By marcela • Feb 02, 2022
If you need fast cash , a title loan might be the solution. Title loans are short-term, secured loans that allow borrowers to use the title to their vehicle as collateral. Title loans are typically processed faster than traditional loans, which is one of the many reasons why they are ideal for people who need cash right away.
But if you’re planning on taking out a title loan, it’s important to understand how this decision will impact your credit. Do title loans go on your credit ? Will a title loan hurt or help your credit score? Here’s everything you need to know:
If your credit isn’t perfect, you may be wondering whether you are even eligible for a title loan. There are typically minimum credit score requirements that you must meet when applying for a traditional personal loan. However, a title loan is not a traditional personal loan, so the eligibility requirements are different.
You will need to consent to a credit check when you apply for a title loan, which means your lender will consider your credit history when determining your eligibility. But your credit is only one factor that the title loan company will consider. Other factors, including the value of the vehicle you are using as collateral and your ability to repay the loan, will also impact your eligibility.
The bottom line? You don’t need perfect credit to qualify for a title loan . Most credit types are accepted by title loan companies , so don’t let a less-than-perfect score stop you from applying for a title loan.
Title loan companies report to the major credit bureaus. These credit agencies are responsible for collecting consumers’ credit information and using it to create detailed credit reports that lenders can access for a fee.
Title loan companies send various types of information about your loan to the major credit bureaus. If you are approved for a loan, the title loan company will report the amount you borrow to the credit bureaus, so this new loan will appear on your credit report. The title loan company will also report your payment information to the credit bureaus, which means the credit bureaus will know if you are making on-time payments.
In other words, if you take out a title loan, it will go on your credit report .
Title loans can impact your credit in several ways.
Taking on any new debt, including a title loan, may lead to a slight dip in your credit score. However, this is only temporary, so you shouldn’t let this stop you from getting the cash you need to make ends meet.
A new title loan can impact your payment history, which is one of the main factors that affects your credit score. In fact, payment history accounts for about 35% of your total credit scor e. Making on-time, consistent payments could lead to a significant improvement in your credit score over the course of your title loan. On the other hand, missing or making a late title loan payment could harm your credit score.
Taking out a title loan could also impact your credit mix, which accounts for about 10% of your credit score. Your credit mix is a measure of the diversity of your credit accounts. If adding a title loan makes your credit mix more diverse, you may see a slight increase in your credit score.
If you check your credit report on a regular basis, you may wonder how long it will take for your new title loan to appear. Your title loan won’t show up on your credit report right away. Lenders, including title loan companies, typically report to credit bureaus every month, so it could take about 30 days for a new loan to show up.
Your title loan will remain on your credit report while you pay it off. In fact, it will remain on your credit report for some time even after it’s been completely paid off. If the title loan was “paid as agreed,” which means you repaid it in full, it could remain on your credit report for up to a period of 10 years.
Missed or late title loan payments will stick around for a while, too. If you miss or make a late title loan payment, this could remain on your credit report for up to seven years.
In short, the decision to take out a title loan may impact your credit. However, your actions will determine whether your title loan has a positive or negative impact on your credit. Follow these tips to protect your credit when taking out a title loan:
Following these tips can help you use a title loan to help, not harm, your credit.
Now you should understand how a title loan could impact your credit. If you’re ready to apply for a title loan , follow these simple steps:
That’s all it takes to apply for a title loan and secure the cash you need to make ends meet.
*Loan approval is subject to meeting the lender’s credit criteria, which include demonstration of ability to repay the loan. Not all applications will be approved.
The post Do Title Loans Go On Your Credit? appeared first on (EN) 1(800) Car-Title®.
USA Patriot Act Disclosure: Important information about procedures for opening a new account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you apply for a loan, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Loans may be made by one of several lenders, including: Wilshire Commercial Capital L.L.C. dba 1 (800) Car-Title and Wilshire Consumer Credit, a licensed lender in certain states. Loans not available in all states. In California, loans are made pursuant to a Department of Business Oversight California Finance Lenders License. See State Disclosures for additional information.
Accessibility Statement. We are committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone and applying the relevant accessibility standards in compliance with Web Content Accessibility Guidelines. For feedback on our website accessibility or if you have any problems with the access of our website please call our toll-free number 800-589-0290 or email us at WilshireCustomerCare@WilshireConsumer.com and we will assist you.
Wilshire Commercial Capital, LLC dba 1 (800) Car-Title and Wilshire Consumer Credit is located at 4727 Wilshire Blvd, Suite 100, Los Angeles, CA 90010.
TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL Tracy Bergiman, Director of Compliance, 4751 Wilshire Blvd. Suite 100, Los Angeles, CA 90010, 323-837-5775, tbergiman@westlakefinancial.com.
New Mexico Only: This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at
(505) 476-4885 or visit the website: https://www.rld.nm.gov/financial-institutions/.
Copyright. Wilshire Commercial Capital, LLC. dba 1 (800) Car-Title and Wilshire Consumer Credit. All Rights Reserved.