How To Get Money From Your Vehicle With Bad Credit

review terms with online equity financing
Written By Robert Davidson


Can I Get A Title Loan With Bad Credit

Bad credit is not something to worry about when applying for a typical title loan. This is very different from personal loans. Most short-term financing is not dependent on having a good credit score. This financing includes title loans, payday loans, and cash advances. There is no minimum or maximum score requirements at play when someone applies. Often it’s easy to get approval if you apply with one of the many lenders in Los Angeles, Anaheim, or San Francisco, to name a few. This occurs because the lender has met you in person. Some companies put added trust in meeting someone, which goes hand in hand with inspections for a car title loan.

Remember, most California title loan companies will require a vehicle inspection. A lender must see the car and ensure it has no damage before handing over the cash. This means you can not only get the vehicle inspection but also meet the lender face to face. Other equity finance companies will want to verify that you’re still employed and can pay back the loan. They may call your current company to verify your employment history and hours worked. The goal is to get a loan approved and ensure your credit score is not a factor in the lending decision.


Qualify For A Bad Credit Title Loan

Most lenders know that someone who needs a car title loan will have a poor credit score. In all likelihood, the borrower would be better off with a bank loan or installment loan financing. This type of borrowing requires good credit and other supplemental info that most people don’t have. Another reason to consider is that these online title loans are secured. On our homepage, you can view the different types of secured lending options in CA. We have recently updated our resources to better provide users with more information about how to best apply for title loans.

In California, a loan that has collateral tied to it is worth more to the original lender. Someone who takes out a $10,000 bank loan in Los Angeles must show a better credit report. Compare that to someone applying for a car title loan in Orange County with a vehicle valued at $15,000. These loans are similar, but the qualifying standards are much different because there’s actual collateral or equity available in the car.


A bad credit score doesn't mean you can't get a vehicle title loan.


Apply For An Auto Title Loan With A Good Credit Score

It’s easy to understand why a lender will need someone with good credit for an unsecured loan. We see the same pattern with an applicant who applies for a payday loan versus a bank loan or when they apply for a title loan with no job or employment verification. The person applying for a payday advance will have difficulty gaining approval for high amounts because of a lack of credit and collateral. Someone who applies for a personal loan from a bank or credit union will need to show a perfect credit score with no loans in default or bankruptcy. In a perfect situation, 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 high risk short term loans. Any lending company runs the risk of a fraudulent application or unqualified customer.


What Else To Know About Bad Credit Title Loan Lending Offers

Sometimes an online lender will need you to produce the most recent credit report. California has strict credit reporting laws and restrictions. Cities like Sacramento and Los Angeles have restrictions as well. When a lender requires a recent credit report, you may also need to show that you’ve been paying bills on time. Remember that recent car payments probably won’t apply here because the vehicle must be paid in full. The pink slip needs to have full equity 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 have to turn to bad credit title loans. Be sure to find a California lender that will work with you, and always stay in touch with them. You don’t want to fall behind on payments and risk having your vehicle repossessed!


Don't let your credit problems preclude you from getting a loan!