Car Collateral Loans Hamilton Ontario and Credit Scores: How the Two Work Together

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Auto title loans, payday loans, and personal loans are often the only financial assistance people with poor credit scores can get. Of the three, car collateral loans Hamilton Ontario are your best bet. You can get lower interest rates and borrow a substantial amount if your car has enough value. You also keep your car even while the loan is active. This loan can also impact your credit score. 

How Do Title Loans and Credit Scores Work Together?

A person’s credit score is determined by a few factors. One’s payment history makes up 35% of their score while 30% is based on how they use their credit. Credit history takes up 15% of the rating while new credit and the types of credit lines used comprise the remaining 20%. A  refinance car loan usually affects the payment history. Paying on time will improve this category. It’s why you should always stick to your budget and meet the scheduled payments.

A title loan can ruin your credit. Your score will be pulled down if payments are late or if you default. Missing payments could also lead to repossession. You’ll lose your car and the repossession will be reported to credit bureaus. This will stay on your record for years and will be seen by prospective creditors.   

Lowest Possible Payment in the Industry

You don’t have to stress over money with Premier Loans Canada. We can offer you as much as $100,000 in loans. We’re known for our low-interest rates and affordable monthly payments. We also have customized payment plans that help ensure you can pay back the loan easily. Sign up at our website or call our toll-free number at 1-855-965-1650.

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