Your credit score is the primary qualification that most banks and other financial institutions are taking into consideration before you will be approved for financing. It is important to ensure your score is at least 670 for most lenders to consider you qualified for the best loan offers. Your payment history and utilization ratio or the ratio of your balance to your credit limit are the two primary determinants of your credit score.
Other factors being considered are:
- The length of your credit history
- New application for a line of credit
- Types of credits you have
By knowing what factors affect your credit score, it will be easier for you to find ways to pull it up.
Getting Bad Credit
It will take you years to establish a solid credit record, but it will only take a few months for it to be destroyed. Late payments and huge unpaid debts significantly decrease your score. Once your score drops to 580, a majority of the lenders will refuse to extend financing to you. If your score will further shrink to 579 and below, lenders will view you as a risky borrower and will decline to extend loans. The rejection of every loan request will continue until you can pull up your credit score again.
Car Title Loan
Car title loan holds the distinction as one of the few short-term financing options that don’t run credit checks for approval. We look at the assessed value of your car in determining the maximum amount that you are eligible for. Using the title of your vehicle as collateral, you can instantly get the cash you need for expenditures. Another great feature of car title loans is that it offers flexible repayment options. Everyone who avails a car title loan can expect affordable monthly payments and interest rates.
Can Title Loans Pull up your Credit Score?
There’s no doubt that car title loans can provide you the cash you need in an efficient and quick process.
1. The number of new line of credits that you are trying to apply for affects your credit standing. Since no credit checks will be done when applying for a car title loan, it will not be counted as another application attempt causing no harm to your credit ratings
2. Car title loan offers generous loan amounts especially if your vehicle is relatively new and almost paid off. You can use the cash to start paying your past due bills and other loans with higher interests. Once you can pay your balances, you can lower utilization rate. Lower utilization rates will result in an increase in your credit ratings.
If your credit score is better left unnoticed and your goal is to improve it, then consider applying for a car title loan today. Title loans can help you pay off some debts which can lead to an improvement in your credit score. Contact us today to know more about affordable car title loans in your area.