If you are among the many who suffer from a bad credit history, there is hope. When money is tight, taking out some form of personal loan is often the best option available. Borrowing from friends and family usually never turns out favorably, and borrowing against a credit card typically results in paying super high interest rates. There are some options including car title loans for those who own a vehicle. Here are a few tips to consider when looking for a bad credit loan.
- Choose what you will use as collateral. As mentioned, car owners can use the vehicle for a car title loan. Embassy Loans, for example, has helped thousands of customers access much-needed cash by using their car as collateral. You apply for the loan, verify your identity, and provide the title. Embassy Loans appraises your vehicle for value, draws up a loan agreement, and can process your loan in as little as an hour. There is no credit check since the loan is not based on a borrower’s payment history.
- Check the value of your collateral item. If you choose to do a car title loan, check out what your vehicle might be worth before looking for a lender. You can verify the value of a car or truck using Kelley’s Blue Book or the NADA used car values. When you do a car title loan, you will only be able to borrow up to 50 percent of the vehicle’s value.
- Do some research to find a trusted lender. Embassy Loans is one of Florida’s most successful and reliable car title loan companies. They have helped thousands of individuals, many with poor credit histories, in gaining access to cash.
- You may want to examine your credit report. You can obtain a copy of your credit report for free. You are entitled to one copy at no charge per year. Take a look at it from the perspective of a lender. Depending upon the type of loan you choose, your credit report may be pulled. If you do choose a car title from Embassy Loans, your credit history is not a factor in loan approval.
- Read a copy of your loan agreement before signing it. Once you have chosen a lender and agreed to do a loan, you will receive a contract to sign before you can receive your money. Make sure to read it carefully. Understand the repayment terms and what could happen if you default on the loan.
Bad credit loans are out there. If you do some research, you can find an option that best suits you and your financial needs.