Your credit score is a number that represents how likely you are, as an individual, to repay any of your debts, and by signing and finishing an auto title loan in Phoenix, you can increase your score with ease.
Each credit score is calculated by a formula that takes a number of factors into account such as: any current debt you have (car payments, rent/mortgage, credit cards to name a few common ones), your payment history, your length of credit history (how long you have had a car payment or credit card open), and the type of credit (loans or installment credit, revolving credit). Having high credit card balances (More than 40% of the full amount allowed by the card) or late payments on existing debt shows a lender you are a potential risk and could drastically narrow down your options for standard loans and even raise the interest rate you might be offered. On the other hand, a high credit score shows you are responsible and pay back your debts on time, Keep your balances low or even paid off, don’t have a lot of different forms of credit open all factors which will open up opportunities to bigger and better loans as well as easier approval for houses and even better car insurance rates.
So, kill two birds with one stone by signing up for an auto title loan in Phoenix to help your financial situation as well as potentially improve your credit score. Keep in mind, while a title loan can help your credit score, it certainly can hurt if you neglect your repayments as both missed payments and court judgments against you lower your score. That is why it is important to be selective as to who you choose to borrow from and where.
If you want to raise your credit score in other ways, you can always work at paying your bills on time, avoid closing or overspending on your existing credit card accounts, not opening any new accounts and by making efforts to pay down your debt. As a way to keep yourself safe, a good time to consider signing up for an auto title loan is when you are actively repaying your debt and maintaining a steady source of income. Even if a title loan is not actively reported to the credit bureau you can always ask for a credit reference letter to provide the credit bureaus and boost you score! Plus if you are worried about falling behind then this might just be the way to stay current and avoid a judgment against you!
So, enjoy the benefits of a high credit score and a new sum of cash by signing up for an auto title loan in Phoenix!