How Credit Scores Work

 
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How Credit Scores Work

If you are deciding on a title loan, it may be because you have a poor credit score. Maybe you have great credit but still need a quick and easy way to get money now.

How Credit Scores Work

Overall, you may not know what a credit score entails or how its broken up. It’s not something we learn, and it’s not really anything we think about asking.

Payment History – 35%

Your payment history equals 35% of your credit score. This means the 35% of your credit score is impacted by how often you miss a payment and if you’ve defaulted on loans before. If you learned anything about payments on credit cards or loans from school or family, they will usually say try not to miss a payment ever, even if you pay the bare minimum.

Amounts Owed – 30%

Another 30% of your credit score is how much you owe on your loans or credit cards. If you have credit cards that are near max or are maxed out, that can reflect negatively on your credit score because banks see it as a negative aspect with money responsibility.

Length of Credit – 15%

Your credit score is also 15% of the length of time. This reflects how new borrowing can be for you. If you have racked up a lot of credit in a short amount of time, this could negatively impact your credit score.

New Credit – 10%

Think about how many loans or cards you have recently applied for. Running a credit check will impact your credit score the more you try to get approved for a loan.

Type of Credit – 10%

Did you know your credit could be affected by the types of loans you have? If you have a healthy mix of credit cards, home loans, car loans, and other types of finances, it could be better for your credit than having 5 credit cards and no car loan. How your debt is split will affect your credit by 10%.

How a Loan Can Damage Your Credit

Like any other loan or credit card you may take out in your life, when you don’t make payments or default on a loan, your credit score will drop. This will make your credit report look less impressive to other lenders. That is why it’s important to stay on top of your payments and do not default on your title loan.

Good Credit for a Title Loan?

Title loans are one of the only personal loans that those with bad credit may qualify for. LoanMart uses the value of your vehicle and your ability to pay the loan as your approval1.

Many customers want to improve their credit score but don’t have the opportunities to since creditors reject them on any other loan or credit card. LoanMart wants to give those people an opportunity by giving them a chance to provide a better future for their families.

Title Loan Requirements at LoanMart

You might be wondering what the requirements are for a title loan if you don’t need a good credit score. It’s actually rather simple and easy to qualify for a title loan. All you need is a clear-and-free title on a vehicle and an ability to pay the loan payment every month1. This can be a proof of a job or other monetary income you may receive.

Those are the first two items that can get you approved for a title loan. The other documents you may need to get approved are:

·         Proof of auto insurance and registration

·         Personal Identification

·         Pictures of the vehicle

·         Vin, license plate, and odometer

·         4 personal references

·         Proof of residency (last 30 days)

Apply for a Title Loan with LoanMart

If you’re ready to apply for a title loan with LoanMart, we offer you three different ways to apply. The first is the ability to apply online with your phone, tablet, or computer. You just have to fill out our quick application with the basic information regarding yourself and your vehicle. Another way to apply is simply over the phone on our toll-free number where a representative can guide you. If you live nearby LoanMart, you can apply at our location. You can be approved for a title loan in less than an hour with your free quote3!

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