Can I Get a Title Loan Even if I Have a Bad Credit Score?

Yes, it is possible to get a title loan with bad credit. Generally, it is tough to qualify for an unsecured loan with a poor credit score. Title loans are a type of secured loan, and an applicant is required to pledge an asset as collateral for the loan. 

Since the title to your vehicle is the collateral for the loan, the application process can be much more flexible.1 Typically, title lenders will run a credit check during the approval process. But other factors, such as the value of your car and your income, can be more important to them.1

In 2022, an average of 72% of Americans were reported to have “good” credit scores, meaning that their score is at least 670 or higher. But, if you are one of the millions of Americans that do not have a good credit score, it may be challenging to qualify for an unsecured loan. If you qualify for an unsecured loan with a bad credit score, you will likely receive higher interest rates and unfavorable loan terms. 

With a ChoiceCash title loan serviced by LoanMart, you can access a flexible approval process that was designed to be efficient and quick – even if your credit history isn’t perfect! Eligible borrowers could get their funding as soon as the next business day!1 You can start your loan inquiry online by filling out the pre-approval form or calling 855-422-7402 to speak with a ChoiceCash title loan agent.1

How Do Credit Scores Work?

title loans bad credit

Credit scores are numerical ratings that range from 300 to 850 and are used by lenders to determine your creditworthiness. Creditworthiness is defined as the measure of your ability to take on additional debt and meet your current debt obligations. Generally, a higher score indicates that you are a responsible borrower and are more likely to pay back your debt obligations. 

Credit scores were created in the 1950s by the Fair Isaac Corporation (FICO). The FICO score system is still used by the majority of lenders today. A credit score allows lenders to see a snapshot of your financial history and determine your creditworthiness. Prospective employers, phone companies and utility companies can sometimes also request a copy of your credit report to see your current credit score!

A variety of factors can affect your credit score, including the following: 

  • Payment History: This is one of the most important factors that can impact your credit score. Late payments, missed payments, and defaults can significantly lower your credit score.
  • Credit Utilization: Your credit score can also be affected by your credit utilization, which is how much credit you’re using compared to your available credit limit. Generally, financial experts say it is important to keep your total credit utilization ratio under 30%.
  • Credit Age: Credit age refers to how long your credit history has been reported to the credit bureaus. Generally, the longer your credit history, the better it is for your credit score.
  • Credit Mix: Credit mix refers to the types of credit accounts you have, such as mortgages, auto loans, student loans, and credit cards. Having a variety of credit accounts can potentially boost your credit score and prove to lenders that you can manage multiple types of debt.
  • New Credit: New credit can positively and negatively affect your credit score. Firstly, taking on new credit can potentially lower your credit utilization ratio, which can help boost your credit score. But, it can also negatively impact your score, especially if you apply for multiple new accounts in a short period of time.

It’s important to note that improving your credit score takes time and there are no “quick fixes”. It may take several months to see any improvement, but it is important to make the effort because it can help your credit score in the long run. To keep your score as high as possible, it is important to pay your bills on time, keep your credit utilization low, and don’t open too many new accounts all at once.

What is a Bad Credit Score?

The lowest credit score is 300, and the highest credit score is 850. Generally, FICO credit scores can fall into these categories:

  • Excellent: 800-850
  • Very Good: 740-799
  • Good: 670-739
  • Fair: 580-669
  • Poor: Below 580

A credit score that is fair or poor is considered to be a “bad” credit score. If you are currently experiencing a challenging financial situation, your credit score may have taken a dip. It’s frustrating, but it happens, and it is a lot more common than you might think! Just remember that it is possible to get title loans with bad credit. If you need emergency cash to handle your unexpected expenses and get back on your feet, you can apply for a title loan online from your smartphone or computer today! There is no store visit required to apply and no hassle to get started.1

What Can I Do to Improve My Credit Score?

While you can apply for title loans with bad credit, improving your credit score is still important! Your credit score can impact many aspects of your life, such as your ability to purchase a car, obtain credit, and even find a new apartment! 

A good credit score can help you get better insurance rates, apply for housing, and get a new job. Overall, a higher credit score will allow you to take advantage of more financial opportunities. You can potentially improve your credit score over time by implementing the following financial decisions:

  • Pay Your Bills on Time: Late payments can indicate a higher risk of default, which can lower your credit score. Paying your bills on time demonstrates your ability to manage your finances and proves that you are a reliable borrower, which can help raise your credit score. It is incredibly important to prioritize your bills and avoid late payments!
  • Pay Off Outstanding Debts: Try to pay off your outstanding debt as much as possible, and avoid carrying large balances on your credit cards. Reducing your debt-to-credit ratio is also important. Over time, a lower debt-to-credit ratio will help to boost your credit score, as it shows lenders you are less of a risk.
  • Reduce Your Credit Card Balances to Less Than 30% Of Your Total Credit Limit: Carrying a balance that exceeds 30% of your credit limit can negatively affect your credit score. Keeping your credit utilization low can also help boost your credit score.
  • Check Your Credit Report for Errors: Regularly checking your credit report for errors allows you to identify any mistakes or potential issues that could be hurting your credit score. Be on the lookout for inaccuracies, such as incorrect late payments or suspiciously high account balances. Once the errors are corrected, your credit score can improve significantly.
  • Keep Old Accounts Open: The length of your credit history can also affect your credit score. So, it is important to keep old credit accounts open – even if you do not carry a balance on them.
  • Only Apply for Credit When You Need It: Applying for too many credit cards or loans in a short period of time can potentially lower your credit score. Additionally, taking on too much credit can put you at risk of going into debt, which can be very difficult to pay off. Apply for new credit only if it is absolutely necessary, and ensure that you have the ability to make the payments. Don’t overspend or buy anything impulsively with your credit card! 

What Do I Need to Qualify for Car Title Loans with Bad Credit?

You can apply for title loans with bad credit, but you must meet the initial requirements and submit the necessary paperwork to verify some information about you and your vehicle. 

In order to get a ChoiceCash title loan with bad credit, you must meet the following initial criteria:1

  • Be at Least 18 Years of Age: You must be 18 years of age or older to qualify for bad credit title loans.
  • Have a Title to a Qualifying Vehicle or Truck in Your Name: You must have a vehicle title in your name to qualify for an online title loan because you will be required to pledge your car title collateral for the loan.
  • Provide Proof of Your Ability to Repay the Loan: It is possible to get title loans with bad credit, but you must prove your ability to repay the loan during your loan inquiry. You will be required to submit proof of income or alternative income. Typically, you can submit bank statements, pay stubs, or proof of alternative income (like a benefit verification letter) during your inquiry.1

What Documents Do I Need for Title Loans With Bad Credit?

If you can meet the initial criteria for title loans with bad credit, the next step in your journey will be to gather the correct documents and upload them online. You will need the following paperwork during your title loan inquiry:1

  • A Valid Government-Issued Photo ID: You can verify your age and identity by submitting a valid, government-issued photo ID card, like a driver’s license.
  • Proof of Address: You may use a recent bank statement / credit card statement to prove your current address. You can also submit a recent utility bill. 
  • Proof of a Title to a Qualifying Vehicle or Truck in Your Name: In order to qualify for a title loan with bad credit, you must have the title to your car or truck on hand, and it needs to be in your name at the time of your application.
  • Proof of a Steady or Alternative Income: Your income and ability to repay the loan are two key factors that will be verified during your application. If you do not have a traditional job, the following alternative sources of income can also be used to demonstrate your ability to repay the funding:1
    • Disability Benefits
    • Retirement Income
    • Workers’ Compensation
    • Annuity Payments
    • Alimony / Child Support
    • Settlement Income
  • Recent Photos of Your Vehicle: One of the many benefits of a ChoiceCash title loan serviced by LoanMart is that you can complete a virtual car inspection online instead of a physical one!1 All you will need to do is take a few recent photos of your vehicle and submit them with the rest of your documents. The pictures should include all sides of the car, the odometer reading on the dashboard, and the VIN (Vehicle Identification Number). 

What are the Benefits of Online Title Loans With Bad Credit?

If you do not have a strong credit history, getting a loan from a bank or credit union can be challenging! But, you do not need a perfect financial history to apply for a title loan online – that is one of the many advantages of title loans! 

Below are some of the other advantages you can experience if you qualify for a ChoiceCash title loan serviced by LoanMart:1

  • Quick Funding: If you meet the initial requirements and complete the application process for a ChoiceCash title loan, you could choose direct deposit or have the funds added to a debit card to get your money in as little as 24 hours! Title loans were designed to be quick and flexible.1
  • Apply Online or Over the Phone: You can find out if you qualify for title loans with bad credit without making a store visit! Applying for the financial help you need should not be a hassle. Call 855-422-7402 to speak with a ChoiceCash title loan agent or fill out the prequalification form online.1
  • Bad Credit is Not Always an Issue: It is possible to qualify for a car title loan without a strong credit history!1
  • Competitive Interest Rates: Qualified borrowers can access competitive interest rates with ChoiceCash title loans serviced by LoanMart!1
  • No Prepayment Penalties: You don’t have to worry about prepayment penalties with ChoiceCash title loans serviced by LoanMart. Eligible borrowers can repay their title loan funds as early as they are able to! You can choose between setting up automatic payments from your bank account, sending a check in the mail, or visiting a participating money transfer location in your area to pay in person.1

What Can I Use My Title Loan Money for?

online title loans bad credit

Car title loans can be a convenient way to access quick funding. But can you spend your title loan proceeds on anything you want? Generally, you can spend your title loan funding however you like.1

You can potentially use your title loan money for a variety of financial issues, such as: 

  • Rent Payments: If you qualify for a ChoiceCash title loan, you can potentially use your loan proceeds to stay on top of your rent payments!1
  • Home Repairs: Would you like to tackle a home improvement project that you’ve been putting off for quite some time? A little bit of extra money in your pocket can allow you to complete some home repairs you may not have been able to afford in the past. 
  • Medical Bills: Roughly 26 million Americans currently live without health insurance, and one unexpected trip to the emergency room can result in a giant medical bill. You can potentially pledge your car as collateral for emergency cash and take care of your medical bills.1
  • Debt Consolidation: You can use your title loan proceeds to consolidate debt and potentially sort out your current financial situation.1
  • Veterinarian Bills: Most people love their pets like family, but covering unexpected veterinary expenses can be a struggle. There are several reasons why you may not be able to afford a vet visit, including financial constraints, lack of pet insurance, or unexpected health issues. Some extra money in your wallet could help you pay for expensive pet treatments and surgery!
  • Travel Expenses: Traveling is expensive, especially if you lack disposable income. Whether you need extra money for a flight back home for the holidays or a surprise trip to Mexico, a ChoiceCash title loan could help you cover some of your travel expenses.1

How Can I Apply for Title Loans With Bad Credit?

You can apply for car title loans with bad credit from anywhere you have secure internet access – just use your smartphone or computer to get started. Take a closer look at the three basic steps to apply for ChoiceCash title loans with bad credit:1

  1. Click Online or Call a Title Loan Agent
    You can begin your inquiry for title loans with bad credit online! There is no store visit or physical vehicle inspection required to apply for the financial help you need. The online pre-approval form may only take a few minutes to complete. Or, you can call 855-422-7402 to speak with a ChoiceCash title loan agent.1
  2. Submit the Required Documents Online
    A title loan agent may ask you to send the necessary documents after you complete the prequalification form. You can easily upload the required documents online or send them via email / text message to a title loan representative during your loan inquiry!
  3. Find Out if You Qualify for Title Loans with Bad Credit1
    Finding out if you are eligible for quick funding is the last step in the title loan application process! If you are experiencing a tough financial emergency, you may need money quickly. With ChoiceCash title loans serviced by LoanMart, qualified borrowers can receive their money in as little as one business day.1

Frequently Asked Questions

Payday loans are another type of alternative loan option, but they typically come with high interest rates and fees that can be tough to handle. Qualified borrowers can access competitive interest rates through ChoiceCash title loans serviced by LoanMart!1

Qualified borrowers may receive anywhere from 25-50% of their car’s total value through a car title loan. However, if you qualify for a title loan with bad credit, you do not have to take the entire amount you are eligible for.1

Yes, it is possible to get a title loan with a low credit score. In order to obtain a title loan, a borrower must pledge their vehicle as collateral. Because collateral is used to secure the loan, an applicant can apply for a ChoiceCash title loan without a perfect credit history.1

To qualify for a title loan with bad credit, you must meet the initial criteria. You must be at least 18 years old, have a qualifying vehicle title in your name, and be able to provide proof of income / alternative income.1

Typically, a credit check is an important part of the title loan application process. But, other factors, such as the value of your car and your income, can be more important during the approval process. It is possible to qualify for a car title loan with bad credit!1

Carolynn P.
Carolynn P.
Carolynn P. is an accomplished writer on the ChoiceCash content team, with a strong background in digital content creation. Having worked in financial services for almost 2 years, she is passionate about translating technical language into digestible content that readers can easily understand without prior financial knowledge. In addition to writing informative blogs and articles for ChoiceCash loans, she covers all aspects of personal finance.