We all know there’s more than one way to borrow quick cash and that title loans in Midland TX are just one of those ways. But when you have bad credit, your options are pretty limited. So what’s wrong with getting a title loan? There’s nothing wrong with considering a title loan company in Midland, but let’s discuss why a vehicle equity loan may or may not be your best bet and what other funding options are available.
For starters, car title loans are incredibly expensive. The annual percentage rate (APR) on a title loan can be as high as 200%. That means if you borrow $1,000, you could end up having to pay back as much as $2,000 over the course of the first year. And that’s if you’re lucky enough to make all your payments on time without facing the risk of a vehicle repossession. If you miss a payment or two, the interest charges will start to pile up and you could end up owing even more money. Of course title loans, like payday loans are designed to be short term and any lender will tell you that they’re only effective when paid back quickly.
Another downside to auto title loans is that they’re one of the few loan types that don’t report to the credit bureaus. That means even if you make all your payments on time, your title loan won’t help improve your credit score. So if you’re hoping to use a title loan to improve your credit, you’re out of luck.
There are other funding options available for people with bad credit, including personal loans from online lenders and peer-to-peer lending platforms. Personal loans from online lenders can have APRs as low as 6%, and some peer-to-peer lending platforms offer loans with APRs below 10%. That’s still expensive, but it’s a lot cheaper than a title loan. The problem is that many borrowers in Midland can’t qualify for any type of installment loan because they have a credit score under 600 or they have no recent lending history. Creditors in Texas want to see consistent payment history and evidence that you have made recent payments on unsecured loans.
Now that we’ve discussed the number of negative aspects of title loans in Midland, let’s discuss how they can be beneficial for someone. Did you know that many applicants have no chance of being approved for personal loans in Texas because of their poor credit? The fact is, title loans with no income verification are one of the few loan types that people with bad credit can qualify for. They can be useful for someone who needs to borrow more money than what a typical lender offers in Midland County. The average title loan is currently offered at between $1,000 and $4,000 and that’s well above what’s common with payday advances and bank loans.
If you have bad credit and need quick cash, a title loan could be worth considering. Just be sure to do homework and check on the different terms and conditions of the loan before you sign off on anything. And remember, you should only access the collateral in your vehicle as a last resort when you have no other options. These types of collateral loans hit hard with high interest rates upfront and the last thing anyone wants is to be in a worse situation than before they took out a title loan.
All it takes is paid off vehicle and some proof of employment that shows you make a regular income of at least $1,200 a month and you’re well on your way to getting online title loans in Midland. We don’t check your credit scores and payment history here at Texas Title Loans and that means anyone can qualify regardless of whether or not you have good or bad credit. We keep things simple by basing the amount you’re eligible to borrow on the wholesale value of your vehicle and not your ability to repay the debt as traditional lenders do.
The first step is to fill out our online application form which you can find on our website. Once we have all the information we need, one of our title pawn underwriting specialists will contact you to discuss how much money you’re eligible to borrow against your car title. We’ll also go over the different lending choices and funding options for borrowers in Midland and give you a few quotes and title loan estimates to make it easy. Contact us anytime to see how much your car is worth and what you can get with an online title loan!