We all know there’s more than one way to borrow quick cash, and a title loan in Midland, TX, is just one of those ways. However, customers with poor credit will have trouble getting an unsecured loan. So, what’s wrong with getting cash from Texas Title Loans? There’s nothing wrong with considering a secured loan, 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, online title loans in Texas are costly. Your APR can be as high as 150%. If you fall behind on a payment or default, the interest charges will increase, and you will end up owning more than you can pay back.
Another downside of title loans is that online payments are seldom reported to credit bureaus. Whereas a personal loan lender or bank reports on time payments and you’ll increase your credit score, you’ll likely not see a credit score increase with timely payments for a title loan.
Other funding options for people with bad credit include personal loans from online lenders, instant auto equity loans, and peer-to-peer lending platforms. Personal loans from unsecured online lenders can have rates as low as 6%, and some peer-to-peer lending platforms offer loans 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 installment loan because they have a credit score under 600 or no recent lending history. Creditors in Texas want consistent payment history and evidence that you have made current payments on unsecured loans.
Now that we’ve discussed the number of negative aspects of vehicle equity loans, let’s discuss how they can be beneficial. Did you know many applicants cannot be approved for personal loans in Texas because of poor credit? Title loans with no income verification are among the few loan types people with bad credit can qualify for. They can be helpful for someone who needs to borrow more money than a typical Midland County lender offers. The average funding amount is currently between $1,000 and $4,000, which is well above what’s expected with payday advances and bank loans.
A title loan online could be worth considering if you have bad credit and need quick cash. 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.
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.
Start by completing our online form, which you can find on the Texas Title Loans website. Once we have the vehicle’s make, model, and mileage, one of our title pawn underwriting specialists will reach out to discuss your pre-approval and let you know what documents are needed. We’ll also review the different lending choices and funding options for borrowers in Midland and give you quotes and estimates to make it easy. Contact us at 844-243-3195 for more information!