If you have had to file for bankruptcy, your credit score will now be about as bad as it gets. A bankruptcy can stay on your file for as long as 10 years and can knock as many as 220 points off your score. This means that getting a loan is pretty much impossible. This is quite ironic. After all, those who have gone through bankruptcy are the ones who need the money the most, but it is also almost impossible for them to get any more. Almost, but not quite.
How about a Car Title Loan?
One thing you may want to consider is to look at car title loans. This is because, in many cases, these types of loans are provided to people without doing a credit check. This means that nobody needs to know about your bankruptcy! Plus, title loans are really easy to get and they are paid out quite quickly, so they really are very beneficial.
How Much Can You Get?
The exact amount you can get depends on the value of your car. Generally speaking, car title lenders will not borrow you more than 50% of the value of your car. Additionally, they often won’t lend you more than around $2,500. Lower amounts are preferred. As such, just because you can get $2,000 on a title loan doesn’t mean you actually have to do it. If you only want to borrow $100, that is fine as well, in other words.
What about Risks?
Title loans are financial products and financial products are risky. If you have a bankruptcy against you, you will be aware of this. So, if you do want to apply for this type of loan, you need to be fully aware of the risks that are involved in it and how you can avoid them. You need to check out the reputation of your lender to make sure they are completely above-board. You should also compare the market, looking at things such as APR, loan terms, penalties, charges, early repayment fees and so on.
What Do You Need to Apply?
Car title loans are a type of secured loan, with your vehicle’s title deed being the collateral. This means that you can continue to drive your car while the loan is out on it. Some lenders will ask you to give them the spare key, however. Because of this, lenders don’t really care about your financial history, because they are guaranteed to get paid (if you don’t pay, they will take your car). Requirements for application are quite minimal, in other words. They include:
· You being at least 18 years old (21 in some states).
· You being the sole owner of the vehicle.
· The deed being free from liens, including car finance (very small balances may be acceptable).
· You having a valid and active bank account.
· You being a legal and permanent resident of this country.
Some will also require you to be in employment, although not all.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
