Do Title Loans Affect a Borrower’s Credit Score?
If you are thinking of getting a car title loan, one of the questions you may have is, “Will a title loan affect my credit score?” An auto title loan is a way for you to use your asset as a line of credit. That alternative loan exists to help borrowers with no credit history or a bad credit score access financial assistance.
While your question is valid, it’s a reality of any loan you might be after. Getting a title loan can positively or negatively impact your credit history, but the effects are mainly influenced by your choices as a borrower.
How Does Taking Out a Car Title Loan Affect My Credit Score?
As a borrower, getting an auto title loan begins the repayment process for the loan, which can affect your credit score. Whether a title loan will affect your credit or not can be up to a few different factors:
● Your Responsibility as a Title Loan Borrower: Keep in mind that neglecting or defaulting on your loan payments can negatively impact your credit. If you don’t repay the car title loan promptly, the loan will eventually default. When that happens, some title lenders report the default to the major credit bureaus, which could negatively affect a borrower’s credit.
Speak to a title loan lender if you have questions about car title loans affecting your credit score.
How Can I Apply for an Auto Title Loan if My Credit Score is Bad?
If your credit score is less than ideal, you may not qualify for many traditional loan options. That is inconvenient when you need quick funding for a financial emergency!
Although you may not be able to qualify for most loans, you may still acquire a car title loan even if you have a bad credit score. That is a result of how a title loan works. Auto title loans are collateral-based loans, which can help you bypass your low creditworthiness and get money! While traditional lenders will base your eligibility on your credit score, a title loan lender will base your eligibility on:
Title lenders will still consider your credit if you apply for a title loan, but it is not the most essential part of the approval process. Instead, a lender will look at your vehicle’s equity and your income-to-debt ratio. That ratio tells a title lender what your credit utilization is, and if you can afford a monthly loan payment. Even if your credit is not where it needs to be, you may still obtain the financial help you need through an auto title loan.
Where Can I Apply for a Title Loan?
Applying for an auto title loan can be simple and convenient! Now that you know how car title loans will affect your credit score, you can use them as a resource to get you back on your feet! However, not every title loan lender or provider can offer the convenience of applying for a no credit check title loan online. For example, if you inquire about a car title loan serviced by LoanMart, you could start the approval process without leaving your home! That’s a whole lot of convenience to take advantage of.
Take a look at the three-step process you would take if you choose to get a title loan serviced by LoanMart:
1. Begin a Title Loan Inquiry Online or Over the Phone
2. Submit a Few Required Documents
Contact a title loan agent from LoanMart for more information.
Are you ready to obtain the funds you need for an unexpected bill or expense? No matter which title loan lender you choose, you could get money in no time at all!
