Build Your Credit Score To Avoid A Car Title Loan

Most borrowers who visit this site have something in common. Many are obviously looking to get cash for their pink slip. Some prefer the larger amount that’s available to them with a car title loan versus a payday advance. Most though, are here because they have bad credit. Having a poor credit history doesn’t mean you can’t be approved for short term financing. As you’ve no doubt read throughout this site, a clean and clear pink slip can get you cash with very few questions asked. The downside is that it’s going to cost you. Most applicants who have good to decent credit scores won’t need to use their vehicles title as a way to get a loan. They will probably end up applying for low interest bank loans or get financing from an online installment loan company. That’s why it’s in your best interest to have good credit. If you don’t have a decent credit score than you need to work on improving it. The first step will be obtaining your credit report. Don’t pay money to someone online to get your updated report. The US Government can walk you through the process of how to get an updated copy of your credit report. Let’s discuss the different things you can do to improve your score. With these methods you can avoid the hassle of online title loans!

Say goodbye to high interest rate title loans with a good credit score

Many people don’t know where to start when it comes to fixing their credit history. They may have years of late payments or defaults on credit cards. Others will have judgments and charged off credit cards. It’s not the end of the world if you have one or two dents that affect your credit score. What you want to avoid is the snowball effect that occurs when you start to fall behind. Borrowers in this situation will sometimes give up on making payments. credit report help The dual hit of late charges and continued interest increases make it hard to make sense of the situation. If you find yourself in this situation it’s best to take stock and set some goals. Do whatever it takes to continue paying on the most important bills. These items include your car loan, mortgage and other secured notes. The last thing you want to have happen is to have your house or car repossessed! We had a customer last month who was looking for car title loans as a way to pay her other bills. She wanted to find an auto equity lender that would allow her to use the full value of a clean and clear pink slip. That’s not the way to go! Sure, she would have got a lump sum amount when she handed over her car title, but it’s not a long term solution. Online title loans are really a last resort and should only be used when there’s a viable financial plan in place. Write down everything that needs to be done so you know exactly what you’re dealing with. This includes coming up with a plan to either pay off your creditors or get back on track with a payment plan or some type of debt forgiveness. By getting back to current you can avoid the late fees and hits on your credit score. This will help over the long run and after a certain amount of time there will be more low interest lending options opposed to car title loans.

Be sure your car title loan company reports your monthly payments to the credit bureaus

It’s on to the next step for someone who’s come up with a plan and worked out deals with their creditors. Now it’s time to fix your credit score. There are many companies online that offer credit repair services. But we’ve found it’s often best to do this on your own as you can move at your own pace and save a lot of money as well. If you really want to hire someone, we recommend to do what you’d do if they were a company that provides online title loans. Do your research on their company history and check their online reputation. Do they have a long complaint history or bad online track record? It’s the same as if you were searching for car title loan companies. avoid car title loans by building credit When looking for a decent online title lender you would first want to know the requirements and credit limits of each company. Do the same with your search for any other financial service you need. Take the initiative and be sure the company you work with is the best option in your state. As soon as you start to fix your credit history you should see some movement in your score. We can’t tell you how many times we’ve seem someone who though they had bad credit. Turns out that many times these applicants were the victims of identity theft or general creditor mistakes. Don’t let this happen to you. Verify all the information and numbers on your report. Have you had an auto equity loan in the past? Most online lending companies will report your on time payments to each of the three credit bureaus. Be sure to call your car title lender if you made timely payments and they’re not showing on the report. Little things like this can move the needle and bump up your score very quickly. The ultimate goal here is to come up with a long term plan. Ideally you can build your credit score and avoid the need for any type of car title loans. However, if you have a financial emergency, it’s good to know that with good credit the option is there to work with a bank or credit union. These rates and terms will be much better than what you see with an online title lender and you can keep your vehicle!

Set long term financial goals to avoid having to work with a short term lender.