If you have ever had a credit score that wasn’t worth bragging about, you know the limitation it puts on your life – buying or renting a house and taking out loans becomes a big hassle.
Although the basic concept makes a lot of sense – that you would be able to prove that you have a good history of making payments in order to protect those lending money – there are many flaws within the system.
The Trouble with Credit Ratings
Often times, people do not have a choice but to forgo one of their important payments. Especially when the recession hit in the 2000s, many hard-working people were hit with job loss, bills they couldn’t pay, and ultimately bad credit. Even though many were responsible people by nature, they had no means to carry out payments. Should these people be punished because they were hit with bad luck?
An added frustration is the fact that once you have bad credit, it is incredibly difficult to improve your score. It is much harder to shine up a credit score than it is to mar it. Some people spend years trying to improve the bad mark behind their good name.
In the meantime, they have years upon years of suffering through the consequences. For instance, it is extremely difficult to get a traditional loan with bad credit. Banks and other traditional lenders will only give out money to borrowers if they can prove that they have a good credit rating. For those with a bad rating, they do not even stand a chance. The irony being that it is usually people with bad credit who face the hardest times and need the loan the most.
Car Title Loans are Bad Credit Loans
Fortunately, there are a few options out there that allow people with bad credit to get hefty loans: car title loans, payday loans, and pawnshops. Of these three, car title loans are the best option.
You use your vehicle as collateral for a loan rather than credit. In this way, you get:
A secured bad credit loan
Fast cash in 24 hours
Flexible repayment periods
Low and manageable interest
To keep driving your car
In contrast, payday loans are unsecured small loans, have rigid repayment periods, and high interest rates; pawnshops are secured small loans that require you to give up an item, and you only get it back once you repay the loan.
The other beneficial perk to car title loans is that you can actually use it as a technique to quickly build up your credit score if it has taken a nose dive. Each time you make a monthly payment on time, we report that to the major credit bureau to help improve your score! Apply for title loans online today!