When the banks have rejected an application or a fast easy cash advance from a payday lender isn’t quite sufficient, a motorcycle title loan could provide the answer. Putting up a vehicle as collateral means that no credit checks need to be performed because the lender is always able to recover his or her money in the event of default. A history of bad credit is no obstacle to approval and the money can be used for any-purpose, such as fixing a broken car or meeting a business expense.
How to Qualify for Motorcycle Title Loans
Although credit scoring isn’t used at any stage of the application process, it is still necessary to comply with a different set of lending criteria. Lenders are more interested in ensuring that there is sufficient collateral to recover any unpaid debt and that affordability can be proven. A number of U.S. states have also introduced their own laws that specifically govern vehicle title loans. The standard eligibility criteria are as follows:
- The customer must be a minimum of 18-years of age.
- Two forms of identification must be provided.
- At least 75% of any vehicle finance must have been paid-off.
- Proof of income is needed. Although a full-time job is preferable, some lenders will accept applicants who can demonstrate that they are in a position to repay the debt.
- An original copy of the car title.
- A duplicate pair of car keys. Although the vehicle will remain in the possession of the borrower, failing to repay the debt will result in repossession.
The Cost of a Fast Easy Cash Advance Today
A motorcycle title loan for $5,000 will accrue $1,250 of interest in just 30-days. The rate of interest can and does vary between U.S. states. For example, the maximum APR in Iowa is 35 percent. The cost of borrowing is high on an emergency cash loan because lenders are dealing with customers who have already been rejected by the banks due to a bad credit rating.
When Will an Emergency Cash Loan Be Received?
The majority of customers will receive an easy fast cash advance today, but within 24-hours at the latest. A lot will depend upon when the application is submitted. If a motorcycle title loan is applied for early enough in the day, there is enough time for a bank transfer to reach the customer’s account. Most lenders prefer to send a bank transfer, rather than paying in cash, because it is an important part of the identification and validation process.
Pros and Cons of Bad Credit Vehicle Title Loans
A motorcycle title loan provides a way to borrow money by putting up a vehicle as collateral. When bank lenders have rejected the application or when a fast easy cash advance from a payday lender isn’t sufficient, this could provide the answer. The problem with an emergency cash loan is that the rate of interest is often usury. This not only leaves less money to pay future bills, it could lead to the loss of the motorbike. If experiencing financial difficulties, it is advisable to seek guidance from a credit counselor.