How To Use An Auto Title Loan To Improve Your Credit
September 25, 2014 Leave a comment
You might be in a situation where you need cash and you need it quick. However it is difficult to get the loan that you need because you have bad credit. This is where an auto title loan can help in a couple of different ways. Read on to find out just how an auto title loan can help you and get you the money that you need quickly.
Get The Money You Need Quick
If you own your car and hold the title in your hands you could be holding the key to the money that you need. This is especially good when you have bad credit and an emergency happens where you need money. This could be for things such as car repairs, medical bills, a home improvement that cannot wait or a grubstake to get started in business. Most of the time you will receive your money the same day and a credit check will not be necessary.
Auto Title Loans To Improve Your Credit
When you apply for a traditional loan the first thing that is taken into consideration is your credit history and your credit score. Your credit score might be on the poor side if you have fallen behind in paying your bills, had to file for bankruptcy or for many other reasons. By using an auto title loan it is possible to get the loan you need and start rebuilding your credit history. The way this happens is that you will need to first be sure that the lender is reporting your loan to the credit bureaus and then you will need to stay current on your repayment schedule. The more payments you make and paying off the loan in full will add substantial points to your credit score and will help to improve it greatly.
Auto-title loans should only be considered for a short-term solution and not a long-term solution. Most of these loans will be required to be paid back in full within a month however there are lenders who will let you choose how long you need to pay them back. It is important that you make the payments as scheduled because if you miss the payment your automobile becomes the property of the lender and they can do with it as they please to obtain the money to pay your loan in full. If the lender does not get the complete amount to pay off the loan you will still be responsible for the balance that is left. Thus auto title loans can be the easy solution to a short-term financial drought but it is important to remember that you will need to pay this loan off within a short period of time and that even though the loan is small you might be able to use it to rebuild your credit. But to ensure that your credit score improves, be sure to make every payment on time and get the loan paid in full. If you do this you will see your credit score jump dramatically and you will be on the road to a better credit history within a short period of time.