Does A Car Title Loan Affect Your Credit Score?

A car title loan can give you much-needed cash quickly. It’s a favored option among those with bad credit, thanks to the minimal requirements. But it's only natural to have many questions — not the least of them being, "does a car title loan affect your credit score?". So, we're going to answer them all right in this post.

A title loan is a short-term financial aid with very few credit requirements. However, it's a secured loan type. In other words, you must submit the title to your car, truck, or van as collateral. Depending on the value of your vehicle, you can receive up to $15,000.

What To Know About Car Title Loans And Your Credit

Will A Car Title Loan Affect Your Credit Score?

Now for the questions we've all been waiting for — will a car title loan in Missouri affect your credit? No, a title loan from will not affect your credit score if you apply at Missouri Title Loans, Inc. We do not report it to the credit agencies. 

We don't run hard inquiries like traditional banks and credit unions do when they're deciding whether to offer you a loan. Such inquiries typically knock a maximum of 5 points off your credit score. However, since we don't report your repayments to the bureaus, you can't use a title loan to improve your score either. Although, if you're using the loan to fund an emergency, this is probably okay.

Why Doesn’t A Car Title Loan Go On A Credit Report?

Car title loans are one of a very few types of personal loans that doesn’t influence the borrower’s credit history. The reason why title loans don’t go on credit reports is because lenders usually base the loan approval on the current value of a vehicle. So, in case a borrower isn’t being irresponsible with the monthly payments, the car title guarantees that the lender will get their money back in the amount of the car’s value. For this reason, title loans are considered a secured type of lending and don’t go on a credit report.

One of the best features about title loans is that bad credit doesn’t affect your ability to qualify for a title loan. Missouri Title Loans, Inc. in particular, accepts applications from people with all types of credit – good or bad. This makes car title loans a possible option for those whose credit has been affected by late payments or discharged bankruptcy.

However, poor credit may impact the total amount of cash you can receive. Though, it’s still better to qualify for a smaller amount due to bad credit rather than not qualify for any at all, especially when you need to deal with an emergency.

getting a car title loan with a lien-free title

How’s The Vehicle Value Determined?

Various factors affect the overall value of your vehicle, and thus, the amount of money we can lend you. They are as follows:

  • Make and model: Brands like Audi, Mercedes, Lexus, Tesla, and Jaguar are luxurious and pricey. You're more likely to qualify for a higher title loan amount if you own a high-end vehicle due to the inflated value. Conversely, a lower-end vehicle means you can only secure a lower title loan.
  • Condition: Ensuring you keep up with regular maintenance like tire rotation and oil changes keeps your car, van, or truck in a better shape. Ultimately, it stands you in good stead to receive a better title loan price. The cosmetic condition also affects the loan value, so be sure to fix up any scrapes or dings.
  • Age: Vehicles lose roughly 60% of their value over the first five years. So, the older the car, the less valuable it is.
  • Mileage: The more miles on the odometer, the more wear and tear your car has suffered. Therefore, the value goes down as the mileage increases.

How To Get A Car Title Loan

It's incredibly easy to get a car title loan as long as you have all the paperwork ready to go. Just follow the steps below, and you might be able to receive the money you need in as little as 30 minutes:

  1. Choose the Missouri Title Loans, Inc. location you wish to visit via our handy store locator page or arrange for us to come to you.
  2. Complete the title loan application form. It doesn't take very long. We ask for basic information only.
  3. One of our highly qualified loan representatives will call you back not long after you submit the form. They will tell you about the process, answer your questions, and define the necessary documents.
  4. Head to the Missouri Title Loans, Inc. storefront you selected earlier or meet at the place that you choose. We can drive to you, if you choose. Don't forget to bring your lien-free vehicle title, your vehicle, and your driver's license.
  5. After a quick vehicle inspection, our representative will determine if you qualify for an auto title loan and offer you to complete the rest of the paperwork.
  6. Finally, get your cash either on the very same or next day!

got car title loan cash

Get A Car Title Loan In Missouri Today!

Car title loans don't affect your credit score, and their lack of requirements makes it easy to obtain one. But, as always, be sure to check whether you truly need one. And if you decide you do, our friendly representatives here at Missouri Title Loans, Inc. will be more than happy to help you. Just give us a call to get started or submit an application form online.

Want to know more? Increase your knowledge of credit and debt here!

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

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.