Credit Rating and Your Car Title Loan Application

Getting a car title loan doesn't rely on your credit rating. These loans are fairly easy to get regardless of your credit score because you are using your car as collateral. You must be able to show proof of income and that you own your car free and clear with the title when you apply for a car title loan. If your car is older than 8 years old, you likely will be denied for the loan because of the value of your car.

 

Paying Back the Car Title Loan

When you make the car title loan payments on time, you will be able to keep your car and possibly improve your credit score. When you don't make the payments on time, the car title loan company has the right to come repossess your car, and they will. It won't hurt your credit as the car was up for grabs, but it can make life difficult for you. If you don't have a car, you will likely have trouble getting back and forth to work which will make it harder to meet all your other financial obligations. If you can't make your payments as agreed, talk to the loan company. Also remember that car title loans often come with heftier interest rates and fees as a result of the risk involved.


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