Many people run into financial situations where they need money quickly, whether they have to make a home repair, pay a medical bill, or are short on cash before their next payday. If you’re in this situation and own a car, then a title loan may be a good option for you. But if you have poor or fair credit, you may be wondering if you can get a title loan without a credit check. Let’s dive deeper into how online title loans work and whether you can still get approved if you have poor or fair credit.
How Do Title Loans Work?
A title loan is a short-term, secured loan that uses your car as collateral. To qualify for a title loan, you have to own or have equity in a vehicle. The loan amount you can receive depends on how much your car is worth. Once you fill out an application online or in-store, the lender will conduct an appraisal of your car and offer a loan amount worth up to 50% of your vehicle’s value.
If approved, you can continue driving your car as you repay the loan, and the lender will hold onto your title. Just remember that if you don’t pay off the loan, the lender can repossess and sell your vehicle to recoup the loss.
Can You Get a Title Loan with No Credit Check?
It may be difficult to find title lenders that don’t do a credit check. Luckily, since a title loan is secured by your car title, you typically don’t need good credit to get approved. Many title lenders also have more lenient requirements and will consider factors in addition to your credit score, including your income and current debts.
What Do I Need to Apply for a Title Loan?
If you want to apply for a title loan, you may need the following information and items:
- Vehicle and title
- Government-issued ID
- Proof of residence
- Proof of income
- Vehicle registration
- Proof of vehicle insurance
How to Apply for a Title Loan
Here’s how to apply for a title loan and get the funds you need:
- Gather all necessary documents: Make sure you have all the information and items above to apply for a title loan, as well as any other required documents.
- Apply online or in-store: Fill out all necessary information about you and your vehicle on your application.
- Get your vehicle appraised: The lender may conduct an appraisal of your car in-store or at your home to figure out how much money you can receive.
- Sign loan paperwork: Fill out and sign all paperwork needed to receive your loan.
- Receive your funds: Once you submit the paperwork, receive your funds and continue to drive your car as you repay the loan.
The Bottom Line
You can still get approved for a title loan if you don’t have good credit. Although many title lenders will check your credit score, they’ll consider other factors and may decide to extend you the loan if you have poor or fair credit. As long as you own or have equity in a vehicle and can provide all necessary documentation, you may get approved. Just make sure you can pay back a title loan before applying so that you can avoid car repossession.