Is A Bad Credit Title Loan The Same As A Collateral Loan?
A bad credit title loan from Carolina Title Loans, Inc. is quite different from a collateral loan, and it’s important that you understand how. Learning how each one works will help you make better financial decisions, especially when you need to borrow money quickly.
In this article, we'll review the similarities and differences between these two kinds of loans. This guide can help you learn how quick and easy it is to get a title loan even with bad credit!
Bad Credit Title Loan vs. Collateral Loan: What’s The Difference?
It’s important to understand that a bad credit title loan is not the same thing as a collateral loan, though they do have some similarities. For one thing, both of them are examples of secured loans. That means each of them requires you to provide something of value as collateral to secure the loan.
On top of that, the value of your collateral influences how much you qualify to borrow. Simply put, the more your collateral is worth, the more you’ll qualify to borrow. For instance, you can secure a collateral loan with assets like investments, cash, and more.
However, a bad credit title loan is much more straightforward as it only requires your lien-free car title. With that title and a quick car inspection, you could be well on your way to borrowing the money you need.
The title loan also lets you keep your car even if your application is approved. That means you get to continue driving your car like you usually do every day without having to disrupt your daily routines.
What Are The Requirements For A Title Loan?
As you read above, a collateral loan can require you to provide many different types of assets as collateral. That’s unlike a bad credit title loan, which only requires you to provide a lien-free or ‘clear’ car title to qualify for one.
Being lien-free means that you own the car outright. In other words, there are no outstanding loans or judgments against the vehicle, and you’re free to use it to borrow money.
As the name suggests, that kind of loan doesn’t require you to have perfect credit. You can apply for one, no matter if your credit is good or bad. Aside from that, there are a few other easy requirements you’ll have to meet to secure a title loan:
- Minimum age: You must be at least 18 years old to apply for one of these loans. That’s a strict requirement, so it doesn’t matter if you’re only a few moments away from turning 18. You can only apply once you’re old enough.
- Identification: Aside from your title documentation, you must also provide valid identification to apply. You can use your driver’s license for that, though any other state-issued photo ID is also valid.
- Inspection: You must have your car inspected by a loan representative to continue. That means you’ll bring the vehicle with you to the in-person meeting with them so they can determine how much it’s worth.
It won’t take much time or effort for you to meet these requirements. As such, you can get started with your application pretty quickly if you start right now.
Is It Easy To Get A Bad Credit Title Loan?
Yes, it’s very easy to get one of these title loans, and there are a handful of reasons why. For starters, you only have to qualify with minimal requirements to get a title loan. As the name suggests, having good credit isn’t one of those requirements. Whether yours is good or bad, you can still qualify.
From start to finish, you won’t have to worry about spending too much time getting one of these loans. You can start at any time by submitting the online form, and the in-person meeting can take as little as 30 minutes to complete.
Your application and approval processes are also quick. You’ll find out whether or not your application is approved by the end of your in-person meeting. Another advantage is a fast payout. If you’re approved, you can get your money as soon as the same day or even the next business day.
Through this process, you’ll have a helpful loan representative helping you throughout your application. Overall, it’s plain to see that one advantage of a bad credit title loan is how easy it is for you to get one.
Get A Title Loan Today!
Now that you understand how a bad credit title loan is different from a collateral loan, you’re ready to move forward with Carolina Title Loans, Inc. Start now by providing the required information through the online form to kickstart the process. Soon after that, you’ll get a call from a helpful loan representative who will walk you through the remainder of your application.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.