If you are considering applying for an auto title loan for some funding in Ohio, then you may be curious as to how it might affect your credit.
It can be hard sometimes to understand why a seemingly insignificant three-digit number holds so much weight in the financial world. Your credit report is a tool that lenders use to determine the risk level that is involved in doing business with you. This is why credit can make it significantly more difficult for some people to be approved for funding.
Auto title loans are typically prime funding options for individuals with lower credit because of the high approval rates. The borrower’s car title is used as collateral, reducing the risk for the lender. This security allows for flexible eligibility requirements.
But how will an auto title loan affect your credit after you get one? This informational resource article will overview how credit is actually calculated and how an auto title loan could negatively or positively affect credit in Ohio.
How Your Credit Is Calculated
The FICO credit calculation was invented by the Fair Isaac Corporation as a financial tool used to measure the risk that may be posed to lenders by doing business with, lending to, or leasing to a specific individual.
There are five major factors that play into the calculation of your credit, and each one is given a certain percentage based on importance.
- Payment History (35%)
- Amount Owed (30%)
- Length of Credit History (15%)
- New Credit (10%)
- Type of Credit Used (10%)
Hopefully, this breakdown will give you a better idea of how each financial move you make affects your credit. With that being said, there are many ways in which an auto title loan can affect your credit.
How An Auto Title Loan Could Help Your Finances in Ohio?
Once you’ve been approved for an auto title loan, it will be registered as a new account on your credit report.
When you pay down your title loan on time according to the terms set up, your credit may improve over time.
As you continue to pay off the loan, monthly payments made on time may reflect positively on credit.
Why You Should Pick Title Loans for Funding in Ohio
Title loans serviced by LoanMart offer amazing benefits with their auto title loan services in Ohio. If you are interested in getting some emergency funding, look no further than title loans serviced by LoanMart1.
Here are just a few awesome benefits of working with title loans serviced by LoanMart:
- Easy Online Process1
- Competitive Interest Rates
- Affordable Monthly Payments1
- Flexible Terms
- Possible Approval with No Job1
- No In-Person Vehicle Inspection Necessary
- Funding in As Fast as One Business Day1!
What are you waiting for? Get started today by filling out the simple online inquiry form! You could even get your auto title loan money in just one business day1.