Will Bad Credit Affect the Chances of Getting a Car Title Loan?
The question on many borrowers’ minds is, “How can I get a loan with bad credit?”
Bad credit has always impeded accessing loan by many consumers. While it’s safe to say that only a few people know their way around getting a loan with bad credit, we want to show you how to outsmart bad credit in getting a loan.
Personal loans can be either secured or unsecured loans; secured loans are otherwise called collateral loans which means you use any of your acceptable assets as collateral and the lender has the exclusive right to take over such possessions when you breach your agreement to repay. A car title loan is a perfect example of a secured loan.
Whether you are looking for personal loans in the form of a car title loan to consolidate debts, improve homes or take care of unexpected expenses, we have all the necessary information that will guide you on the right path to follow.
Definition of Bad Credit
What is a bad credit? Bad credit is a low credit score garnered over time due to late loan repayment, collection account, bankruptcy record and other problem attached to your loan history.
A low credit score can ruin your chance of getting a loan from multiple lenders as most of them check your loan acquisition and repayment history. If you have a poor record, lenders may flag your account and decline or disqualify your loan application.
How you can get a Loan with Bad Credit
There are many channels you can access to get a loan with bad credit. Some of the channels include;
- Family and Friends
Many times, your family and friends are your first contact point whenever you need financial aid. However, you must understand that everybody has their financial responsibilities which they are committed to, don’t be surprised if they end up unable to help you whether for genuine reasons or otherwise.
- Credit Unions
Credit unions are financial institutions with relatively smaller sizes and financial capabilities than a regular bank. Most credit unions will consent to grant you loans regardless of your credit score. However, most credit unions are community focused to better know more about the borrowers’ details.
- Peer to Peer Lending
If you belong to a peer-to-peer lending group, you can request for a loan which will be repaid over time. How peer-to-peer funding works and the amount of loan accessible is dependent on the rules guiding the establishment of such a group and the borrower’s commitment to the group respectively.
- Via a Car Title Loan
The number of people that patronized personal loans was reported to be 27 million in 2016. A large percentage of those borrowers got their loans from online lenders leveraging the use of their car title as security. Several online lenders make assessing a car title loan seamless. Their application processes are faster and readily accessible from anywhere in the world.
Of all the approaches used in online lending, a car title loan has proven to be the best alternative, and bad credit will not affect your chance of assessing a car title loan to answer your question directly.