Bad Credit Car Title Loans
For many people with bad credit the immediate cash available with a car title loan is very attractive. When an emergency happens, there simply is no time to wait for a traditional loan to be processed. The need for cash now is urgent and is often obtainable with a car title loan.
Whatever the cause, bad credit has many costs; Expensive re-connection fees often apply when utility service is shut down, late fees on mortgage or rent payments and higher interest rates on future loans may all be consequences of bad credit. Often, those with bad credit are faced with eviction or foreclosure due to a poor payment history. This can create an immediate need for the cash that a bad credit car title loan can offer.
When compared to bouncing checks, car title loans as a bad credit alternative can result in savings. Bounced checks, as anyone who’s been there can tell you, often snowball with one overdraft accumulating into dozens, which is certainly bad for your credit. With banks and the payee both charging returned check fees the cost can exceed $50 total per transaction. Just 6 bounces can cost you $300 or more. Here again a car title loan can make sense.
If the bank closes your account due to too many bounced checks or insufficient funds to cover the bounced check fees, you have not only lost the money you spent to have the checks printed on that account, but you’ll pay again for new checks on a new account. Bouncing a check can also damage your credit score, and getting any new loan with bad credit is even more difficult.
Fortunately, obtaining a bad credit car title loan can be a suitable alternative. In fact, even larger loans are often available due to a number of factors. For instance, the equity in the vehicle used a collateral is the primary consideration for a title loan, even for bad credit customers. Some title loan companies do not make use of credit scores, so even with bad credit you may still qualify for a loan. A number of title loan companies do not require the borrower to have a bank account of any kind. This can be an important factor for consumers with bad credit seeking a car title loan as it is sometimes difficult to maintain a banking relationship.