23 Jun 2021   /   0 comments

Does a Title Loan Affect my Credit?

Car title loans

pexels-photo-259200If you are currently considering taking out a title loan, you may be asking the question “ does a title loan affect my credit ”.

You may be particularly worried about this question because you have decided to get a pink slip title loan.

Does A Title Loan Affect My Credit?

Yes, a title loan can affect your credit. If you make your monthly payments, and they are on time, the effect your title loan will have on your credit will be positive.

A title loan can negatively affect your credit if you fail to make your monthly payments on time, so this will have a negative effect.

Do Title Loans Affect Your Credit?

If you default, this will also affect your credit. And you have a poor credit score and cannot afford to get any worse than it already is.

That is alright, we are very familiar with that situation. We have been hearing of a similar dilemma from thousands of our customers for nearly twenty-five years now.

So if you are wondering does a title loan affect my credit, the answer is yes, but it can be positive or it can be negative, it is the same with any loan that you get, or any service you get, make you payments on time, and this will have a positive affect.

Title Loan And My Credit?

Does a Title Loan Affect my CreditTitle loans are one of the only personal loans that people with a less-than-perfect credit score can still qualify for.

Close title loan lenders can do this because they base your loan approval and amount completely on both the current street equity value of your vehicle and your ability to repay the loan every month.

Many people try to improve their credit but they have no opportunities to do so since all creditors reject them.

We want to allow those people to improve their credit reports so they can provide a bright financial future for themselves and their families.

In short, does a title loan affect my credit? Yes, it does. You can improve your credit score with a title loan.

How Title Loans Can Affect Your Credit?

auto title loansWe want to use this resource article to explain how title loans can affect your credit score for both the worse and the better.

We strongly believe in lender transparency, customer support, and consumer education so you can make the most informed decision possible.

Finance is not to be taken lightly since even seemingly small decisions can make a big impact on your future.

Do Title Loans Go On Your Credit?

Continue reading to learn more about how your credit score may be affected by an auto title loan.

However, if you have decided to apply for a car title loan, then fill out our online application. You will hear from one of our customer representatives shortly after applying.

Do Title Loans Check Your Credit?

Not all title loans check your credit, but it all depends on the location and state. We have some partners that will do a no-credit-check title loan. But most partners will check your credit.

How Your Credit Score Works With Title Loans

Turn Your Car into CashThirty-five percent of your credit score is made up of your payment history.

Thirty percent is your credit utilization. 15% is the length of your credit history while your credit mix and your new credit make up 10% each.

Getting a title loan would have the greatest impact on the payment history percentage of your credit score.

Unsecured loans, tend to make a much larger impact on your credit score. However, loans that are secured, meaning they are based on collateral, like Car Title Loans still have the potential to greatly affect your credit score.

 Title Loans Affect Your Credit

A title loan can both improve your credit score but also has the capability of damaging you. If you make all of your monthly payments on time, then your credit score will improve.

If you are late with your payments and fall behind, this will damage your credit. A title loan is like any other line of credit, as long as you make the monthly payments on time, just like other bills, then you will improve your credit score.

Title Loans Can Improve Your Score

If you pay off or refinance your title loan every month and on time, according to the terms set up by the lender at the beginning of the loan, then your payment history will start to look significantly better.

Since the payment history takes up such a big chunk in determining your credit score, your credit score will automatically begin to improve as you continue to pay down the loan.

If you plan out your payments and budget wisely then a collateral loan has great potential to give you a far better credit score than you had to begin with.

Title Loans Can Damage Your Score

how does a car title loan workAs with any other loan or line of credit you may take out in your life, if you do not make the payments on time or default on the loan then your credit score will go down and your credit report will look less favorable to other lenders.

If you stay on top of the payments and do not default on your title loan, then you do not need to worry about it.

Apply Now For Your Title Loan

Car Title Loans Glendale ArizonaIf you have any questions whatsoever, then feel free to give us a call at any time. We have customer service representatives standing by to take your calls and help you out with any issues or doubts that you might have.

Fill out our online application today, to improve your credits. We are eager to work with you.

Now you know how title loans affect your credit, and you can improve your credit score with a title loan.

When other banks will not lend to you, we will get you a title loan and our title loans will affect your credit in a positive way when you make your monthly payments on time.

Here is some more information on credit scores.


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