Can you Improve Your Credit Rating with a Car Title Loan?

Are you struggling to make ends meet because you have bad credit?  If this is the case, consider how a car title loan can make a difference. For example, credit ratings do not improve over time because you do nothing.  Instead, you must actively work with creditors to take out loans and pay them back consistently on time.  Car title loans are one way that this can be accomplished.

What is a car title loan?

To get a car title loan, you do not need to have good credit.  What you do need is an extra set of keys, a job, and the title to your car.  Once you have these three things, you can fill out the paperwork to get a car title loan. After the loan is complete, you will get to keep your car, but you will be expected to repay the loan fees and interest rates each month. Within a predetermined period of time, the loan will need to be repaid in full.

How is a car title loan a good step for credit repair?

When you cannot obtain a credit card or unsecured loan, this is a sign that your credit score is substantially low. On the other hand, if you have a form of collateral, like a car, you can get a car title loan.  All credit score ratings companies need to know is that you are using credit and paying it back on time.  Over time, these actions will improve your credit scores.

Finding a reputable lender

Since your goal is to improve your credit score by making payments on time, you will want to avoid unreliable lenders that do not explain the contract to you.  If you do not understand what you are doing, a missed payment can instantly erase all the hard work you have done to lift your credit score.  For instance, make sure that there is not a clause that indicates that after you pay off the loan, you will be responsible for additional payments.

Get rid of your bad credit rating with a car title loan

To start improving your credit rating, give us a call or stop by one of our locations today.  We will answer any questions you may have and get you the financial help you need.  At Bay Area Title Loans, we are happy to help you understand the way our loans work, and we look forward to being a solution for your credit rating issues.