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Getting a Car Title Loan After Bankruptcy

January 11, 2018

If you've filed for bankruptcy, then your credit score has probably taken a nosedive. A bankruptcy can stay on your credit report for up to ten decades and decrease your score by 160 to 220 points. In these times of tight credit, making getting a loan very difficult.

It's ironic how that functions. It appears natural that individuals in Prescott, AZ who have gone through bankruptcies or other severe fiscal turbulence would have to borrow money the most. However, such individuals tend to have the most difficulty getting the loans which they require.

Now that you find yourself in this situation, you might believe that you're out of choices. After all, is anybody planning to give you money during these tough times?

Have You Considered a Car Title Loan?

A car title loan is one possible answer to your borrowing needs in the event that you've filed for bankruptcy. That is because some auto title lenders do not conduct credit checks. So, your bankruptcy filing won't be of concern to these lenders and they likely won't even know about it.

Besides possibly avoiding a credit check, acquiring a auto title loan is typically easier than getting a traditional loan. The process is usually quicker, because you'll frequently get your cash on precisely the same day that you apply for this. Essentially, if you own your vehicle and can offer a few relevant documents, you'll be well on your way to getting a car title loan.

How Much Money Can I Get?

Each lender has different requirements. Generally, however, loans begin at a couple of hundred bucks and can go much higher, based on the value of your car or truck.

At low loan amounts, you might be required to take out a pawn loan. You might need to temporarily permit the creditor to get the automobile in this circumstance, so make sure you fully understand the conditions before you agree to such a deal. However, at higher amounts, you'll probably get a car title loan, which normally requires you to hand over the title for the duration of the loan - not the vehicle itself.

Are There Any Risks?

There are dangers to any business transaction which you do. From buying food or electronics to taking out a loan from a conventional lender, there is a danger that the product or service is defective or that the business is unscrupulous.

To mitigate the risks that you could encounter with a auto title creditor or any other company, be sure to take precautions. These include checking your preferred lender outside with the Better Business Bureau (BBB.org) and making sure their agents are open, informative and friendly. Additionally, read the fine print on a auto title loan or any other document, for that matter.

Is a Car Title Loan Worth It?

This is a fiscal decision that will be best made after you've assessed it on a private level. If you read over the terms and are convinced that you cay pay your loan back correctly, then it may be a worthwhile choice. Obviously, should you not have the capability to pay your loan back on time, then it's ideal to avoid it.

A automobile title loan may be good for you if you need quick money or are excluded from traditional forms of charge. The loan that you're offered may or may not be ideal, but it is far better than nothing if you need a loan and a lender won't work together with you. Consider a auto title loan for your borrowing needs if your bankruptcy is causing problems with conventional lenders.

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