Auto Title Loans - How You Can Use Them to Fix Credit Report Problems
There are many unfortunate occasions in life that call for quick cash. Hospitalization, death, accidents, home and car repairs; these are all situations where an auto title loan can save the day. If you want money quickly but have a low FICO score, one choice is to get emergency funds via an auto title loan.
Are There Errors in Your Credit Record?
There are a lot of reasons why you might have a very low score. A few of them include failure to make loan or mortgage payments or charge card dues in bankruptcy, injuries, and living beyond your means. Two more common reasons for a low FICO score are reporting mistakes and identity theft.
These unfortunate situations occur not because of your inability to make timely loan payments, but because of human error. If you don't get approved for a traditional personal loan, it's frequently due to a terrible rating.
If you are unsure about the way your score took a dip, ask your credit report from the 3 main credit bureaus. Each of the bureaus provide free annual credit reports that you could ask to keep track of your score. Go on your account carefully to check for human and other mistakes. Under the Fair Credit Reporting Act (FCRA), you have the right to dispute inaccurate information in your report.
To do it, you must write and send letters directly to this agency and the lender identifying the incorrect information. However, it can take months, or even decades, to get errors eliminated or amended from a credit file, so be prepared for a possibly difficult and frustrating procedure. As you're taking measures to get errors in your score fixed, start looking for different alternatives such as an automobile title loan that offers a reasonable interest rate. Repaying them on schedule can help you enhance a poor FICO score.
It is possible to get an auto title loan for fast money by using your automobile title as security. All these are subprime loans as they're given to borrowers that are high-risk, but in a pinch, you can frequently get your cash in hand in a matter of hours.
Employing An Auto Title Loan to Reestablish Credit
The benefit with choosing auto title loans is that you get to keep and drive your car while repaying your debt. Thus taking one won't disrupt your lifestyle at all, except you need to provide your auto title as collateral and manage your budget so as to repay the debt on schedule.
As credit bureaus give more significance to current activity than to past history, repaying a debt on time will demonstrate the ability to manage your finances responsibly. If you work out a strategy to make payments and on program, in accordance with the agreement, you are able to establish a positive payment record which will reflect well in your FICO score.
To utilize an automobile loan to renew charge, its better to choose a short-term loan with a lender that offers competitive interest rates, so you will be paying the least amount of interest over the term. Also locate a lender which has no pre-payment penalties so you may repay earlier when possible.
