If you have bad credit, don't fret; you're not alone. About 56% of American consumers, according to a report from the Corporation for Enterprise Development (CFED), have subprime credit scores. This means their credit score is below 620. Millions now suffer with bad credit since the Great Recession started in 2007. The economy, although on an upswing, is leaving the middle class behind. If a financial emergency occurs, will you have the money to cover it?
Rebuilding your credit should be a priority. If you don't know your FICO® Score you can order it for a buck at Experian. But, you need to cancel it before seven days or they'll charge you $21.95 every month. If you think you'll forget to cancel, your best bet is to get your free credit report and begin to repair your damaged credit. It takes time and patience, so if you need money right now you might want to consider title loans with no credit check.
Can I Get a Title Loan with Bad Credit?
It can be frustrating to be denied a loan from a traditional bank, that's why a Title Loan may be an option for you. If you own your vehicle or have any equity in your car and still make payments, you could use it as collateral to get a loan. The convenience and speed to get funded with these types of loans is guaranteed to be your best option to escape your bad credit borrowing ability.
What Are These No Credit Check Title Loans?
Title loans are secured loans. This means the lender has the title of your car, truck, motorcycle or RV until you pay your loan back. You get to still drive your vehicle and the lender gives you cash for the vehicle's value. Keep in mind that your income has a large impact on how much your loan will be. For example: Your car could be valued more, but your income is too low to make payments that you can afford.
Why Are Bad Credit Title Loans Becoming More Popular?
Title Loans get you the money that you need now and you don't have to wait months while you're in the process of fixing your credit.
Here are some of the many advantages:
- Bad credit is not a problem
- Financing for any vehicle make or year
- Get the money you need quickly
- Simple and fast approval process
- Keep driving your car
- High approval rates
- More cash with secured loans
- No penalties for early payment
How Much Can I Get for a Title Loan?
Some lenders will loan up to $50,000 if the value of your vehicle and your income support it. To get a general idea you can look up the value of your car, then know that most lenders use around 60% of the average trade-in value. That's as good a place to start as any. Then you have to consider your net monthly income, that's the amount after taxes. Most lenders will not lend you more than 30-35% of your monthly income. It's a good number to keep your payments affordable.
Tips on How to Get 1 Month Loan No Credit Checks
Not all lenders are created equal and shopping around for the best interest rates, good reviews and locations can be accomplished online. Here are some other things to consider when deciding where to take your business.
Looking for a Lender
When you look for a lender, you should find one that's reputable. A local brick and mortar is your best option. Most companies require a visual inspection of your car to verify the vehicle identification number (VIN) on your application and to confirm the condition. Ex: If your vehicle doesn't run, you probably won't qualify for a loan.
What's Often Required
Having your car title and a government ID is a common requirement most lenders need. A proof of income, such as a paystub or bank statement, will help determine your ability to make the loan payments.
Have Personal References
Lenders often ask for at least two people they can use as an alternate contact. Don't worry, they can't tell your friends or family why they are calling.
Bring Your Proof of Car Insurance
You'll find that many lenders advertise that they do not need proof of insurance. But depending on your loan amount, you might need it. Besides, only two states do not require motor vehicle insurance. If you don't live in New Hampshire or Virginia, you should have at least the minimum protection your state requires. It's the law, ya know.
Get Your Credit Back on Track
Now that you've already checked your credit report, you may find errors that you should dispute with the credit bureau.
- Establish a Good Credit History If you have had problems in the past, opening new accounts and paying them off on time will help your score.
- Pay Your Bills before They Are Due Your smartphone alarm or email can be your greatest ally combating infrequent payments. Set up payment reminders to consistently pay your bills on time. Even a payment that is a few days late can have a serious negative effect on your credit score.
- Get Current with Your Late Accounts Your FICO scores will raise as you show a pattern of on-time payments. Your past credit issues will begin to fade as time moves on. After 7 and a half years, the problems disappear.
- Reduce Your Debt This is a challenging endeavor, but reducing your debt may be more important than increasing your credit score for the time being. Paying off your highest interest cards is usually suggested, but you could consider paying off the smallest amount debts first. Then, when your small debts are paid off you can apply that money to the next card and so on and so on.
- Contact Your Creditor If You Need Help Many people hide from their creditor and don't realize that when you get behind on payments many of these businesses are offering you help. You can talk to them when you are having trouble keeping up with payments. Most of the time they can set you up on a payment plan that is affordable. It doesn't hurt to talk to them.
We hope these tips help you build your credit and manage your debt more efficiently. It takes time to rebuild bad credit, but it's not impossible.