Can you get a car title loan with bad credit?

I’ve been renovating my bathroom, but it’s an expensive project and my savings won’t cover it all. I applied for a personal loan through my bank, but they denied my application. I’ve heard a car title loan might work, but I’m worried about approval. Can you get a car title loan if you have bad credit?

Answer
Renovations can quickly add up and become more expensive than you anticipated, but the good news is that you can get a car title loan with bad credit if they’re legal in your state. In most cases, car title loans are specifically for those with bad credit, as more qualified borrowers pursue other options if they’re in need of money.
Car title loans are secured short-term loans that use your car as collateral and don’t require any credit check to be approved because the lender can repossess your car to cover losses if you fail to repay the loan.
Having a no-credit requirement makes car title loans appealing and available to most car owners, but they can quickly lead you into a cycle of debt due to their short repayment period, high APR, and expensive monthly fees.
If you want to avoid unfavorable terms, shop around and compare offers from multiple lenders. Alternatively, to avoid losing your vehicle, you could:
  • Use a credit card
  • Ask friends and family for a loan
  • Visit a credit union
  • Save on other expenses
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Jack Walsh
Answered on Nov 30, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.
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