Do You Need Credit for A Title Loan?

If you’re in need of fast cash, borrowing money with a title loan might be the solution. A title loan is a type of secured loan that allows you to borrow money by using the title to your vehicle as collateral.

You won’t need to give up your vehicle to borrow money through a title loan. You can continue to drive your vehicle so long as you  make payments on time for your loan, but the lender will put a lien on your title until your loan has been paid in full. Title loan applications can typically be processed quickly, which is why they’re a great option for borrowers in need of fast cash.

If you’re considering applying for a title loan, you may be wondering whether your credit will impact your eligibility. Do you need credit for a title loan? Here’s what you should know:

Do You Need A Credit Check to Get A Title Loan?

It’s common for lenders to check your credit when determining whether or not you are eligible for a loan. This applies to all types of loans, including title loans. If you apply for a title loan, you will most likely be asked to consent to a credit check.

Performing a credit check allows your potential lender to see how you have managed debts in the past so they can determine what type of borrower you will be. Some of the many factors your lender will look at when performing a credit check include:

●     Late or missed payments

●     Credit usage

●     Credit limits

●     Open accounts

●     Closed accounts

●     Recent credit inquiries

●     Bankruptcies

●     Overall credit score

This doesn’t necessarily mean you can’t get a title loan if you have a late payment or high credit usage on your credit report. No potential lender expects you to have a perfect credit report.

If you want to see what your potential lender will find during a credit check, consider pulling your own credit report prior to applying for a title loan. You are entitled to one free copy of your credit report every year from each of the three major credit reporting bureaus.