Everyone at some point needs money fast, but what are you to do if payday is just too far away? Whether you need money for a bill, groceries, medical procedure, or even your kid’s birthday – a title loan can help you get the money you need with a quick turnaround time. However, if you are considering a title loan, one of the first questions on your mind is if the loan will hurt your credit.
Here, we will take a look at exactly what a title loan is, and if it can hurt your credit. When in doubt, always be sure to discuss the terms and conditions of your title loan with us so that we can ensure you fully understand your commitment.
What is a title loan?
A title loan is a small, short-term loan in which you can borrow money against your vehicle or motorcycle. In return, the lender such as A1 Cash applies a lien on your vehicle until your loan is paid in full. The purpose of the lien is to ensure a payout to your lender, should you fail to uphold your end of the deal by not paying off your loan.
How much can I borrow with a title loan?
The amount that you can borrow is dependent on the value of your car, with a maximum limit of $2,500. We do require that the title is clean, and you must have a valid driver’s license to be considered for approval. There will be a simple inspection of your vehicle, and we will need the exact mileage at the time of your loan application.
Will the title loan affect my credit?
The good news is that when you apply for a title loan, we do not require a credit check, so there is no ding on your credit history. As long as you uphold the terms of your loan by paying the required amount on time, taking out the loan itself will not hurt your credit. In fact, some borrowers report that their credit score actually increases because it shows that they are a responsible borrower and can repay what they borrow from a lender.
The downside is if you do not pay your loan as agreed. Your credit score could be affected if you fail to repay your loan or become late on your payments. We always encourage our borrowers to speak with us if they encounter a financial setback that precludes them from making payments on time. It is always easier to work through these situations on the front-end, rather than to ignore the problem by not paying what you are required to pay.
If you have encountered an unexpected financial situation, come on into A1 Cash today to speak with one of our representatives regarding your quick cash options. You will be pleasantly surprised at the ease and convenience of our loan process. The whole process takes as little as 15 minutes!
To apply for a loan, come and visit us at A-1 Cash on 1945 Northwest Broad Street in Murfreesboro, TN, or call A-1 Cash at (615) 895-6446. You also can apply online today for a payday loan at A1 Cash.