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What is a Title Loan for Bad Credit in Detroit, Michigan?
People across the country are hesitant to apply for loans, even when they desperately need one. The biggest reason is that they are convinced their bad credit history will prevent them from qualifying.
While it’s true that many loan types and lenders refuse to approve people with poor credit scores, that is not the case with all lending options and lenders. It is not the case with an auto title loan!
With a title loan, people with a wide variety of credit scores can be approved for quick funding. But what exactly is a title loan? A car title loan is an option to utilize when you have equity in your vehicle. Title loans may let you access your car’s positive equity by using its title as collateral for the loan.
Generally, a car title loan will allow you to access up to 50% of the equity in your vehicle; however, this amount depends on your car’s available equity, your income, and the state you live in. You might be able to obtain anywhere from $1,000-$10,000!
Remember that the title loan lender will place a lien on your title while you repay the loan. Lenders will remove the lien once you paid off the loan in full! Since auto title loans are a secured loan option, you may find that the approval process is more flexible than other lending types.
Read below to learn more about credit and how you could get title loans with a bad credit score!
Why is Credit So Important?
Have you ever wondered why credit controls so many aspects of everyone’s financial life? It can be frustrating to feel that you are being judged solely by a number that may not reflect your overall financial situation. However, there is a good reason for credit scores!
The FICO credit scoring system was created as an essential tool for lenders, leasers, and landlords to measure any individual’s financial risk. These five different factors calculate each person’s credit score:
- Payment History – 35%;
- Credit Usage – 30%;
- Age of Your Credit – 15%;
- Credit Variety – 10%;
- New Credit – 10%
While plenty of other loan types require a good credit score, auto title loans work differently. Because car title loans are secured rather than unsecured, your credit score is less important.
Title loans are secured by using your vehicle’s available equity as collateral for the amount you borrow! The security that the collateral can decrease the risk a bad credit score would pose to a title lender or provider. You may be approved for car title loans even with a low credit score!
Instead of just your credit score, the two most important qualifying factors for title loans are your car’s value and ability to pay off loans. You could easily prove both things when you begin the inquiry process with your title lender! You don’t need a perfect credit score to qualify for the funds you need to cover an unexpected bill or expense!
Don’t hesitate to contact your title loan lender or provider if you have questions about getting auto title loans with bad credit in Detroit, Michigan. They could help clarify any concerns and walk you through the title loan process.
So, What is a Title Loan Title Loan for Bad Credit in Detroit, Michigan?
A title loan for bad credit in Detroit, Michigan, could be right around the corner! Use your smartphone or computer to apply for an online title loan today. Don’t worry about which title loan lender to go for, as many options could be the same.
Although some title loan options could offer more perks than others, you could obtain funding in no time! However, if you want a car title loan online in Detroit, Michigan, you should ensure your title lender has that method available. If you’re in contact with your lender, you should also ask questions about auto title loans in your city!