Do you have bad or no credit? Guess what purchasing a car will help you build up your credit score. Sometimes life can be difficult and we get ourselves in financial trouble and so we need to take the proper steps to rebuild. A credit score can be rebuilt through auto loans and having a car title.
A person with a low credit score will have difficulty in securing a traditional loan or credit card. On the other hand, a car loan can be accessed more easily because the loan is secured by the car through a higher interest rate. It’s not the perfect plan and you might have to pay more than if you had good credit but in the long run it will help.
You will need to avoid the temptation of the grace period attached to the repayment. It is best to make the payment on time every month. The grace period allows you to pay some days later date than the payment date without receiving a late charge. You may be free from late charge payment but in this case of trying to build a credit score rating, using the grace period may affect your rating in the long run. Paying on time will help increase your credit score.
Car Title Loans
Car title loans can also help rebuild credit score, but many people are not aware of this. There is a higher chance of having a car title loan approved than having a traditional bank loan approved even when an individual’s credit score is poor.
Obtaining this type of loan and paying back will help a person eligible for other loans that are very crucial. A poor credit score can affect the ability to purchase a home, renting an apartment and even getting a job. Companies consider a person with a weak rating as unreliable and pose a risk to their establishment. The way to go in this situation is to rebuild your poor credit score by obtaining a car title loan making sure it is paid off on time. The history of your payment is critical, and you need to ensure that there is no delay whatsoever.
This type of loan is approved within a few hours, and you get to keep your car. The loan is secured by this vehicle. If you default on the payment, the vehicle will be seized by the other party