If you're in need of a quick influx in cash, you might be looking to take a loan on your car title. Good news is yes you can get a title loan without a bank account. In fact most lenders offer this.
This is a great way for borrowers with bad or no credit to take advantage of owning their car. Basically, how it works is, you take out a loan - typically between 100 and 10,000 - and offer the title, or ownership, of your car as collateral.
Why don’t you have a bank account? Maybe you like doing things in cash, or have a bank account but don’t feel the need to give out that info to some lender just to get a loan.
You will then typically have a month to repay the loan if you plan on avoiding fees and large interest payments. But what if you don't have a bank account? While this is typically a deal-breaker for other kinds of loans, it is possible to secure a car title loan without a bank account. Here's how to do it:
Finding the right loan for you without a bank account often means choosing between a secured and an unsecured loan.
Secured loans typically offer lower rates, higher borrowing limits, and longer repayment terms. A secured loan typically applies to something like a loan for a home, a car. As the name indicates, a secured loan means that you are providing 'security' that your loan will be repaid according to the agreed terms and conditions.
As for an unsecured loan, the rules are quite different. Unsecured loans include things like credit cards, education loans, or personal loans. Lenders are taking a larger risk by making such loans because there are no assets to recover in case of default. That is why interest rates are typically much higher for unsecured loans, because lenders want to use it as a way to encourage borrowers to pay on time.
In many ways, a car title loan behaves, like an unsecured loan, except in one critical aspect. As explained above, most personal loans are unsecure loans, so to make sure that you will be able to pay back the loan in a timely manner, the lender will dig deep into your credit history. Without a bank account, it's quite hard to look into your credit history. That's why a car title loan is popular and can be such a huge asset.
You can typically get a car title loan with just a couple things: a valid driver's license, and a car or motorcycle with your name on the title. After that, all you have to do is get your vehicle appraised and then head to an online provider or local car title lender and start the process.
When it comes to getting loans without a bank account, a car title loan is a great option. Because your car will be used as collateral, it can open the door to hundreds, or even thousands of dollars in immediate loan money.
To better understand how to get a car title loan without a bank account, let's look at the specifics that apply to the state of California. In California, auto title loans are regulated by the department of business oversight. They also have a minimum loan amount of $2501 at most loan shops.
Firstly, your car needs to have enough equity to qualify for that loan. You will also need to have full-coverage insurance on your vehicle, and a proof of income that you make at least $1,200 a month. It is important to remember that in order to get a car title loan without a bank account, you generally cannot be in progress of current bankruptcy.
After all that, you should be good to go in to the final steps of obtaining a car title loan.
Once you pre-qualify for the auto title loan, your lender will want to see just a bit more before you are in the clear. Proof of insurance, proof of income, pictures of your vehicle, and personal and professional references. Your lender may also ask to see your credit report. Even if you do have poor credit, most car title loan lenders in a state near you will work with you as long as your car has enough equity to qualify for the minimum loan amount.
After all this, you're finally good to go and can enjoy your car title loan even if you don't have a bank account.