How a Nevada Title Loan Can Improve Your Credit
Nevada title loans are popular because they do not require a credit check. Those who have been shot down through traditional avenues because they have bad credit or a weak credit history can still get the cash they need by applying for a Nevada car title loan. All they have to do is show that they own a car and have the means to pay back the loan.
Since NV car title loans do not require a credit check and are not reported to your credit, simply paying them back on time won’t do anything to help you boost your credit. However, here are a few other ways that getting a title loan can help you improve your credit:
Pay Down Debts
Your debt-to-income ratio has a big impact on your overall credit score. If you have too much debt in comparison to your income, creditors will be less likely to lend you money. With a bad debt-to-income ratio, you can also have a problem getting good insurance rates, opening up a phone line, or even qualifying to rent an apartment.
A title loan in North Las Vegas can give you enough money to pay off credit card or other debts, depending on how much the debts are or how valuable your car is. If you can’t get enough to pay off debts with a title loan, you can at least pay down your balances to improve your debt-to-income ratio. Ideally, you should have no more than a 30 percent balance on your credit lines. However, keeping your balances under 50 percent will keep your score healthy.
Since title loans do not appear on your credit, this is a bit of a sleight of hand. You aren’t eliminating your debt – you are just transferring it so that your credit score improves.