Whether you have good credit or bad credit, getting a loan from a lender is usually a two-person job. Lenders want to see evidence of stable income, minimal debt and an ability to repay the loan in full. But that’s not always easy to come by. Especially for people with bad credit! A title loan can seem like an excellent way to get your foot in the door as a new business owner or small-business owner. You can use the loan as collateral for securing bank loans or use it to buy property, launch your new business and pay off other debts at the same time. Here are some things you should know when getting title loans for someone with bad credit
How to Get a Title Loan
Getting title loans with bad credit can be difficult, but it doesn’t have to be impossible. The best way to get a loan with bad credit is to apply early and often. You can try your luck with online lenders and banks, but they’re more likely to turn you down. The best bet is to call lenders and ask about their policies. Some of the most common reasons people get turned down for a loan with bad credit are: You didn’t pay your bills on time. This includes late alimony or Child Support, IRS Fines and WACVIP Accounts Payable. You didn’t make legal payments on time. This includes Child Support, IRS Fines and WACVIP Accounts Payable. You used a fake or deadbeat ex-spouse’s name on the loan application. You sent them money before the loan was approved. This includes paying your credit-card bill before the card was due, sending money through money-transfer services or otherwise making the loan payment in advance.
Things You Need to Know Before Getting a Title Loan
You’ll need to consider the following before you get title loans for someone with bad credit:
- How much cash do you have on hand? If you don’t have the cash to make the entire loan payment, the lender may ask you to send money to them in advance. This is called a “match” and it can prevent you from getting the loan.
- Are you able to repay the loan in full? The lender can see if you have the ability to repay the loan in full. If you don’t, the lender may rule you out as a borrower.
- Do you have a regular income? If you have a history of poor overall economic performance, you may be rejected as a borrower. A bad credit rating can hurt your chances of getting a loan.
A title loan is a loan that’s granted with the promise that the lender will use it as security for a mortgage on the property you borrow from them. While it’s usually a short-term loan, some lenders will also let you use the loan as security for a larger mortgage. If you have bad credit, getting a title loan can seem like a good idea. But before you apply, you should know about the requirements and considerations that lenders take into account when deciding who to approve for a loan.