Things can happen to your finances that create a poor credit rating. Although it is important to build up your credit score, if you need cash now, you don’t have time to build up your credit rating. This means getting a loan today with bad credit. There are not too many options open to you. You have likely heard of payday loans, but if you own a car, you can use this to get a title loan.
What is a title loan?
A title loan is money that you borrow using your car as collateral for the loan. Because this loan is secured by collateral, your credit doesn’t have to be good. What is important is that you have a job, so a title loan company knows they will get their money back. Although they have your car as collateral, they are not in the car business and would rather you pay back the loan. The reason why they are called title loans is because you leave the title of your car with the lender. You then can drive away with your car. Once the loan is paid off, you will get your title back.
A few advantages to this type of loan
Beside being available to those with bad credit, they also can be far lower in interest rates than a payday loan due to the loan being secured. In addition, these loans can often be financed over several months rather than a couple of weeks like a payday loan. If you need cash for an emergency, the ability to get a loan that can be paid back in several installments gives you a chance to get yourself back on your financial feet.
You do need to have a clean title to your car. There should be no other claims on your car, and there shouldn’t be anyone else listed on the title. Some title loans mississippi companies will lend you money if you still have a few payments left on your car loan. They will pay off your car loan, and add on the amount you need to create a new loan for you.