What Are Low-income Loans And How Do They Work?

A low income can stand in the way of most emergency financial options. Almost every bank and traditional loan requires certain income levels to be reached before they even consider your application. However, the modern world has created a hoard of choices that make it easier for people to gain approval.

Aptly called "low-income loans," these loans are designed for people with lower-than-average incomes. Interestingly, a specific threshold for defining low income must be defined, as each lender sets their criteria. It can also change depending on location, household size, and cost of living. 

As we're sure you can imagine, this merely scratches the surface of the far-reaching topic. So, we will go into greater detail in the rest of this article to ensure you're fully informed before getting one.

How Do Low-Income Loans Work?

More often than not, it would be best to meet stringent income criteria to gain loan acceptance. But that isn't the case here, which begs the question, "How do low-income loans work?" After all, lenders need assurance that you can realistically repay the loan. 

Sometimes, low-income lenders offer secured loans to decrease the risk of lending to you. As the name suggests, these loans are secured by a valuable asset (otherwise called collateral), such as a car, your home, or a deposit, making them easier to qualify. 

Other times, lenders will provide low-income, unsecured loans, allowing you to borrow without securing it with a valuable item. In this case, the lender will look closely at your credit score, debt-to-income ratio, and other factors to decide whether your risk level is viable for them. While they're still low-income loans, they are usually harder to qualify for since you have to meet potentially extensive extra requirements before gaining approval.

The Most Common Types of Low-Income Loans

You know what low-income loans are, and you know how they work. Now, it's time to jump into the most common types. Many financial options fall under this umbrella term, but we'll take a closer look at just the two most common — title loans and payday loans.

Title Loans

Title loans are short-term secured loans that use your lien-free vehicle title as collateral. You can borrow up to a whopping $15,000, depending on the value of your vehicle, allowing you to fund emergencies of all kinds. The more your car is worth, the more you can borrow. Although, you should only request as much as you need to cover the costs of your crisis.

Requirements

• State-issued identification displaying your name, photograph, and date of birth
• Lien-free vehicle title
• Your car, truck, or van for inspection

Process

1. Complete our easy-to-understand online form.
2. Wait for us to give you a call. We'll discuss the requirements, review the process steps, and answer any questions.
3. Head to your nearest Nevada Title and Payday Loans Inc. storefront with the necessary items.
4. We'll analyze your documents and assess your vehicle to discover how much you can borrow.
5. If you are satisfied with the amount we can offer, sign the forms. We'll be sure to answer your questions before you do so.
6. Lastly, you'll get the money on the same or the next business day.

Payday Loans

Like title loans, payday loans are short-term. Unlike title loans, they are an unsecured version. Thus, you won't need to use your vehicle title to gain approval. Instead, we use your pay stub to determine how much you can repay. You can borrow as much as $500 with a payday loan.

Requirements

• State-issued identification displaying your date of birth, name, and picture.
• Most recent pay stub.
• A blank check from your active checking account.

Process

1. Complete our simple form found on this website.
2. Sit back and pick up the phone when we give you a call. This should take some time, so please make sure your phone is nearby.
3. So that you know, you can head to your nearest storefront with everything you need to qualify.
4. We'll verify your documents to decide how much we can offer you.
5. If it's enough to cover your emergency, we'll walk you through the final stages. 
6. Finally, you will get your money on the same or the following business day.

Get A Low-Income Loan From Nevada Title and Payday Loans, Inc. Today!

Low-income loans are an option if you fall below the national average income and need money quickly. From needing to fund an unanticipated medical bill to covering roof repair costs to paying for your dog's veterinary fees, these loans can help with it all.

You don't need a good credit score when you choose Nevada Title and Payday Loans, Inc. We welcome borrowers from all credit backgrounds! If you're ready to get a title or payday loan, please fill out our online form, and we'll make sure to call you to begin the process.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.