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.
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 are able to 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 are not given the opportunity to do so since lenders label them as “high risk”. However, here, at TFC Title Loans, we see you as more than a mere number and want to help you reach a brighter financial future 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 title 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 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.
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 which 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 so that you know you will have enough money each month to pay those bills. It would also be wise to consider setting up an automatic payment online so that you never forget a due date.
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!