People working on their credit building always find a way to get some loans through which they can build their credit fast. So, when they know about Florida title loans, then they want to see whether they can build up their credit through it or not. If you are looking for a one-word answer, then it’s “NO.” You won’t be able to build your credit score through this loan facility. However, if you want to know all the details like why this auto loan doesn’t impact your credit score, continue reading and exploring more.
Why Doesn’t Title Loan Reflect on Your Credit Profile?
A lender doesn’t run any credit check when you apply for a Florida title loan. He gets title as collateral through which he can reduce his credit risks quickly. He is more concerned about a clear-title and thereby shows less concern in your credit score.
Why Don’t Lenders Perform a Credit Check?
With an attempt to offer some legitimate payday loan alternative, lending agents think of considering the title of the car as the security for the loan. The payday loan problem is that its term is very short as you have to pay it back after two weeks. Borrowers were looking for something that can offer them more flexibility than a payday loan. So, the features of a title loan are exactly like with that of a payday but with better terms and options.
In both types of loans, a credit check is not performed. The purpose here is to attract all kinds of customers with and without credit. Many people have issues with their credit. At one point, some young people have no credit as they are new to the lending world. At another point, customers can’t pay off loans due to some financial crisis, and that’s how their credit profile becomes unattractive.
When it comes to the time limit, you can either opt for a 30-day term or an installment loan option featured with three to six months.
What Makes Florida Title Loans as of the Best Payday Alternative?
First of all, a borrower gets more time to pay off the loan. He doesn’t feel stressed all the time about arranging funds as he gets enough time.
The second thing that makes title loans a better payday loan alternative is that an unemployed person can choose this option. Payday loans are solely based on your paycheck; having no jobs means getting no loan. However, lenders of title loans in Florida go one step ahead from payday lenders by facilitating both employed and unemployed persons. So, if you rely on pension benefits or stock returns and have a car, you are still eligible for this auto loan.
No-Impact on Credit Score
In simple words, your car title loans in Florida have no impact on your credit score because the lender doesn’t run a credit check. You can get this loan with bad credit and even with no credit. Besides, he doesn’t report you to the credit bureau if you don’t pay off the loan. Instead, he capitalizes on collateral by selling it in the market and recovering all his expenses and loans. This loan can help you build credit, but you can try five other ways.
