Do Title Loans Go on Your Credit Report?
March 15, 2021 | Mason Roberts
Secured credit lines require collateral for the applicant to get approved. Banks and big financial institutions most commonly use them to secure their interest in a loan. However, an Alabama title loan falls into a grey area where some collateral is needed for security but not as much happens to your credit score.
In fact, most banks rely heavily on what's in an applicant's credit report when they're underwriting a loan. It seems fair, but it's difficult for people who need money fast because of an emergency. So, do title loans go on your credit report or not? It's time we find out once and for all.
What Is an Alabama Title Loan?
To answer the question, "Do title loans go on your credit report," you first have to understand what title loans are (and are not). Title loans are not reliant upon your credit score or payment history. Instead, they depend on the value of your vehicle at the time of your deal. Usually, agents refer to the Kelly Blue Book (KBB) value to determine those figures.
Furthermore, title pawns let you refinance a vehicle after it has already been paid off. That's even the case if your car isn't in the best condition. As long as you meet the state's minimum requirements, you can get approved for a title loan with Alabama Title Loans, Inc. and still keep your credit scores intact.
Is It True That Title Loans Go on Your Credit Report?
The best part about these loans is that they do minimal damage to your credit report. In fact, they're not generally listed on your credit report because they're considered a private deal between the title loan provider and the applicant. Plus, no law says creditors have to submit information to the credit bureaus. So, here, at Alabama Title Loans, Inc. we don’t do that, as our priority is to keep all your information confidential.
TIP: Look up your vehicle's KBB value to get a rough estimate of how much money you'll get for the title.
Do Title Loans Go on Your Credit Report If You Forget to Pay?
The even better news is that title pawns don't negatively affect your credit score even if you forget to pay the bill. Because it's not listed on your report at all, it cannot make an impact regardless of your payment history. Thus, it's easy to get and even easier to manage, especially when unexpected expenses pop up.
TIP: You can get as much as $15,000 per transaction if you meet the requirements.
Do Title Loans Go on Your Credit Report When You Pay Them off?
For the same reason title pawns don't negatively affect your credit, they don't positively affect it either. The contract and payments are not reported to the three bureaus (Experian, TransUnion, and Equifax), so anything you do remains between you and the lender. However, title pawns can help your credit report in many other ways.
That's because high-yield title pawns render significant funds quickly, making it easier to avoid late fees, finance charges, and unnecessary payments. That, in turn, can prevent damaging marks on your credit score and improve the numbers all around.
How Do I Qualify for an Alabama Title Pawn?
Getting an Alabama title pawn is much easier than you think, although getting extra money without involving your credit report is already pretty convenient. But here's what the entire process of applying and qualifying for Alabama title pawns looks like:
1. Fill out an Online Form.
Find a short inquiry form located on the top left of our website. The form requires some basic information about yourself and your vehicle. You'll get an answer within 30 minutes or less, by the way.
2. Get the Required Items Together.
You don't need a pile of information to get approved for a title pawn, either. Unlike traditional banks that become intrusive and judgmental, this is all it takes to get a "yes" from Alabama Title Loans, Inc.:
- Your State-issued driver's license or photo ID
- The lien-free title of the car, truck, or SUV you want to pawn
- Your vehicle for a quick inspection
Keep in mind that this is meant to be a quick and easy process. So, you'll probably get asked for banking information as well, especially after you've been approved. So, be sure to have your account numbers ready or provide the agent with a blank check from an active checking account in your name for direct deposit.
3. Sign Your Paperwork Right away.
If all goes well, and you’re satisfied with the amount offered, you'll need to sign your Alabama title pawn contract on the spot. Then, you'll receive a lump-sum of cash on the very same day.
Apply for Your Alabama Title Pawn Today!
So, do title loans go on your credit report? The answer is no, and that’s definitely not a bad thing in the grand scheme of things.
Whenever you find yourself in a financial hole requiring you to spend a few thousands of dollars out of your pocket, keep in mind that getting an Alabama title pawn is safe and secure for your credit history.
Contact us today for more information or to see how online car title loans Alabama offers can solve your exigent financial problems! And if you’re in urgent need of financial assistance now, don’t waste your time and apply for your title pawn today!