Financial times are difficult, even if we are told we are no longer in recession. If an emergency happens, like a high vehicle repair bill, many of us simply do not have the money required to fix it. If you have no credit rating or a poor credit rating, you will be in a devastating situation with seemingly no way out. The problem is that you can’t predict when an emergency bill occurs, which means you could be in a constant state of worry as well. However, there are solutions out there for you.
Car Title Loans
With a car title loan, you will be able to access that emergency money that you need. Best of all, your credit history is not a deciding factor. You can easily apply for car title loans in San Diego online and decisions are virtually instant. This means you could have the money in your account that very same day, with a maximum of 48 hours.
If you have a history of paying bills late or not on time, you will become classed as a “risky investment”. This is because a lender will presume that you will default on payments to them as well. Hence, they will avoid you and not offer you any products. If you find someone that is willing to borrow you money, you will have to pay very high interest rates as well. The reasoning behind this is that, by paying more interest, the loss that the lender will suffer when you don’t pay the money back is offset.
Car title loans are different, however, as they are secured against your vehicle. If you don’t pay it back, the lender will simply repossess your vehicle and recover their costs that way. As such, they can offer you slightly lower interest rates as well. Do bear in mind that title loan interest rates are high, but this is offset against the fact that they are also short term loans.
Qualifying for Car Title Loans
The qualification criteria for a car title loan are very easy. They include:
- Being the holder of a clear vehicle title.
- Being at least 18 (21 in some states).
- Having a valid bank account with direct deposit facilities.
- Being a legal and permanent resident of this country.
Indeed, with many lenders, you do not even have to be employed. The majority of lenders do prefer employment, and they may give you a lower interest rate if you have work, as this means they will be more likely to get paid. However, even if you are unemployed, you should be able to apply for this type of loan.
The amount you can borrow will depend on the value of your vehicle, checked through NADA and the Kelley Blue Book. You will usually be offered between 25% and 60% of the value as determined through these lists. In most cases, the amounts offered will be anywhere between $601 and $3,000.