Title Loans In Texas With Poor Credit
Do you know it's easier than you think to get a bad credit title loan here in Texas? Some local lenders offer $1,000 or more with a car title as collateral and proof of income, and you don't need a good credit score to be approved. Best of all, you can be pre-approved within just a few hours of applying online!
Texas Title Loans offers access to title loans for anyone with poor credit, and you don't need to deal with the burden of an extensive credit check that's often required for a personal loan. We offer fast pre-approval for borrowers with equity in their vehicle, and you can borrow up to 60% of your car's value without worrying about your credit score. Apply online or call Texas Title Loans at 844-243-3195 to get pre-approved for a title loan without a credit check in Texas!
What's Required For A Bad Credit Title Loan
When you apply for title loans in Dallas, or anywhere else in Texas, don't let a bad credit score hold you back. While your credit score won't be the most important underwriting factor for a title loan, lenders in most Texas cities are legally required to verify income to make sure you can afford the payments on your loan. This protection ensures your loan amount stays within city-mandated limits. With bad credit title loans in Texas, the main underwriting factors include;
- Income level and current monthly take-home pay. In addition to your vehicle's equity, your income is important in determining your funding amount. Some title loan companies in Texas require a minimum monthly income of $2,500. This means that even with poor credit, your loan amount stays within 3% of your gross annual income in regulated cities.
- Vehicle's make/model/year/condition. Newer vehicles in good condition with low mileage will be worth more and lead to a higher title loan amount. You can qualify for a bad credit title loan with a 2016 or newer car or motorcycle that's paid off and titled in your name,
- Payoff term. In many Texas cities, under local lending ordinances, your repayment term is set to 4 installments or limited to just 3 renewals. This allows you to pay off your loan quickly and avoid high interest payments month after month.
Borrowers can typically access their cash immediately after approval, but local title loan lenders in Houston will have some specific qualifications. These restrictions and loan amounts vary by city, so it's best to check your initial quote and documents to see what else is required.
Do Title Loans For Bad Credit Come With A High Interest Rate?
Yes, interest rates on title loans for bad credit can be high and difficult to manage for borrowers who want to repay quickly. For this reason, you want to choose a payment term with your lender that offers manageable monthly payments and a reasonable payoff term to reduce the total amount of interest you pay.
While Title loans in Texas can carry interest rates of 100% or more, in many cities, including Dallas, Houston, and San Antonio, you're protected from "interest-only" payment cycles. Some municipal lending laws require that each payment you make reduces the original principal of your loan by at least 25%, and that means your bad credit title loan is set up in a way to be fully paid off in 4 months or less.
Alternatives to Bad Credit Title Loans
Paying off a bad-credit title loan can be expensive, and there is no guarantee your credit score will improve with each payment. It's essential to understand your options. Suppose you don't want to deal with the high interest rates of a title loan with bad credit. In that case, you should consider talking with a local lender that offers unsecured loans for people with good credit. Several online lenders offer more traditional personal loans, and they can approve borrowers based on their lending history and employment information. That means you don't need to use your vehicle as collateral for a loan, and your interest rate will likely be lower than that of a title loan.
Apply For An Online Title Loan With Poor Credit
It's possible to get an equity loan with poor credit, but the loan amount and interest rate are primarily based on your vehicle's value, not your credit history.
Remember these tips when applying for a bad-credit title loan in Texas. Make sure you have all documents, such as your driver's license, vehicle registration, and insurance cards, ready. Keep track of how much you pay for other expenses, as well as vehicle registration fees and taxes, so you know what equity amount is available and what you can afford to pay down the loan balance quickly.
Compare the various financing options when applying for title loans in Texas. Get a title loan estimate before signing any lending contract, so you at least know the payment arrangements. Also, see if a title loan refinancing is possible if you initially signed off on a loan with an APR that's more than you can afford. There's no risk in seeing what rates and terms are available to you, and the reps at Texas Title Loans can get you on your way with an online application.
Call Texas Title Loans at 844-243-3195 to get a title loan in as little as one business day, without a check of your FICO score. We offer fast pre-approval, with funding decisions based on your vehicle's equity value, not your credit history. Apply online or call us today!
