How Will Online Title Loans Affect My Credit?

Wondering how an online title loan affects your credit score? While these loans offer quick access to cash, they can impact your financial health in both positive and negative ways. Before applying, it’s important to understand how the process works and what it means for your credit history.

In this guide from Utah Title Loans, Inc., we will explain the effect title loans online can have on your credit score. We will also review whether bad credit borrowers can get approved and the approval process for car title loans in Utah.

Do Online Title Loans Affect Your Credit Score?

When seeking a personal loan for emergency financing, many borrowers worry about the credit impact. They may think that a low credit score will affect their ability to get approved, and even if they do, borrowing money can drastically lower their credit score.

Neither is a concern for those who opt for online title loans for two reasons: no hard credit inquiries are made, and no reports are sent to the major credit bureaus. Since title loans online are secured loans, they offer several advantages for those seeking to minimize the impact on their credit score.

Learn more about why the title loan credit score impact is minimal below:

1. No Credit Check Required For Title Loans

When shopping around for rates for loans at banks, they will likely conduct a hard credit inquiry to see what your credit score is. They use this score to determine your reliability in repaying the loan. However, multiple hard inquiries can lower your score by up to 10 points each and stay on your report for two years.

You will not have to worry about the impact of a credit check with online title loans because we do not conduct hard credit inquiries. You secure the loan using your lien-free vehicle title. Because you offer collateral as security, we don’t require borrowers to prove their creditworthiness. If you fail to repay the loan, we have protection in the form of your vehicle title.

No hard credit inquiries means no lowered credit just to verify if you qualify for an online title loan.

2. No Credit Bureau Reports

One of the other reasons a bank loan may lower your credit score is that they have to report their loans to the three major credit bureaus: Experian, Equifax, and TransUnion. They will be notified that you borrowed the money, lower your money temporarily, and adjust it based on how you handle repayment.

You will not need to worry about that with car title loans at Utah Title Loans, Inc.. We do not report our loans to the major credit bureaus. You can borrow money without them knowing to keep your score unaffected. That means you cannot build up your credit by making title loan payments on time, but it also means your score won’t go down if you miss a payment.

Can Online Title Loans Help Your Credit Score?

Repaying your title loan on time won’t affect your credit score because we don’t report them to credit bureaus. However, it can help if you use the money to afford other costs.

Missing payments on your rent, mortgage, student loans, car loan, etc., can lead to a credit score drop worth 50 to 100 points, depending on how much you miss it by. Failing to make a payment within 30 days of the due date will lower your score and stay on your report for seven years.

By borrowing a title loan, you can ensure you make your payments on time if a financial emergency hinders your ability to pay your bills. For example, a title loan can help if you miss time from work due to an injury. You can make sure you pay everything on time, avoid credit drops from missed payments, and establish a positive payment history that can increase your score.

Remember, payment history accounts for 35% of your credit score, so making payments on time can help increase your credit score.

Title Loan Repayment Impact On Your Credit

As mentioned above, making your payments on time for a title loan will not affect your credit score. We don’t report our loans, so paying them off on time without 30 days will leave your credit score unaffected.

However, failing to make your payments on time can affect your credit score. If you default on your loan, meaning you miss multiple payments in a row for 30-90 days, the creditor can seize your vehicle. They have your car title and can use it to recoup the value of the loan you didn’t pay back.

Defaulted loans will show up on your credit report, even for title loans. It will lower your credit score by over 100 points, and you won’t have a legal right to your car anymore. That’s why it’s important to have a repayment plan before borrowing a title loan. Ensure you can afford repayment and borrow only as much as you need, so you can afford it.

How To Get An Online Title Loan In Utah

As long as you ensure you can afford repayment, an online title loan is a great financing option for borrowers who need fast emergency cash. You won’t need to prove your creditworthiness to get approved, and you can even borrow title loans for bad credit.

The approval process also takes no time at all, with some borrowers getting approved the same day they apply. You can begin the process online and get approved in person in less than 30 minutes.

Here is the step-by-step guide for getting online title loans in Utah:

• Fill out the online form – Navigate to the online form on this website’s home page. There, you can provide your full name, email address, phone number, zip code, and year, make, and model of vehicle. This takes less than five minutes. Submit the form, and one of our loan representatives will review it before calling you.
• Speak to a loan representative – We will call you to discuss everything you need to know about online title loans, including requirements, loan amounts, and how the process works. During this conversation, you can ask questions to verify anything you are uncertain about. You can then find the closest Utah store location to you, where you can continue the process.
• Bring the required items to one of our stores – The required items you will need to bring are your driver’s license, lien-free vehicle title in your name, and your vehicle for an inspection. We will verify your documents and ensure your name matches across them. We will also inspect your vehicle to determine your loan amount. This process takes less than 30 minutes.
• Sign the loan agreement – Our loan rep will explain how much you can get approved for. If approved, you can now sign the loan agreement to finish the process. With the process complete, you can receive your title loan cash later that day or by the next business day.

Get Online Title Loans for Bad Credit – Borrow Up To $15,000 Today!

When you need quick access to emergency funds, Utah Title Loans, Inc. can help with our online title loans. You can borrow money today with no credit check required and without worrying about lowering your credit score. Borrow money today based on the value of your vehicle, not your creditworthiness.

Ready to get the money you need? Fill out our online title loan form to begin, and visit us in person to get approved within 30 minutes!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.