Many consumers tend to wonder if an auto title loan can affect their credit. To answer this question, yes, an auto title loan does have the potential to affect their credit score. Since some lenders do report to the credit bureau, this can go on your record as a “paid auto” on your credit report once the auto title loan has been satisfied. This is at times, the sole purpose of taking out an auto title loan for many customers. This is a great option for someone who would like help building their credit, however, they just cannot get approved for a credit card or any other type of credit building option.
What are some ways that an auto title loan can improve my credit score?
Aside from the fact that this will go on record as a paid auto loan at the end of your loan, your payment history will display how you came to complete your auto title loan. If you had made your payments on time every month throughout the course of your loan, it will show that you are taking the necessary steps to improve your credit.
Can an auto title loan damage my credit score?
In the same way that an auto title loan can help your credit, it can lower your credit score if the consumer does not hold up to their end of the agreement. If you stop making your payments, or if you go into default, then in that event, it could hurt your credit. However, if you stay up to date on your payments, this will not be an issue for you. Remember, communication is key. A lot of the time a lender is willing to work with you if you are having trouble with your payment. If this becomes an issue, call your lender to ask for an extension on your payment, there might be a late fee attached to the payment, however, you would not go into default on your loan.
How is my Credit Score Judged?
Part of what a lender would look at is the customer’s “FICO” score. If you have little to no payment history, or if you have no established credit, this will as a result, lower your fico score.
Another part of what could be looked at is your “score factor”. What determines your score factor are factors such as your payment to duration ratio on a loan or line of credit as well as how it was resolved.
Will I be denied for having a Low Credit Score?
The approval for an auto title loan can be much easier than most other lending options. However, there are some lenders who do check your credit. Now, this does not always mean that you will be denied for having a low credit score. A lender understands that people searching for an auto title loan have already exhausted their efforts in trying to obtain another loan product that is very stringent on the credit check. Sometimes a person with a lower credit score can still be approved for the auto title loan, however, it might result in a higher interest rate. Still, at the end of the day, you can still have a chance to get the financial relief that you have been searching for.
How to apply for an auto title loan with Max Cash Title Loans:
Applying for an auto title loan with Max Cash title loans is a very simple process. You can either call or text us at 855-561-5626, you can send us an email with a request at processors@traditiononemedia.com, or you can simply apply at our website in the “apply now” section https://www.maxcashtitleloans.com/apply-now/. Please feel free to ask any of our trained loan officers any questions or concerns that you might have in regards to the auto title loan process. We understand that the everyday consumer does not have all the information that they need in order to make an informed decision. We here at Max Cash title loans are very passionate about giving the consumer an unrivaled customer service experience, our highly motivated staff is waiting to hear from you today.