When you have damaged credit, you get used to being turned down for loans. In fact, you’re so used to it that you don’t even try anymore. So, when financial troubles hit, you probably turn to doing things you’d rather not to get extra money, like pawning your things or begging family members for help.
But what if there was a way to borrow money that might not involve a credit check? Does it sound too good to be true? It isn’t.
Auto title loans are sometimes no-credit-check loans that allow you to borrow up to thousands of dollars with little more than a signature and a handshake! How is this possible? Read on to find out.
Vehicle Title Loans: How They Work
Car title loans provide a way for you to borrow money without letting your credit score get in the way. According to Nerd Wallet, you can typically borrow up to $10,000.
You don’t always have to pass a credit check to get one. You can apply even if you have bad credit. However, you do need collateral. In case you didn’t know, collateral is something of value that you put up to secure your loan.
You’re promising to give that thing up to the creditor if you don’t make your loan payments. And since they’re called car title loans, you can probably guess what the collateral must be: the title to a car you own.
That makes some people nervous and understandably so. After all, your car is one of the most valuable things you own! But, think about it: as long as you’re only taking on a loan that you know you can afford, what’s the risk?
This is how auto title loans work: you use your auto title as collateral. The lender will inspect the vehicle itself and offer you a loan based on your car’s value. While you make your payments, the lender will hold your title as security, and as soon as the loan is paid up, you get your title back. Simple, easy, and hassle-free. Best of all, you can qualify with bad credit!
The Application Process for San Diego Residents
Applying for a pink slip loan or car title loan in San Diego is usually a simple process that involves less paperwork than a typical bank loan. This article highlights the documents you need to apply for most car title loans. These are:
- a copy of your driver’s license or other form of photo identification
- proof of your address
- proof of your income
- the original car title
- a copy of the registration
- proof of insurance
Many lenders allow you to apply online but you will almost always have to visit a local office to let the lender inspect the vehicle and to pick up your loan money.
Car Title Loans May be the Answer!
Car title loans aren’t the right choice for everyone, but if your credit is less than perfect and you’ve been turned down by traditional lenders, they can be the answer to your prayers. When it seems like all doors are closed, auto title loan lenders have their doors wide open.
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