Auto title loans have helped provide thousands of people with the money they need to manage an emergency or an unexpected expense. This secured loan has helped even those with poor credit scores or who are unemployed. But with collateral being used, borrowers wonder how a bad credit score auto loan Barrie Ontario will affect their credit rating.
Do Car Equity Loans Hinder or Help?
One concern many borrowers have is the impact of a title loan on their credit rating. Does it help improve it or pull it down? It can actually do both, although its effect isn’t as far-reaching as a bank loan. On the positive side, many online title loan specialists don’t run credit checks because there’s collateral. This is a good thing if you have a low credit score. Every hard inquiry or request for your credit report often takes off five points from your current score.
However, auto finance lending companies also don’t report your loan payments to the credit bureaus. Your credit report won’t show that you’ve been paying on time. Consequently, your score will remain the same. However, your car getting repossessed will be reported. It will remain on your file for years and can affect future loan applications.
The Best in the Industry
Credit checks are a thing of the past with Premier Loans Canada. You can borrow as much as $45,000 from this trusted lender with no credit or employment checks. Our company also offers low-interest rates and affordable monthly payments. We also have flexible payment plans. Thanks to our fast approval process, borrowers can receive the cash they need within an hour. Log on to our website to apply or call our toll-free number at 1-855-965-1650.
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