Any American who wishes to get a loan needs to learn a lot about one thing: credit score. It is a complex measurement of their ability to enter into debt and pay it fully and on time.
Knowing your credit score and obtaining your credit report is easy. Three bureaus — Experian, TransUnion, and Equifax — can give you a free copy annually. The problem is that not everyone possesses an ideal score, which is 601 and above.
Based on the 2015 VantageScore data of Experian, almost 33 percent of Americans have bad scores. Interestingly, many still don’t have any credit score, which is just as disadvantageous as having a poor mark.
The Big Issue with Bad Credit
These scores are problematic for a variety of reasons. In a NerdWallet and Harris Poll survey, they can affect our ability to get an apartment, how much you pay for your insurance and your choices for cell phone services. In fact, it can hurt your chances in obtaining a job, although employers themselves cannot perform a search unless you consent to it.
Most of all, a bad credit score can have a huge impact on your loan application.
Most lenders set a high standard when it comes to credit scores. Big ones can even demand 720 and above. The idea is simple: good scores mean lower credit risk. You are less likely to default on your payment. You are also more probable to pay your debt on time. Simply put, you are a model borrower.
With a bad credit score, you may end up paying high-interest rates and settle your loan sooner than you expect. The amount you can borrow may be lower than what you desire.
A bad score, however, doesn’t mean you cannot apply for a loan at all. And if you consider other options such as a title loan in Provo, you won’t even have to think about bad credit.
How Title Loans Can Help
Title loans allow you to obtain fast cash based on the value of your vehicle, which can range from motorcycles to cars and even snowmobiles. You also don’t need to turn over your vehicle to the lender, and you may get the loan even if you’ve lost your title. With the ease, speed, and efficiency, you can also use this type of debt to rebuild your credit history and improve your score.
In the end, the goal is to increase your score. This way, you can maximize your loan options and have access to better things such as lower insurance premiums and the apartment of your dreams.