Does A Vehicle Title Loan Go On My Credit Report?
There comes a time in life when you just need a helpful loan. When you are in need of a lot of cash very quickly, a vehicle title loan from New Mexico Title Loans, Inc. may be just what you need. But many people are unsure exactly how vehicle title loans work and how they impact them.
Most importantly, people ask “do they go on your credit report?” After all, keeping a healthy credit score is very important for long-term financials. That being the case, you can use this guide to get into vehicle title loans in New Mexico, as well as how they interact with your credit report and score. You will learn more about why a title loan does not go on your credit report.
Learn More About A Vehicle Title Loan
Secured Loans Vs. Unsecured Loans
When it comes to loans, there are two major types you’ve probably heard of. There are "secured" loans and "unsecured" loans. Put simply, a secured loan has the individual put up an asset (your car’s lien-free title for our vehicle title loan) as collateral in exchange for the loan. But unsecured loans do not require you to put up collateral. Instead, you are lent money based on either your income or credit history.
Because an unsecured loan has no actual insurance that you will pay back your debt, aside from your credit history, such loans likely have an impact on your credit report. There will possibly be credit checks to help the lender determine how much you could get. Paying it off consistently and on time helps your credit greatly.
But when it comes to our vehicle title loans, these aren't unsecured loans. Because you put up an asset, that being your lien-free title, you are actually using that as a promise to repay your loan. In this situation, your credit score does not play a big part in our process. What this means is that we will not report to any credit agencies and your loan doesn’t go on your credit report.
How Is A Vehicle Title Loan Valued?
Many loans determine how much money you qualify for by your credit report. But as we just established, vehicle title loans do not rely heavily on your credit score. So, how exactly do we determine how much money you can get out of a loan? Well, the amount of money you can get is affected by two different factors.
The first is how your vehicle is valued by a nationally recognized pricing guide. These are official guides used to determine the overall value of a vehicle based on its model and age. Second up is the condition of your vehicle. Naturally, if your vehicle is run down and beat up, it isn't going to be worth as much as if it was in good shape.
As for how the condition of your vehicle is determined, that is handled by a physical inspection carried out by New Mexico Title Loans, Inc. when you come in or when we meet you at another location. This will occur after you have applied for the loan and a meeting has been set up with a representative. It's usually quick and only takes about thirty minutes.
Needless to say, you are going to get more money in your loan if you possess a newer vehicle that is in good shape. In the case of a vehicle title loan from us, you could get anywhere from $300 to $10,000. But do not worry, we aren’t doing an extensive vehicle inspection. This is just an inspection to determine if your vehicle has any major damage.
The Loan Process At New Mexico Title Loans, Inc.
If you have determined that a vehicle title loan is right for you, the process for applying with us is very simple. First, keep in mind that you will require certain documentation. The good thing is we don’t require a lot of items from you. We only require three items for you to show us. The things you need are the following:
- Driver’s license or a state-issued photo ID.
- Lien-free title to your vehicle in your name.
- Your vehicle for a quick inspection.
A "lien-free" title means you own your vehicle outright, with no active loans or judgments against it. If you do not actually own your vehicle, then you can't use it as collateral for a secured loan. But if own your car and have the title, you can easily fill out the online form on our website to begin the process for a vehicle title loan.
Once your form is processed, a representative from the nearest New Mexico vehicle title loan location will contact you as soon as possible. They will discuss a proper meeting place and time with you since you can either visit them in a store or choose a place where they can meet you. Then they will conduct an inspection of your vehicle and your documents.
Following that, the representative will assess your eligibility for the loan. If you qualify, you will be able to get your money either the day of the approval or the next business day. Keep in mind that loans should only be used for emergency expenses. If you do have such an emergency to worry about, a vehicle title loan is a good option to cover your needs.
Get Your Vehicle Title Loan Today
Have you learned just how your vehicle title loan will impact your credit? Well, now you are ready to proceed with the process. The next time you are dealing with an emergency, you don’t have to worry about this loan hurting your credit score and appearing on a credit report. So, once you are ready, fill out the online form on our website to get started.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.