Due to numerous reasons, people end up with poor credit scores. Usually it maybe due to n error or at some point defaulting on a loan but whatever the reason maybe, most banks and financial institutions do not give loans to people with poor credits cores. But if you are one of those, you can still avail Phoenix vehicle title loan which gets you quick cash so don’t despair if you have a poor credits core. Most of the subprime lending options are always there.
Usually individuals that have credit abuse, late payments and charge-offs will tend to have low credit score and if your credit report show bankruptcies or other court cases, your FICO score will be low and that directly affects the approval of any loan. However, you are still eligible for Phoenix vehicle title loans as you are taking a secure loan wherein you have to keep collateral to take the money. In Phoenix vehicle title loans, your car is used as collateral though you get to drive it.
The only difference that poor FICO rating makes is paying high interest as your credibility as a borrower is low. High interest is charged to offset the lender’s risk and this stays unless you are able to improve your credit score. Till your credit score goes over the 750 mark, you will always be considered a high risk investment and most traditional financial lending institutions will not give you loans.
But most of the time credit score lower than 750 allows you to avail vehicle title loan and other subprime instruments but requires a clear title of the car as a collateral. Generally, the Phoenix vehicle title loan lenders give you about 25% to 50% of your vehicle’s value that is based on the condition and year of manufacture of the car. In case you take the loan but default on the payments, your car is repossessed and sold by the Phoenix vehicle title loan lender to ensure that they do not lose out on the payment.
When you repay the installments or the interest on time as per the contact, it shows your responsible behavior towards financial managements. With timely payments not only will you be able to improve your FICO credit score but become more trustworthy when it comes to traditional lenders. With Phoenix vehicle title loan, you can tide over the current crisis and with repayments on time you can enhance your credit score.