Have No Credit? Consider a Title Loan

If you are a young adult, you probably have little to no credit. This will particularly be the case if you paid cash for your vehicle, as an auto loan would have helped build your credit. That can be a huge problem if you would like to borrow money.

Suppose that you have an important bill due soon and don’t have the cash on hand to pay it. Maybe you owe your roommate money for rent or maybe you racked up a huge bill on your mobile phone. Whatever the case may be, you probably just want to get that bill paid and keep collectors off your back.

Of course, if you don’t already have the money to pay off your bill, you are going to have to get it from somewhere else. However, most banks won’t even consider lending to you without a credit report to reference. What can you do?

With limited options, you can turn to a car title loan. You’ll have to put your vehicle up as collateral for a loan, but you’ll be able to get much needed cash for doing so.

Now, it is important to note that putting your vehicle up as collateral doesn’t mean that you will lose it. Doing so just acts as a guarantee that you won’t take the money and run because, if you do so, the lender can repossess your vehicle. In other words, if you pay the loan back on time, you will keep your vehicle.

Sounds fair, doesn’t it? After all, if you were going to lend money to a stranger, you’d probably want to make sure that he or she was going to pay you back. Nobody wants to lose a bunch of hard-earned money, so putting your vehicle up as collateral is only fair.

So, you’ll get some money as long as you keep your promise to pay it back. You won’t have to jump through hoops with a snooty banker to get a loan from him. Also, you won’t have to deal with any questions about your credit. You’ll walk in, get your loan and be on your way. Not too bad, right?

Consider the Alternative

You may wonder what will happen if you just skip getting a title loan. Let’s consider what will happen.

If you need a loan quickly, your bill probably can’t wait much longer. You may be several months late on payment and about to get kicked out of your apartment. Maybe your phone will be turned off and you don’t want to lose touch with friends and family.

The bank isn’t going to help you out. They’ll view you as too much of a risk and they also don’t like to lend out small sums of money, in general. That $500 bill might be a lot to you, but that is pocket change to a bank. They’d rather focus on larger loans to people who, ironically, need them less than you do.

So, if you want to borrow money, you’ll have to find a lender that will give you money with no credit. Most lenders won’t do that, so that is where a title loan comes in. Sure, it’s not the most desirable situation, but you probably didn’t get behind on your bills on purpose – so you probably just want out of this mess as quickly as possible.


Having no credit doesn’t mean you have no way of borrowing money. When times are tough, a lot of people turn to lenders for extra cash. Some of them don’t want anything to do with people who have no credit, but those who offer title loans will be happy to work with you. Just make sure that you borrow only what you need, and you pay it back as quickly as you can as you get back on your feet.