Loans for people with bad credit : Obtaining a loan from banks present multiple hurdles for many consumers. First, they require particular credit scores. Then their repayment options can take anywhere from a year to five years. They also do not offer many choices for the consumer in repaying the loan.
Consumers with bad credit may not even want to bother with bank loans for many reasons. There is the possible embarrassment of being denied the loan by a bank loan officer. Also, in checking credit for a loan, the bank may actually damage the consumer’s credit score. Anytime a consumer’s credit score or history is checked, it has the potential to lower their credit score. If a consumer is aware of their low credit score, or knows they have had a bankruptcy in the past, there is little reason to ┬áapply for a loan from a bank.
Another negative aspect to receiving a bank loan is the limited repayment options. While a bank can offer lower interest rates to a consumer with good credit, if the credit score is only fair, the bank’s interest rates can be higher than a title company’s rates. They also only offer long-term repayment with their loans. Even if the consumer has a good credit score and the rates are lower, a longer-term loan will have a longer period to build up the amount of interest paid.
Title loans from our company use your credit score as only one factor in determining if you qualify for your loan.┬á We do not base the amount of the loan on your credit score only; we consider the value of your car and your ability to repay. We also have many options for short-term loans. This means the repayment process can be over quickly, and it is not something the consumer will have to worry about over the next few years.
Lastly, the other large advantage for title loans is the flexible payment amounts and dates. We are happy to base the consumer’s payments around not only their payday, but also around the days other bill payments are due. In doing so, we like to think we are offering a service to consumers with as much value as a bank loan.