true of no credit check title loans, which leverage the value of a car’s title in exchange for a lump sum of money.
The borrower receives money proportional to the value of their car, which they will pay off, plus interest, over the period of a couple years. Once fully repaid, the lien is removed and the borrower becomes the sole owner of the vehicle once more. Because the risk mitigation in secured loans is tied up in the title, credit doesn’t really have an impact on an applicant’s chances of getting approved.
The Importance Of A Lien-Free Title In Your Name
It does matter that the title is lien-free; otherwise, another entity has a legal claim against it, and the title serves no value as collateral. As such, if you’re going to apply for no credit check title loans, it’s important to make sure you’ve finished paying off your car and that you have no liens against it.
These can be issued by entities like dealerships, tow truck companies, and even the government, in rare instances. In any case, you need to pay off the lienholder and have they remove the lien before applying to get a loan.
Similarly, it’s important that the title of the vehicle is in your name. If not, you don’t have the legal wherewithal to use it as collateral. Name mix-ups can happen if the previous owner forgot to transfer the title properly. Check your paper or electronic title and make the necessary changes if applicable.
Other Title Loan Requirements
Aside from a lien-free title, you will also need to make sure you present valid state-issued ID. Anything from the list below is accepted:
- Driver’s license
- Student ID
- Non-driver’s license
You’ll also need to bring the vehicle associated with your title to the in-person meeting.
The Quick Application Process
Now that you understand why credit has little bearing on title loans, you can rely on this option when you need urgent cash for emergencies, like; bills, repairs, or business travel. Here’s how you can get started:
- Fill out our online form – Scroll to the top of this page and complete the online form that will ask you to provide some basic information about your car and select a store location.
- Expect a call back – A representative will call you when possible to schedule a meeting at the store or a location you choose.
- Go to the meeting – Bring your required items to the meeting (ID, lien-free title, car) and wait for the representative to finish the inspection.
- Get approval – After the assessment, you’ll be informed if you qualified for approval. If so, you’ll get the money the same day or following business day.
Get Your Loan Today!
No credit check title loans are available through Southwest Title Loans as soon as today! If you need urgent cash flow for a short-term emergency with urgent repairs, medical bills, or utility payments, we can help. Better yet, as long as you own your car outright, no credit checks are required! If you’re ready to find the right loan for you, fill out our online form on our website today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.