Do Title Loans Go Against Your Credit?
Are you wondering do title loans go against your credit? We will answer that question for you. We are here to help you use a title loan to not only get the money that you need but to also have the title loan rebuild your credit.
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Do Title Loans Go On Your Credit?
You might be wondering do title loans go on your credit? The simple answer is that they do, but it all depends on the lender.
Some lenders report the credit and some do not.
Perhaps you are even considering taking out an auto title loan on your vehicle since you know it might be a little difficult to get a regular personal loan from the bank because of your credit score.
You likely already know that you can be approved for title loans regardless of credit score but you may still be wondering do title loans go against your credit once you get one.
Do Car Title Loans Report To The Credit Bureaus?
Some car title loans report to the credit bureaus, but that all depends on the policies of the title loan company and if they’re going to report or not.
Do Title Loans Check Your Credit?
You might be wondering if title loans check your credit, this will all depend on the lender, we can get you no credit check title loans, but not all lenders will do that.
Do Unpaid Title Loans Go On Your Credit?
Yes, unpaid title loans will go on your credit. So it is always best to see if you can settle the title loan if possible.
It is important to consider whether your credit score could be damaged or even possibly improved by an auto title loan.
Here, at TFC Title Loans, we want to help answer that question and any other questions that you might need to be answered before deciding on whether or not to apply for a title loan.
Less Than Perfect Credit Title Loans
Car title loans are one of the only loan options out there for individuals with a less-than-perfect credit score.
Title loans will use the equity that you have in your vehicle and not your credit score, and do this by basing the loan application approval on the current equity in your car and based on your ability to repay the loan according to monthly payments.
Do Title Loans Report To Credit Bureau
Yes, title loan companies in general, will report to the credit bureau, they will report the positive and the negative payments.
In this resource article, we will be explaining to you how title loans can help improve your credit immensely and, also, how they might potentially damage your credit if you do not handle the loan carefully.
Credit And Title Loans
We want you to have all the information before deciding since finances are not to be taken lightly.
If you’d like to learn more about improving your credit score with a title loan, then continue reading this article.
But if you are already prepared to start the process of applying then fill out our simple and convenient online title loans application today.
Your Credit Score
Your credit score is made up of five different parts, each taking up a certain percentage of the total credit calculation:
- 35% – Your Payment History
- 30% – Your Credit Utilization
- 15% – Length of Your Credit History
- 10% – Your Credit Mix
- 10% – Your New Credit
Obtaining an auto title loan through TFC Title Loans would have the greatest effect on the payment history part of the calculation of your credit score.
This means that depending on how well you make the monthly payments, a title loan can both improve your credit score and be capable of damaging it in some ways.
How A Title Loan Might Improve Your Credit Score
If you make the scheduled payments on time every month to pay down your title loan by the time it is designated to reach maturity, then the payment history percentage in your credit score calculation will start to appear significantly better.
Since the biggest chunk of your credit score is your payment history at 35%, you will likely see a big improvement in your credit score by the time you finish making the payments.
Therefore, it would be wise to strategically budget out your payments so that you make them all on time and always have enough money to pay!
How a Title Loan Could Damage Your Credit Score
So, Do Title Loans Go Against Your Credit? Just like with any other loan option out there or any other line of credit.
If you do not make the payments on time or you default on the loan then your credit score is bound to take a substantial hit and you will likely look far less reliable to other lenders in the future.
So an unpaid title loan will go against your credit, it is important that you make your monthly payments, so your credit will not get affected by your title loan.
Monthly Payments And Title Loans
However, if you pay close attention to the payments and get them in on time every month then you won’t default on the title loan and you will have positively nothing to worry about!
If you have any more questions on the subject then simply give us a call, we would love to hear from you and look forward to working with you! Read more about the Credit Bureau.
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