Loans

How Much Can You Get for a Title Loan?

In times of financial crisis, a loan provides a means for dealing with money woes. The hard cash offered by a loan can cover immediate expenses.

At least temporarily, problems derived from those expenses go away. Of course, for this to happen, the borrower must be approved for the loan. The loan amount must deliver the necessary amount of money.

Anyone with bad credit or limited income might find a title loan a reliable way to borrow cash. An important question does come up here. “How much money can you get from a title loan?”

man and woman shaking hands and closing the deal

Does a Title Loan Affect My Credit?

If you’re thinking of applying for a title loan, you may be wondering how the loan will affect your credit. Many individuals who apply for title loans have less than perfect credit and are worried whether using this type of loan will lower their credit score even further.

Title loans are a type of credit product that even individuals with poor and fair credit scores can still qualify for. Unlike with unsecured loans, your approval for a title loan will be based on how much you earn each month and the street value of your vehicle.

Provided that you always make your payments on time, taking out a title loan has the potential to help you improve your credit history, which can help you qualify for various other types of credit in the future.

How Your Credit Score Works

Credit bureaus base your credit score on a wide range of different factors. The score helps lenders quickly see whether you’re an acceptable risk when lending you money. Employers, landlords and insurance companies can also use your credit score, so it’s important that you maintain one that is as high as possible. Here are the factors that are used to determine your overall credit score:

Payment History – 35%

Your payment history makes up the most important part of your credit score. As the name implies, your payment history considers how you’ve made your payments on various credit products. Always making your payments on time will raise your credit score, while having late payments will lower it.

Credit Utilization – 30%

Credit utilization refers to how much of your credit limit you’ve used up on revolving credit accounts, most notably credit cards. For example, if you have a credit card with a limit of $5,000 and have a balance of $2,500, your utilization is said to be of 50 percent.

Having credit cards that are nearly maxed out shows that you’re in debt and a higher credit risk, which lowers your score. This is why experts recommend that you use less than 30 percent of your credit limits.

Length of Your Credit History – 15%

The length of your credit history is the age of the oldest account on your file. The longer your credit history is, the higher your score will be.

Credit Mix and New Credit – 10%

Credit mix is the mixture of different accounts, such as credit cards, consumer loans and mortgages present on your file. Having various types of credit accounts open will increase your score. You should also know that every time a lender checks your credit, this lowers your score by a few points, as it shows that you’re seeking new credit.

Calculate a Loan Estimate

The amount of money you can borrow with a car title loan varies from one lender to the next, but will typically range between $2,000 and $50,000. The main factor that will determine how much you can borrow is the current street value of your car. You can use an online car title loan calculator to get an idea of how much you can get based on your car’s make, model, year and mileage.

How Title Loans Could Improve Your Score

Title loans have the potential of improving your credit score if you make your payments on time each month, according to your lender’s terms. After making a few months of payments, your credit score will begin to increase as your payment history will begin to look much better. Your score will keep improving as you make payments to pay off your loans.

car loan keyboard button

How to get a car loan after bankruptcy

Filing for bankruptcy may have been one of the best things and worst things that you have done in years. Bankruptcy can bring immediate relief to an unbearably stressful financial situation, and this may have been a situation that you had no other reasonable option to get out of.

On the other hand, after filing for bankruptcy, you are faced with the monumental task of trying to rebuild your financial life and your credit rating. In many bankruptcies, you may keep one of your vehicles.

online title loan application at computer

Fast Online Title Loans

Have you ever noticed how emergencies tend to strike at the worst of times? They usually happen when you are ill prepared to deal with them emotionally and financially.

You might be between paychecks when your refrigerator starts making strange sounds, the dog gets sick and needs to see the vet or your tax bill comes in really high.

Unless you have a bit of cash stashed away to deal with these unforeseen bills, you could be in a tough position.

car loan keyboard button

How Texas Lenders Decide Your Auto Loan Rate

If you are on the market to buy a new or used vehicle and you need financing, you’re going to want to have a good idea of what a good auto loan rate is for you. Lenders determine auto loan rates based on a variety of factors unique to the individual buyer. You need to shop around to get the best rate, but you also need to know how to evaluate different offers.

car cash loan

Innovate To Service Subprime Portfolio Worth Millions

Innovate is an auto finance dealer based in the United States. They are a company who specializes in purchasing and servicing portfolios of vehicle loans from every state. They have currently went through some changes and are now going to be retained by an investment firm that works with many different countries.

They are being retained to source more than $50 million dollars worth of auto loan portfolios that are subprime. A representative of the company confirmed this information last week.