Have you struggled to get an unsecured loan because your FICO score is under 600? Or perhaps you don't have much of a credit history, and lenders don't want to risk offering you a loan? Most short term personal loans require excellent credit because your credit history tells them whether or not you've defaulted on loans in the past. Unsecured loans include payday loans, bank loans, cash advances and anything else where you don't have collateral backing up the money you've borrowed. So what about a bad credit title loan? Have you looked into how these loans work in California and what you need to get approved? With a title loan, you won't need to deal with a normal credit check; your vehicle's equity is used to determine a loan approval. Even with poor credit, you can still get approved for a title loan of $2,500 or more in California.
Often, it's easy to get approval if you apply with one of the many lenders in Los Angeles, Anaheim, or San Francisco, that offer car title loans. Most of these companies can underwrite your loan entirely based on your car as the collateral and you'll pay back the loan over a period of 12 to 60 months. Title loans are available for up to $20,000 in California, and you may be able to get your funds within one business day if you have all the required documents.
Remember, most California title loan companies will require a vehicle inspection and that's the case more than ever with a title loan that doesn't require good credit. A lender must see the car and ensure it has no damage before handing over the cash. You can still get approved for a bad credit title loan, but you'll need to bring in the car for an inspection so the lender can verify the VIN and confirm the current odometer reading.
Qualify For A Bad Credit Title Loan
Most lenders know that if you're applying for a car title loan, you likely have bad credit, so they don't check your credit score. For any title loan with poor credit, you need a lien free car title, which is used as collateral. The pink slip must be in your name, and no other lienholders must be shown on the title. Title loan companies will also want to verify income and confirm the car has current registration tags in CA.
In California, you can easily qualify for a title loan even if you have a FICO score of 650 or lower! The underwriting requirements are far less than a bank loan, where you must submit multiple documents and wait days to get approved. Compare that to someone applying for a car title loan in Orange County with a vehicle valued at $15,000. With that vehicle value, you can be assured of a loan amount of $6,000 or more, and it should take less than 24 hours to process your application!
Apply For A Car Title Loan With A Good Credit Score
What happens if you have a FICO score of around 700 but want to borrow more cash than an unsecured lender offers? At California Title Loans, we offer access to title loans of $10,000 or more. These loan amounts are much higher than you would get from a personal loan lender as your equity secures the higher loan amount! You can qualify for a title loan with no job or employment verification if you have equity in your vehicle!
Someone who applies for a personal loan from a bank or credit union must show a perfect credit score with no loans in default or bankruptcy. Ideally, any borrower would immediately qualify for an online vehicle title loan in California with low finance charges and decent terms. But that's not always the case with risky short term loans. Any lending company runs the risk of a fraudulent application or unqualified customer.
What Else To Know About Bad Credit Car Title Loans
Sometimes, an online lender must review your most recent credit report. California has strict credit reporting laws and restrictions, and other cities like Sacramento and Los Angeles have restrictions on how often a lender can check your credit. When a lender asks for a recent credit report, you must show that you've been paying bills on time. Remember that car payments probably won't apply here because the vehicle must be paid in full. The pink slip needs to show the car is titled in your name to be approved for bad credit title loans. You need to have it to hand off to the title loan company. If you have past issues with a bank or creditor, explain them to the lender.
Most companies that offer online title loans without a store visit will understand that issues arise, and those requirements shouldn't make it impossible to get approved. These loans have high interest rates for a reason, and those rates may work for someone who can't qualify for personal loans. They're set up for consumers with vehicle equity who otherwise have no other financial options and must turn to bad credit title loans.