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Using Car Title Loans to improve your credit score

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Have you recently had credit problems? Perhaps your credit card is maxed out or even closed out on you? You tried to get a personal loan, but banks aren’t lending? Thought of getting a payday loan but the interest rate was too high? If you own your car (or truck, van or suv) you have a chance to get a car title loan and start repairing your credit.

What is a car title loan? It is simply a loan where if you own you car free and clear (no loans against it) you can put it up for collateral and get a loan for up to half its value. Best of all you can still drive and use your car as you pay the loan off!

Car title loans are relatively easy to get. As long as you have a job, a driver’s license and a clear title and your car is worth over $4000, you should be able to qualify.

How a title loan can help your credit score.

First if you have outstanding debts with other creditors, you can use this loan to pay them off. This way those loans are satisfied and can be report to the credit bureaus as paid.

You can use the loan to help budget your monthly expenses and to get your spending under control.

If you have a bad borrowing history, you can change that by showing you are responsible by paying a title loan promptly and even paying it off ahead of time. Auto title loans are a secured loan for the lender because he accepts your car as collateral for the loan. This helps make the interest rate you pay lower than a payday loan or a personal loan. Both have no collateral and are subject to higher interest rates.

When using title loans to improve your credit score, it is very important to remember that you need to make payments consistently and on time. If you are late with your payments, it may increase your interest rate, subject you to additional fees are even repossession of your car.

Summing up, getting a title loan can help correct a bad credit history. By getting this loan and paying it off on time, it shows lenders that you are a good credit risk and could possible help improve your credit score.

Take action now and start improving your credit today.

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