Do Title Loans Affect Your Credit?

If you’re determined to get a title loan and have done preliminary research, you might know by now that your credit score doesn’t play much of a role when title loans are concerned.

Namely, as your credit history isn't a factor, your score won’t influence your eligibility at all – so you can freely apply and get approved even if your credit score is bad, or nonexistent altogether.

This makes car title loans some of the most accessible loans around, which makes them appealing enough that many potential borrowers stop with the research and apply straight away.

But if you wish to dig a little deeper, one of the questions you likely want answered is how much of an impact title loan will have on your existing credit score.

Let’s break it down step by step.

Is It True? Do Title Loans Affect Your Credit?

No, title loans don't affect your credit certainly not when Missouri Title Loans is concerned.

Missouri Title Loans application requirements are very clear and straightforward. The loan is entirely between you and the lender, and the lender won’t be involving any credit bureaus.

Do Title Loans Affect Your Credit Negatively?

Many might think that as title loans aren’t traditional bank loans, their impact upon the credit history is negative by default, as traditional financial institutions might consider them a “lesser” type of loan.

As mentioned above, Missouri Title Loans won’t be reporting the loan to any credit bureaus, so the fact that you’ve acquired a title loan won’t impact your credit negatively at all.

Do Title Loans Affect Your Credit Positively?

While non-involvement of credit bureaus is certainly beneficial in certain aspects it could be detrimental in others.

Namely, while your credit won’t be impacted negatively, it won’t be impacted positively either. This might matter to those whose credit scores are already bad, and thus are experiencing hardships acquiring more traditional loans.

While bad credit doesn’t bar you from getting a title loan in any way, shape, or form – if your primary reason for acquiring one and paying it off, was to improve your credit score, unfortunately, it’s not a strategy that will work.

Paying off a title loan won’t help your credit scores, even if you pay them off like clockwork every month.

Do Title Loans Affect Your Credit If You Encounter Problems Paying Off The Title Loan?

But what happens if you run into financial trouble while paying off the loan? Does that influence your credit?

Again – no, it doesn’t.

The loan stays between you and the lender, so if you find yourself unable to follow the existing plan, you can contact the lender and try to find out if it’s possible to readjust your payoff plan.

Having to negotiate the terms and adjust the payoff schedule won’t impact your credit.

Do Title Loans Affect Your Credit If You Fail To Pay Off The Title Loan?

During a financially stressful period, you may fail to keep on top of how your payoff is going you might miss your window of opportunity to notify the lender about failing to make your payment.

One option your lender might offer you, in this case, is the “rollover” – i.e. prolonging the payoff period by “rolling” the old loan over into a new loan.

This, again, stays between you and the lender. The “rollover” won’t be reported to the credit bureaus or collection agencies – and thus it won’t have any impact on your existing credit score.

When Should I Apply For A Title Loan?

Before you apply for a title loan, do remember that acquiring debt should always be done responsibly, and abusing any kind of debt – including title loans – won’t benefit you in the long run.

A title loan is an optimal option when you’re dealing with a time-sensitive problem that needs to be fixed quickly, otherwise, you’re risking it escalating and costing more down the line.

If the problem isn’t time-sensitive, you should try to raise necessary funds from other avenues first – avenues that won’t add to your financial obligations.

How Do I Apply For A Missouri Title Loan?

Here are the steps for applying for a title loan in Missouri.

1. Go to the Missouri Title Loans, Inc. homepage, select a store location, and submit the application form;
2. Wait for the store representative to contact you and set up a meeting;
3. Drive your car to the meeting, and have your government-issued ID, and your car title (it must be in your name and completely lien-free) with you;
4. Let the representative assess everything to determine if you qualify for the loan;
5. Get approved and get the cash!

All in all, it this entire process takes, on average, around 30-40 minutes.

Get a Missouri Title Loan Today

Now that you know that title loans don't affect your credit, why not apply for one today? The process is simple. Fill out our online form or call us today.

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.