Many consumers have found themselves in a financial struggle because of debt issues. Debt issues come up for a wide variety of reasons, including unemployment, medical problems, household changes and the like. One positive aspect of making regular payments on a title loan is that is has the potential to pull you out of the debt abyss A title loan has the potential to:
- Get you back on track
- Improve your credit
- Help with short-term financial emergencies
The following is some information on the ways that you can use a title loan to improve your credit.
What is a Title Loan?
The first thing to understand about a title loan is what it is. A title loan is a cash advance that uses your car as security and is based on your ability to repay. What that means is that the lender will either place a lien on your vehicle, or it will physically hold your title until the end of the loan term. The lender will allow you to keep driving your vehicle during the course of the loan repayment period.
The amount of the cash advance that you receive depends on the value of your car and your ability to repay the amounts borrowed. Each state has a minimum loan amount, and your vehicle must have a value that is equal to or greater than the amount of money that you want to borrow. The loan term varies depending on the lender that you use. If you are looking in the Chcago area, try MaxCash Title Loans.
A Title Loan May Help You Improve Your Credit!
There are two ways you may be able to improve your credit score with a title loan. First, you can use the funds that you receive from your title loan to conduct a debt consolidation of sorts. You could use your $3,000 loan to pay all of your scattered debts, for example. Paying all of those accounts could potentially improve your credit score. Another way that you can use the title loan to potentially improve your credit score is by repaying it on time. We report your payments to all the major credit bureaus so that you get credit for your payment history, which may improve your credit score. Title loans can be a wonderful tool for you as well as a means to resolve a financial emergency. Contact us now and start your journey on the path of improving your credit.