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02 Jul 2019   /   0 comments

Can Title Loans Hurt Your Credit?


Can Title Loans Hurt Your Credit

Are you currently thinking about applying for a title loan? Well, you may be wondering about the answer to the question: can title loans hurt your credit? This is an important question to ask as your credit report greatly impacts each area of your life. You, also, might be particularly concerned with this aspect since you are taking out a title loan rather than a more traditional loan because of your less-than-perfect credit score. In this sort of situation, you may not be able to afford for it to get much worse. We understand your concerns and are here to answer all your questions on the subject. Having been in the title loan business for nearly 25 years, we have seen it all and can pass on all of our acquired knowledge on to you.

Can Title Loans Hurt Your Credit?

Can Title Loans Hurt Your Credit?Car Title Loans are one of the few and far between options out there for people who are in need of emergency funding. But, have damaged credit histories. We  do this by basing your approval and the amount granted on the current trade-in value of your vehicle. And, your ability to pay off the loan. Many individuals across the nation wish to improve their credit scores.But, they’re not given the opportunity to do so. Some lenders label them as “high risk”. However, here at TFC Title Loans, we see you as more than a mere number! And, we want to help you reach a brighter financial future. This is so that you and your family can prosper!

In this resource article, we will be explaining exactly how Car Title Loans affect your credit score including how it might help it and how it might damage it. Ever since we first opened our doors in 1994, we have been passionate about lender transparency, customer support, and consumer education. We want to help you make the most informed decision possible since any financial decision, even the seemingly small, can make a large impact on your future.

If you want to learn a little bit more about how car equity loans might affect your credit score, then please read this resource article. However, if you have already concluded that you would like to obtain an auto title loan with TFC Title Loans, then feel free to fill out our quick and easy online application today!

Your Credit Score

Your Credit Score Car Title LoansYour credit score is calculated by five separate parts of your credit report. The break down is as follows: thirty-five percent is made up of your payment history, thirty percent is your credit utilization, fifteen percent is the length of your history, ten percent is your credit mix, and another ten percent is your new credit. When you get a title loan, you will have the greatest impact on your payment history at thirty-five percent.

Improving Your Score

Wondering can title loans hurt your credit score? By making the regularly scheduled monthly payments on your title loan on time, in line with the terms and conditions set up with your lender, your payment history in your credit report calculation will start to significantly improve over time. The payment history makes up the largest chunk of your score’s calculation. This means that your credit score will start to get higher as you continue to meet the payments every month. Therefore, it would be wise to strategize! And, budget your monthly payments. Why? So that you know you will have enough money each month to pay those bills. It’s wise to consider setting up an automatic payment online. Why? So that you never forget a due date!

Damaging Your Score

Can Title Loans Hurt Your Credit?Just like with any other lending option out there? If you are not diligent about making payments on time? Or you end up defaulting on the loan at some point? Then, your credit score and credit report may be damaged by that. However, if you keep an open line of communication with us? We are always willing to be flexible if you are struggling to make payments. All we want is to see you succeed.

If you have any remaining questions, please give us a call right away. We have agents standing by the phones who would love to answer any questions that you may have. However, if you are ready to move forward, then fill out our online application today and one of our customer service representatives will give you a call to give you a free quote. Don’t wait, we can get you the funding you need!

Now you know whether or not Can Title Loans Hurt Your Credit!

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Frequently Asked Questions
Are title loans good for emergency money?

Title loans are great for making money in a hurry because you get money quickly and keep your car. No company can match TFC Title Loans when it comes to low interest rate fast cash for any situation.

Do car title loans work the same as home title loans?

Yes, both title loans are given based on the value of the owned property.

Can I get a second car using a title loan?

Absolutely. The key is using the first car's title to put a down payment on your next vehicle. You can build a car collection quickly using this strategy. If you have any questions about which new or classic cars to buy, ask TFC Car Title Loans.

How Much Cash Can i Get?

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