If you have ever been in a position where you cannot get emergency funds because of a bad credit score, you know how frustrating it can be. You have gotten a bad credit score for any number of reasons, many of which may have been beyond your control.
Some of the reasons people end up lowering their credit score include:
* Unpaid medical bills from a family member who is not insured
* Loss of income caused by a laid off
* Divorce causing a household income to split in two
* Sudden death in the family and additional financial responsibilities
* Living beyond your means and overspending
Why Auto Title Loans? Borrowers Are Being Set Free From Bad Credit History
If you’re facing any of the situations above or have a bad credit history, do not despair, you don’t have to take an unsecured loan with exorbitant interest rates and other fees, as long as you own a car you can use it as collateral for your loan. Here’s how it works.
Once you get a bad credit history, it’s hard to improve it with conventional means. But the good news is that the credit bureaus look at your most recent credit activity to determine your credit rating. When you make payments for a title loan on time, it shows the lenders that you are now a responsible lender.
Borrowers, who have paid-off or nearly paid-off their automobiles, now have valuable assets that can be used as collateral to qualify for auto equity loans. Which are also called a title loans. AZ, CA, OR, NM, and SC borrowers alike are using this loan to start re-establishing good credit.
Additionally, you can use the cash you borrow, to pay for other outstanding debts, such as a delinquent home mortgage. Missing mortgage payments can result in home foreclosure and further damage your rating. There are many ways in which title loans can help you, if you use them wisely. Auto equity loans can also help you improve your score so that you can turn to conventional lenders in the future.
All you need to get approval for an auto equity loan is a clear car title that is paid off or nearly paid off. A secured loan is your best option to get lower interest rates that you can afford to pay.
Find a Reputed Lender
When you do apply for a title loan, make sure you find a reputed lender. Avoid the ones who use predatory lending practices aimed to get desperate borrowers into further debt. Avoid predatory lenders aimed to get desperate borrowers into further debt and destroying your credit score further.
A good lender will have your best interests at heart, offer flexible payment terms and complete confidentiality. If you apply online make sure to use a secure interface, where you can safely submit sensitive personal information. Most will also allow you to apply by phone.
If you’re in need of emergency cash, your car could be your biggest asset. An auto equity loan can get you cash in hand within a few hours of approval. Use an auto title loan to improve your credit score and regain control of your finances.