Life has many unfortunate occasions that will call for quick cash. Situations like hospitalization, death, accidents, home and car repairs and these are situations where getting an auto title loan can assist in saving the day. If you need fast money but you have a low FICO score, a very great option is to get money through an auto title loan.
There are numerous reasons why people have a low FICO score, these reasons include: failure to make loan or mortgage payments or even credit card dues in time, bankruptcy, accidents also living beyond your means. Reporting errors and identity theft are also two common reasons for low FICO score.
These unfortunate situations occur not just due to your inability to make timely payments but because of human errors. You don’t get approved for conventional loans often because of bad credit rating.
If you are not sure about your rating you can request your credit report from the three main credit bureaus. Each bureau offers free annual credit reports that you can request to keep track of your credit score. Carefully go over the report given to you to check for human or other errors. Under the fair credit reporting Act FCRA, you are given the right to dispute incorrect information on your reports.
In order to do this, you have to write and send letters directly to the agency and the creditor notifying the incorrect information. It is worthy to know that it can take months or sometimes years to get the errors removed or rectified from a credit report. In order words, you should be prepared for a very difficult and frustrating process. While you are taking actions in fixing your errors, it is very important you look for other great options like an auto title loan that gives a reasonable interest rates and repaying the loan on schedule can help to improve your bad FICO score.
You are able to get an auto title loan quickly by using your vehicle title as a collateral to secure the loan. These loans are subprime loans because they are given to high risk borrowers but in a jiffy, you can get your cash handy in a matter of few hours. You get to keep your car and drive it while you pay up the loan so this using your car as a collateral does not affect your life activities in any way. All you just have to do is to provide your auto title as the collateral and plan your budget to pay up the loan as schedule. Since the credit bureaus give more priority to recent activity than to events of the past, timely repayment of the debt will demonstrate the ability to manage your financial responsibility.
If you draft out a plan to make payments diligently as agreed you will successfully establish a positive payment record that will boost your FICO score. However, your inability to pay up the loan as scheduled and agreed will not only affect you FICO score negatively but you will also stand a risk of loosing car as the lender can reposes your car and sell it to get his money back.