Car Title Loans

Car title loans have emerged as a popular financial alternative if you have bad credit or no credit history. However, before you get one, it is also best to first understand what you are getting into with a car title loan and whether this is the best option for you.

Sure, you’ve read a lot of good things about car title loans and you are now almost sure to get one to solve your financial troubles. Before you jump into this borrowing opportunity, you’d certainly need to know more about this financial solution. Here are some truths and myths about car title loans.

Myth: Bigger Loan Amount
True, you can borrow more money with car title loans but the loan amount also depends on the value of your car. So it is not true that car title loans ALWAYS offer bigger amount as, like any type of title loan, the amount you can borrow will be dependent on the value of your collateral, which in this case is your car.

Truth: Car Title Loans Are Fast Loans
Such loans have emerged as one of the most popular financial sources today and this is for a reason: these loans are so much easier to get than other types of loans. This is because most lenders that offer these loans do not do a heavy background or financial check on you. In fact, you may be able to get a car title loan even with a bad credit score or even if you don’t have any credit history.

Myth: Car Title Loans Lenders Do Not Report Your Repayment Performance to Credit Reporting Agencies.
Many people think that because these loans are also considered “bad credit loans” as they cater to borrowers who have bad credit, lenders do not report your repayment performance to credit reporting agencies. The truth is, they do. So, if you have bad credit, getting a car title loan and doing good on the repayment is one way of fixing your score.

Truth: Lenders Still Consider Your Credit Score
While it is true that you can get a car title loan even if you have the worst credit score in the world or you have zero credit history, it doesn’t mean that your credit score doesn’t matter at all to such lenders. In fact, if you have a good credit score, you may be able to get approved for low-interest car title loan, which will definitely save you lots of money.