How a Title Loan Can Help Improve Your Credit
Even people with the best intentions can wind up struggling with credit problems. They will then find it hard to get approved to buy a home, buy a car, get a credit card and more.
Though it may seem counterintuitive, one of the best ways to improve your credit is to get a loan. Specifically, auto title loans can help you improve your credit quickly, assuming you get the right terms by working with the right title loan company in North Las Vegas. Here are just a few ways that a title loan can help you get better credit:
Get Easy Access
To start, you need to get credit in order to build credit. But you’ll find it very hard, if not impossible, to get credit if you have no credit history or you have a bad credit history. Fortunately, you can get a title loan even if you have terrible credit or no credit.
Auto title loans are approved based entirely on the equity you have in your vehicle. Your credit doesn’t matter because the loan is backed by your collateral – your vehicle. If you default on the loan, the lender can seize your vehicle and sell it to satisfy what you owe.
Depending on how much equity you have in your vehicle and how much other debt you have, you may be able to use a title loan to get enough money to consolidate your debts. Instead of having multiple monthly payments for credit cards and other revolving debts, you can use the money from your loan to pay off all those debts and then have one payment for the loan each month.
By consolidating your debts like this, you can significantly improve your credit. You will have more money each month for paying back debts, and you will have fewer revolving accounts. Just by eliminating the additional accounts, you should see your score shoot up.