Unfortunately, emergencies happen where the need for cash is instant. Perhaps you have been hospitalized or involved in an accident, maybe there has been a death in the family. Your house or vehicle may need repairs or any other situation. In any of these cases, a title loan may just be what you are looking for, particularly if you also have a poor credit score. Additionally, these loans can actually help you to repair your credit rating.
Is There a Mistake on Your Credit Score?
Credit scores can be poor due to a variety of reasons. It can be because you made poor financial decisions, but it can also be due to circumstances beyond your control. However, it is also possible that you have been the victim of identity theft, or that there is simply an error on your file. Either way, however, this does not help you if you need money fast, because it can take a significant amount of time to rectify these situations.
If you aren’t sure about your credit rating, you should request a copy of your credit report. This will allow you to see exactly what is on there and help you to identify whether there are any mistakes. There are laws in place to allow you to dispute anything you spot on that report that is not correct. To do this, you must write to the credit agency, as well as to the organization that has put a negative marking against your name. In this letter, you must write why you believe the marking to be in error. Although this will take time, you will eventually recover your credit score to its rightful position.
Again, however, if you need money now, all these actions will not be of any benefit to you in the immediate here and now. However, by applying for title loans California lenders may just be able to help you restore some of your credit file as well.
How a Title Loan Can Restore Your Credit
It is very easy to apply for a title loan and your credit file is not of any importance, as your vehicle is the collateral on that loan. You do, however, have to have a vehicle that is free from liens, including car finance. When you take out such a loan, you will be able to keep and use your vehicle so long as you repay your debt. This means that there is no negative influence on your own lifestyle. However, your vehicle is in collateral, so if you don’t make the repayments, it will be repossessed.
One of the most important factors on your credit file is your ability to pay back any financial agreements right now. Hence, if you take out a title loan and pay it back on time, this will instantly boost your credit rating as well. Indeed, many people have taken out these types of loans with the sole purpose of rebuilding their credit. To do this, they place the loan principal in a savings account and simply pay it back, with interest, after one month. This shows that they have sufficient finances and that they stick to agreements.