A car title loan from Missouri Title Loans, Inc. does not affect your credit score because it is not reported to credit agencies and does not require a hard credit inquiry.
However, that also means a title loan from Missouri Title Loans, Inc. cannot be used to build credit through reported payments. If you are comparing lenders, always ask whether payments, missed payments, or defaults are reported before signing any agreement.
This guide explains what a car title loan is, how car title loans work, what credit factors to understand, and what to review before applying.
Quick Answer: Will a Car Title Loan Affect Your Credit Score?
A car title loan from Missouri Title Loans, Inc. will not affect your credit score because the loan is not reported to credit bureaus.
Missouri Title Loans, Inc. also does not run hard credit inquiries like many traditional lenders. That means starting a title loan inquiry with Missouri Title Loans, Inc. will not create a hard inquiry on your credit report.
Since payments are not reported, this loan also will not help improve your credit score through on-time payments.
What Is a Car Title Loan?
A car title loan is a secured loan that uses a lien-free vehicle title as collateral. To apply, you generally need to own the vehicle outright and have the title in your name.
The vehicle is inspected to help determine its value. That value can affect the amount available if you qualify.
Missouri Title Loans, Inc. offers title loans of up to $15,000 for qualified borrowers. Actual loan amounts depend on the completed application, vehicle evaluation, ability to repay, and other requirements.
Borrowers can generally keep driving their vehicles while repaying a title loan. However, the vehicle title secures the loan, so missed payments can create serious consequences.
Will A Car Title Loan Affect Your Credit Score?
Now for the question we’ve all been waiting for, will a car title loan in Missouri affect your credit? No, a title loan from Missouri Title Loans, Inc. will not affect your credit score because we do not report it to the credit agencies.
We also 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.
How’s The Vehicle Value Determined?
Various factors affect the overall value of your vehicle, and thus, the title loan value of your car amount you may qualify for. They are as follows:
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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.
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Condition: Ensuring you keep up with regular maintenance like tire rotation and oil changes keeps your car, van, or truck in better shape. Ultimately, it stands you in good stead to receive a better title loan price. Cosmetic condition also affects loan value, so be sure to fix up any scrapes or dings.
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Age: Vehicles lose roughly 60% of their value over the first five years. So, the older the car, the less valuable it is.
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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 Apply For 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:
- Choose the Missouri Title Loans, Inc. location you wish to visit via our store location page or arrange for us to come to you.
- Complete the title loan application form. It doesn’t take very long. We ask for basic information only.
- 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.
- 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.
- 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.
- Finally, get your cash either on the very same or next day!
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.
Frequently Asked Questions
Does a car title loan affect your credit score?
A car title loan from Missouri Title Loans, Inc. does not affect your credit score because it is not reported to credit agencies and does not require a hard credit inquiry.
What is a car title loan?
A car title loan is a secured loan that uses a lien-free vehicle title as collateral.
How do car title loans work?
Car title loans use a qualifying vehicle title as collateral. Your documents and vehicle are reviewed, the vehicle is inspected, and the available amount may depend partly on vehicle value and the completed application review.
Do title loan companies check your credit?
Some lenders may check credit. Missouri Title Loans, Inc. does not run hard credit inquiries like traditional lenders.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
