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.
Free Up Money
Even if you don’t have enough equity to consolidate all of your debts, you can use the money from your title loan to pay down some of your debts. For example, if you have two credit cards with balances of $7,000 each, but you can only get a $10,000 title loan, you can pay off one card and part of the other, or you can pay off a bit of each. In doing this, you will significantly decrease the debt-to-credit ratio on those accounts, which will improve your credit worthiness.
When lenders look at your credit history, they don’t just want to know if you have paid on time. They also look for indicators that you are managing your finances responsibly. If you have credit cards that are maxed out, that could indicate that you have limited resources for paying your bills. By lowering the balances on your credits in proportion to the credit limit, you will be a much more attractive candidate for credit.
Sometimes, the best way to have better credit is just to get credit. North Las Vegas auto title loans help you get credit even when you have been rejected by other lenders, giving you the chance to start building a positive credit history or to heal your poor credit.
Title Loans 365 in Las Vegas offers auto title loans for cars, trucks, and RVs. We don’t run a credit check to approve the loan, and you can get approval within minutes. We are a top title loan company in Las Vegas, and we have a reputation for great service and great rates. Visit us online to find out how much you can get and what kind of terms we can offer you. It could be the start of taking back your finances and finally getting the credit you need to meet your goals. Contact us today.
TITLE LOANS 365
1810 E Sahara Ave #391
Las Vegas, NV 89104