What Is Required To Qualify For A Title Loan For Bad Credit?
A title loan for bad credit allows you to get between $300 and $2,500, depending on the value of your vehicle to cover the costs of emergencies. Due to the low credit requirements, the loan allows people without a solid financial history to get money when they need it most.
But that doesn't mean there aren't any requirements. So, we will look at the three things you must have to qualify for a title loan for bad credit right here. By the end, you'll be able to confidently start your application, knowing you can meet the eligibility requirements.
Everything You Need To Be Eligible For A Title Loan For Bad Credit
As the name suggests, you don't need a good (or even a fair) credit score. However, you must have the following three items that we'll explain in detail now:
1. Government-Issued ID
Like any lender, we need to prove that you are who you say you are. Hence, you must produce a government-issued form of identification if you are seeking a title loan with bad credit.
Our customers tend to use their driver's licenses as it's typically the ID that most people have on hand. That said, you aren't limited to that. You can use your passport, military dependent's card, passport card, military servicemembers card, and other valid documents.
2. Lien-Free Vehicle Title
To be eligible for a title loan for bad credit, you will need to own your vehicle outright — and a title without a lien proves this.
While many other kinds of titles exist, we can only work with lien-free varieties. It proves that you own your vehicle without any outstanding liens or judgments.
We place a lien on your title to secure the loan. But we can't do that if there's already one in place. So, before proceeding, please make sure your title is definitely lien-free!
Another thing to note is that your vehicle title must be in your name. If it isn't, you will need to go to your nearest Department of Motor Vehicles office to transfer the title. As soon as the transfer is finalized, you can meet the qualification criteria for a title loan for bad credit.
3. The Vehicle
As we mentioned earlier, the amount you can borrow with a title loan for bad credit depends on the value of your vehicle. Therefore, you need to have an eligible mode of transport connected to the lien-free title.
But What Is An Eligible Mode Of Transport?
We work with cars, vans, or trucks. We don't accept other vehicles like tractors, trailers, horse boxes, caravans, RVs, ATVs, motorcycles, or boats.
How Do We Assess the Value Of Your Vehicle?
Our borrowing limits run from $300 to $2,500. But it's your car's worth that determines how much you can access.
Generally speaking, we assess the value of your vehicle by looking at the following factors:
- Your car's age — As most people understand, cars are considered depreciating assets. In layman's terms, this means that your car decreases in value as it ages. According to some sources, vehicles lose up to 60% of their value during their first five years of life, before the depreciation curve flattens to a steadier pace. So, if you own an older vehicle, you shouldn't expect it to be worth as much as its newer cousins (unless you're lucky enough to have a classic).
- Your car's odometer reading — Generally speaking, the more miles your car has traveled, the less it is worth. However, the figure is relative to its age. Average mileage is between 10,000 to 12,000 per year. So, a three-year-old vehicle with 33,000 miles on the clock is considered an average mileage. Thus, its value won't be as affected.
- Your car's cosmetic condition — Dings, bumps, scratches, and even stained interiors can impact the value of your vehicle. The better its cosmetic condition, the more it's worth.
- Your car's mechanical condition — Likewise, you can't expect to get a good price for your vehicle if it isn't in good working order. Those with properly functioning vehicles are more likely to qualify for higher loan amounts.
- Your car's service history — Ensure your vehicle has an updated history in its service book. That way, you stand a higher chance of approval.
- Your car's make and model — Some makes and models are worth more than others. Vehicles from premium, luxury brands will more easily qualify for higher title loan amounts.
Get A Title Loan For Bad Credit From Mississippi Title Loans, Inc. Today!
If you have a government-issued ID, car, truck, or van, and a lien-free vehicle title, you can qualify for a title loan for bad credit from Mississippi Title Loans, Inc.
So, complete our easy-to-understand online loan request form, and we'll be in touch to help you through the process. With us, it's easy to borrow money for your emergency.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.