If you have filed for bankruptcy, your credit score has probably reduced. A bankruptcy can stay on your credit report for 10 years and lower your score. Nowadays, that credit is hard to maintain which makes getting a loan very hard. It is sarcastic to know how it works. It seems normal that those who have gone through insolvencies or other financial turbulence would need to borrow money the most. But, such individuals tend to have the most trouble getting the loans they need.
Now that you find yourself in this condition, you may feel that you’re out of options. After all, is anyone going to lend you money during these tough times? This is why you need to consider car title loans.
Have You Considered a Car Title Loan?
A car title loan is a solution to your borrowing needs if you have filed for bankruptcy. This is because some car title lenders do not run credit checks. Consequently, your bankruptcy application won’t be of concern to such lenders and they may not even know about it. Apart from avoiding a credit check, obtaining a car title loan is easier than getting a conventional loan. The process is faster, as you will have your money on the same day that you apply for it. Essentially, if you own your vehicle and can provide some relevant documents, you’ll be well on your way to getting a car title loan.
How Much Money Can I Get?
Each lender has different requirements. Although, loans start at a few hundred dollars and can go higher, depending on the value of your vehicle. With little loan amounts, you may need to take a pawn loan. Also, you need to allow the lender to possess the vehicle in this situation. Therefore, ensure that you understand the terms before you agree to such deal. But, at higher amounts, you will probably end getting a car title loan, which typically requires you to hand over the car title for the duration of the loan and not the vehicle itself.
Are There Any Risks?
There are risks to any business transaction that you do. From buying electronics and food to taking out a loan from a bank or credit unions, there is a risk that the service or product is defective or that the business is unscrupulous. To reduce the risks that you could encounter with a car title lender or any other business, ensure to take sensible precautions. These include checking your preferred lender out with the Better Business Bureau and ensuring that their representatives are informative and friendly. Also, always read the fine print on a car title loan or any other document before signing it.
Is a Car Title Loans Worth it?
This is a financial decision that should be made after you have evaluated it on a personal level. If you read over the terms and conditions, and you’re confident that you can pay your loan back as at when due, then it may be a sensible option. Also, if you do not have the reasonable ability to pay your loan back on time, then it’s best to avoid it.
A car title loan may be good for you if you need fast cash or are excluded from traditional forms of credit. The loan that you’re offered may not be perfect, but it is better than nothing if you need a loan and a bank won’t work with you. Consider a car title loan for your financial needs if your bankruptcy is causing problems with traditional lenders.