does a title loan repo affect your credit

Best answer


Very little effect on your credit

People also ask


  • How do title loans affect your credit?

  • Before we get into how exactly title loans affect your credit, you need to understand how title loans work. To receive a title loan, you put the title, or ownership, of your car up as collateral. If you fail to repay the loan by the due date, then you will lose your car.

  • What happens if you don鈥檛 repay your title loan?

  • If you fail to repay the loan by the due date, then you will lose your car. Some consider title loans a bad idea due to their high APRs, but like credit cards, if used responsibly, they can be a viable solution.

  • Are car title loans reported to credit bureaus?

  • However, car title loans are reported to credit bureaus in the case of vehicle repossession. This means that losing your car can not only be disastrous for your daily life, but can harm your credit score for years. Title loans are often an avenue for people with low credit to get money for emergencies.

  • Are title companies hard to repossess?

  • We know that a lot of title companies have received quite a reputation over the years for their 鈥榟ard鈥?approach to repossession, but this is not the case for most lenders. Most companies know what it can be like to miss a repayment on a loan.

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