Getting a Loan After a Divorce
May 22, 2012
Divorce is not something that most people want to go through. The financial and emotional impacts can last for years after the divorce is finalized. Particularly, your credit score will likely drop significantly as a result of a divorce. Thus, it may be difficult or even impossible to secure a traditional loan.
Luckily, if you need a loan after your divorce, you may be able to get one. If you own a vehicle, you can do so by getting a car title loan. You may have also heard of such loans referred to as u-drive loans, pink slip loans or title loans.
Below is an overview of what you can expect when obtaining a car title loan.
No Credit Check
An important benefit of car title loans is that a credit check is often not required. In fact, Car Cash Loans will never check your credit. The big boys at traditional lenders may frown upon your divorce, but it won’t be an issue if you seek a loan through Car Cash Loans.
Flexible Loan Amounts
Suppose that you need a loan of $3,000. If you own a vehicle that is worth at least $6,000, you can get the full amount with a car title loan at Car Cash Loans. This is because such loans are typically issued in amounts of up to 50 percent of the vehicle’s value.
If you seek a larger loan and have a vehicle that has an appropriate value, you may be able to do so. Car Cash Loans offers loans of up to $50,000.
If you seek a smaller loan, you may be able to do so as well. You may get a pawn loan.
What Will Happen to My Vehicle?
If you take out a car title loan at Car Cash Loans, you will keep possession of your vehicle for the duration of the loan. This will allow you full use of your vehicle while you get the money that you need.
With a pawn loan, you’ll have to temporarily give possession of your vehicle to the lender. As pawn loans are typically relatively small, this shouldn’t be that long of a time. After all, if you borrow just a few hundred dollars, it probably won’t take long to pay it back and retrieve your vehicle.
Will This Hurt My Credit Score?
Your credit score has probably taken a large hit already. Thankfully, with a car title loan, it doesn’t have to go down any further.
If you repay your loan according to schedule, late payments won’t be reported. Thus, your credit score won’t take any related hits.
What Can I Use My Loan For?
With some loans, the lender will want to know what you intend to do with it. However, a car title lender typically won’t request this information. This is because your vehicle will act as collateral, meaning that the lender has a high probability of recovering the loan if you do not pay it back. Thus, whether you intend to purchase lottery tickets or pay off an urgent bill with your money, the lender probably won’t have an interest in your intentions.
Will I Lose My Vehicle?
With any collateralized loan, there is a risk that you’ll lose the relevant asset. However, this risk is minimal with car title loans. Just 4 to 8 percent of car title loans end up in repossessions, meaning that you have a high probability of keeping your vehicle.
Be sure to borrow only what you need. Doing so will minimize your interest payments and allow for a smooth repayment process.
Remember that there will be no credit check at Car Cash Loans. While divorce is not a fun situation, it doesn’t have to negate your ability to borrow money!