When applying for an auto title loan, there are many factors one should consider. No doubt, the condition of your credit score is at the top of this list. Some lenders will not even look at your car title loan application if your credit score is extremely poor. However, there are other things to be aware of when applying for auto equity loans. One such thing is the mileage on your car. Let’s discuss high-mileage auto title loans …
Lenders that Accept High-Mileage Vehicles
When it comes to high-mileage auto loans, most lenders usually have a limit on the miles for the cars they qualify. Note that mileage limits vary from lender to lender. For this reason, it may be beneficial to learn in advance a car title loan lender’s mileage caps before applying for a loan. The foremost reason why some lenders reject cars with high- mileage is because of the extra risk which comes with it. If a title loan lender offers money on a car that is near the end of its ‘life,’ it might be hard to recoup the money loaned if the car breaks down completely. This is especially true when a car is approaching 200,000 miles. Read more at http://www.unitedfinances.com/blog/better-ways-of-getting-cash-than-turning-to-car-title-loans/
Lenders fear that a car might not even make it through the duration of the loan if it already has high-mileage. If a car does not last, then there is no longer security for the loan, leaving the lender open for a big loss. Nevertheless, some steps can be taken if you want to secure a car title loan with a high-mileage automobile. Here are the most salient ones:
Tips for High-Mileage Auto Title Loans
Shop around for the best lender; the lender that best suits your needs is the one you should choose. Try to look for a lender who has their terms and conditions clearly stated. This would make sure that you can negotiate and defend yourself if the situation arises. Before you sign a loan agreement, make sure that you compare interest rates and loan terms, looking out for any stipulations related to high-mileage cars. Some lenders offer high-mileage motorcycle title loans.
Because it would prove to be difficult to remedy the issue of high-mileage, you must focus on your credit score. Even if your credit score is currently poor, you can still implement certain strategies to improve your credit score. Make sure that all your debts are repaid on time. This would reflect favorably on your credit score and make getting high-mile auto title loans that much easier!
IMPROVE YOUR CREDIT SCORE FOR EASY QUALIFYING
Though getting your high-mileage auto title loans applications accepted can be hard work, it is possible. Play your cards right, improve your credit score and clear all your existing debts. Shop around for the best deal possible and don’t lose faith. You should have your car title loan approved in record time! You may even qualify for high-mileage auto title loan refinancing. Learn more at https://www.theselfemployed.com/article/breaking-down-online-title-loans/