Getting a Car Title Loan After Bankruptcy

Published: 08th May 2020
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It seems natural that those who have gone through bankruptcies or other serious financial turbulence would need to borrow money the most. However, such individuals tend to have the most trouble getting the loans that they need.

Now that you find yourself in this situation, you may feel that you are out of options. After all, is anyone going to lend you money during these tough times?

Have You Considered a Car Title Loan?

A car title loan is one possible solution to your borrowing needs if you have filed for bankruptcy. This is because some car title lenders do not run credit checks. So, your bankruptcy filing won't be of concern to such lenders and they probably won't even know about it.

Aside from possibly avoiding a credit check, obtaining a car title loan is typically easier than getting a traditional loan. The process is usually faster, as you'll often have your money on the same day that you apply for it. Basically, if you own your vehicle and can provide a few relevant documents, you will be well on your way to getting a car title loan.

How Much Money Can I Get?

Each lender has different requirements. In general, though, loans start at a few hundred dollars and can go much higher, depending on the value of your vehicle.

At low loan amounts, you may be required to take out a pawn loan. You may have to temporarily allow the lender to possess the vehicle in this situation, so be sure that you fully understand the terms before you agree to such a deal. However, at higher amounts, you'll probably end up with a car title loan, which usually requires you to hand over the title for the duration of the loan - not the vehicle itself.

Are There Any Risks?

There are risks to any business transaction that you do. From buying food or electronics to taking out a loan from a traditional bank, there is a risk that the product or service is defective or that the business is unscrupulous.

To mitigate the risks that you could encounter with a car title lender or any other business, be sure to take reasonable precautions. These include checking your chosen lender out with the Better Business Bureau (BBB.org) and making sure that their representatives are open, friendly and informative. Also, always read the fine print on a car title loan or any other document, for that matter.

Is a Car Title Loan Worth It?

This is a financial decision that will be best made after you've evaluated it on a personal level. If you read over the terms and are confident that you cay pay your loan back properly, then it may be a worthwhile option. Of course, if you do not have the reasonable ability to pay your loan back on time, then it is best to avoid it.

A car title loan may be good for you if you need quick cash or are excluded from traditional forms of credit. The loan that you are offered may or may not be ideal, but it's better than nothing if you need a loan and a bank won't work with you. Consider a car title loan for your borrowing needs if your bankruptcy is causing problems with traditional lenders.

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