Build Your Credit Score And 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 end up applying for low interest bank loans or get financing from an online installment loan company. You may hear personal loans have high interest rates and that’s true. But in reality, the finance charges are much lower than what you see with a secured loan where the lender doesn’t check credit. 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.

Say goodbye to high interest loans with a good credit report

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. consult a credit repair company if you have high rates from an online title lender 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 the best online loan offers 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 get a lump sum amount when she handed over her car title, but it’s not a long term solution. Online title loans are a last resort in a financial emergency. They should only be used when there’s a viable financial plan in place. Write down everything that needs to be done so you know what you’re dealing with. This includes coming up with a monthly plan to pay off your creditors. Or get back on track with a payment plan and debt forgiveness. By getting back to current you can avoid the late fees and hits on your credit reporting history. This will help over the long run. After a certain amount of time there will be better 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 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 using the collateral in your vehicle and build 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 the three credit bureaus. Be sure to call customer service if you made payments and they’re not showing on the report. Little things like this can move the needle and bump up your FICO score. The goal here is to come up with a personal budget and viable financial plan. Ideally you can increase your FICO score and avoid the need for any type of car title loans. In this situation you can turn to personal loans with lower rates than what you see with a title lender. 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 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 secured lender.