Does Your Credit Score Qualify for a Title Loan?

If you are deciding on a title loan, it may be because you have a poor credit score. Maybe you have great credit but still need a quick and easy way to get money now.
Overall, you may not know what a credit score entails or how its broken up. It’s not something we learn, and it’s not really anything we think about asking.

Payment History – 35%

Your payment history equals 35% of your credit score. This means the 35% of your credit score is impacted by how often you miss a payment and if you’ve defaulted on loans before. If you learned anything about payments on credit cards or loans from school or family, they will usually say try not to miss a payment ever, even if you pay the bare minimum.

Amounts Owed – 30%

Another 30% of your credit score is how much you owe on your loans or credit cards. If you have credit cards that are near max or are maxed out, that can reflect negatively on your credit score because banks see it as a negative aspect with money responsibility.

Length of Credit – 15%

Your credit score is also 15% of the length of time. This reflects how new borrowing can be for you. If you have racked up a lot of credit in a short amount of time, this could negatively impact your credit score.

New Credit – 10%

Think about how many loans or cards you have recently applied for. Running a credit check will impact your credit score the more you try to get approved for a loan.

Type of Credit – 10%

Did you know your credit could be affected by the types of loans you have? If you have a healthy mix of credit cards, home loans, car loans, and other types of finances, it could be better for your credit than having 5 credit cards and no car loan. How your debt is split will affect your credit by 10%.

Tips to Improve Credit Score

Be aware that improving credit does take time. Take action, and keep it steady and consistent over a period of time.

Here are our best tips to improving credit score:

1. Check Credit Reports

First, individuals should pull their credit report (this can be done for free once per year) and verify that the information is correct. A low credit score could be due to errors on your report. If a mistake is found, call one of the three credit bureaus to have the error resolved.

2. Make Consistent Payments

To improve a credit score, make sure all payments are being made – on loans, credit cards, and mortgages – on time. Consistently paying bills will show that the borrower is capable of managing their money well, and as a result, their credit score will go up.

3. Don’t Carry High Balances

If someone is in the habit of using up all of their available credit each month, they should stop! Even if they have the cash available to pay off their high balance, utilizing every last bit of credit an individual has is bad for their credit score. People’s score improves when they have plenty of credit, but not using it all up.

4. Pay Off Debt

If a borrower has any balances that they’re carrying from month to month or are in debt, it’s important to make a plan to pay off what is owed and remain debt-free once that’s achieved. Having debt will drag down a person’s credit score (plus, it’s not good for finances in general!).

Who Will Lend Me Money if I Have Low Credit Scores?

Title loans are one of the only personal loans that those with bad credit may qualify for. Use the value of your vehicle and your ability to pay the loan as your approval¹.

Many customers want to improve their credit score but don’t have the opportunities to since creditors reject them on any other loan or credit card. Give those people an opportunity by giving them a chance to provide a better future for their families.

Title Loan Requirements if I Have Low Credit?

You might be wondering what the requirements are for a title loan if you don’t need a good credit score. It’s actually rather simple and easy to qualify for a title loan. All you need is a clear-and-free title on a vehicle and an ability to pay the loan payment every month¹. This can be a proof of a job or other monetary income you may receive.

How a Loan Can Damage Your Credit Score?

Like any other loan or credit card you may take out in your life, when you don’t make payments or default on a loan, your credit score will drop. That is why it’s important to stay on top of your payments and do not default on your title loan.

The Auto Title Loan Process

All you have to do is follow these three quick and easy steps:

Step 1

If you’re ready to apply for a title loan, we offer you three different ways to apply. The first is the ability to apply online with your phone, tablet, or computer. You just have to fill out our quick application with the basic information regarding yourself and your vehicle. Another way to apply is simply over the phone on our toll-free number where a representative can guide you. You can be approved for a title loan in less than an hour with your free quote3!

Step 2

We will just need a few papers that you may probably already have with you. The list is short and you can complete this part in under an hour.

The documents you may need to get approved are:

• Proof of auto insurance and registration
• Personal Identification
• Pictures of the vehicle
• Vin, license plate, and odometer
• References
• Proof of residency (last 30 days)

Just fax, email, or text us pictures using your smartphone— we will get to work right away.

Step 3

After we get your paperwork, our team will contact you to talk about what your options are¹. After signing, you can choose how you get paid. In some cases, you can pick up your money at a participating money transfer location near you.