| A lot of consumers could have a low credit score due | | | | information from the bureaus to assess if you are a |
| to errors on their credit report or other reasons, | | | | high-risk borrower. |
| including defaulting on loan or mortgage payments. If | | | | If you have a history of late payments, repossession, |
| you're having trouble qualifying for a loan because of | | | | charge-offs and other credit abuses, you will typically |
| bad ratings, don't despair. Even if you have a low | | | | have a low FICO score. Your report will also contain |
| score, you can qualify for car title loans or other | | | | information about bankruptcies, court judgments and |
| subprime lending products and get money for a large | | | | other public records, all of which can contribute to a |
| purchase or expense. | | | | low rating and affect whether a lender will approve a |
| What are Credit Reports? | | | | loan. |
| A credit report provides an evaluation of a person's | | | | Qualify for Car Title Loans Even with Low FICO |
| financial reliability. It is a summary of a person's history | | | | Scores |
| of repaying borrowed money and contains other | | | | Having a low score does not disqualify you from |
| relevant information that lenders can use to assess | | | | getting a loan. It just means that you have to be |
| your dependability. When a borrower applies for a loan, | | | | prepared to pay more in terms of interest, in order to |
| lenders will typically perform a credit check to | | | | help offset the risk incurred by the lender. Until you |
| determine whether that person is a good or a bad | | | | improve your rating, you will be considered a high risk |
| investment. | | | | investment and will not have access to the low |
| The earliest records were kept by store clerks who | | | | interest loans offered by traditional lending agencies. |
| would accept a marker (a promise to pay the cost | | | | However, you can qualify for subprime instruments, |
| plus interest) in exchange for merchandise. These | | | | such as car title loans, that require a clear pink slip |
| clerks would then keep detailed lists of all outstanding | | | | offered to the lender as collateral. The lender will |
| loans and ascertain when (or whether) they were paid | | | | typically pay you 25 to 50 percent of your car's value |
| off. | | | | in exchange for a loan. If you default on payments, |
| Over time, the information in these lists was put | | | | they will repossess and sell the vehicle to recover their |
| together and used to generate an overall report for | | | | money. |
| each individual. This is how the long history of credit | | | | If you repay car title loans on schedule, according to |
| reporting began in the U.S. Today, Equifax, Experian | | | | the terms of the loan agreement, it will demonstrate |
| and TransUnion are the three main reporting agencies. | | | | responsibility in managing your finances. Since the |
| These credit bureaus manage your financial history | | | | credit bureaus are more concerned with your current |
| and personal information. Banks and lenders report | | | | activities than your previous history, a positive payment |
| your history of repaying debts to these agencies. | | | | record will show up as a good mark on your record |
| Depending on whether you've made your payments in | | | | and can help improve your FICO score. |
| time or not, it will create a positive or negative mark on | | | | Once you have a good FICO score, you can borrow |
| your record. | | | | money at lower rates of interest and become |
| Many lenders use third-party scoring systems, such as | | | | financially solvent again. A car title loan can not only |
| Fair Isaac's FICO scoring model, to evaluate your | | | | get you out of a financial crunch, but also help you |
| creditworthiness as a borrower. When they need to | | | | boost your rating with lenders and banks. |
| check up on your score, they will purchase your | | | | |