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How Will a Title Loan Affect My Credit?

A Quick Guide to Short-Term Loans and How to Improve Your Credit Score

improve your credit score 2021

Here at Midwest Title Loans in Kansas City, we know that sometimes, no matter how diligently they save their money, people fall on hard financial times. Many people who find themselves crunched for cash will turn to short-term loans, such as title loans, to help them get out of a bind quickly. But some may wonder -– what affects my credit?

Many wise consumers have thought about this as well as how to improve their credit score. As one of the top short-term lenders in Kansas City, our experts at Midwest Title Loans know a thing or two about credit scores, including what can affect them and how a title loan will (or, rather, will not) impact them.

What is a title loan?

First things first – a car title loan is a type of loan available to people who own a vehicle outright (meaning you aren’t paying a loan on it). You can use a title loan to borrow a substantial amount of money by using your car as collateral. Car title loans offer a number of advantages over traditional loans one of which is how easy it is to get a car title loan.

Title loans have some similarities to payday loans. You need not have credit requirements, as title loans are short-term loans. However, for a title loan, the security for such loans is your motorcycle or car. The lender decides how much you can borrow based on the value of your vehicle. The loan can be anything from $100 to $10,000 or more. The title of the car remains with the lender until you repay the loan in full.

What affects my credit?

Title loans do not affect your credit score at all. This is because title lenders do not run a credit check or hard inquiry when processing a title loan application. Additionally, a title loan does not help your credit score because lenders do not always report your payments to credit bureaus. Defaulting on a title loan usually results in the selling of the vehicle, and hence it is also not reported. So credit score is not affected, even if you default on a title loan. A default on a normal unsecured loan results in damage to your credit score.

How to improve credit score

If you have bad or no credit, one of the best ways to get much-needed cash is by opting for a title loan. These types of short-term lenders won’t check your credit history, and you can pay the loan back at your own pace. The vehicle title is transferred to the lender as collateral until you pay off the loan. It does not have an impact on the borrower’s credit score.

When you pay off a normal unsecured loan, your credit score improves, but not so with a car title loan. The reason for this is that you are using an asset, a vehicle in this case, and it does not affect your credit. If you want to improve your credit score after paying off a loan, you must choose traditional unsecured loans. If you cannot pay back a title loan, you can simply rollover the current loan into a new title loan.

Title loans in Kansas City

If you need a car title loan in Kansas City, the best place is Midwest Title Loans. We pride ourselves on being the best short-term lenders in Kansas City. Midwest Title Loans is an established and reputable lending company in Kansas City. Starting in 1997, we have many satisfied customers today because of our friendly and flexible approach. Check the reviews of our many satisfied customers. You can also fill out a loan application form online.

You may need cash to cover various household or other urgent expenses. You just need to drive in with your photo id and a vehicle, which must have a lien-free title. At Midwest Title Loans, you will have a hassle-free experience lasting for 30 minutes at the most while getting the loan. You will need to fill out an application form. We will then evaluate your vehicle. When the application is approved, you get the cash you need and you are free to use your car. Only the title remains with us. You get it back when you pay off the loan in full.

Benefits of title loans

When you need quick cash in Kansas City for anything – covering tuition fees, repairing household appliances, buying school supplies, paying unexpected medical bills, repairing other vehicles, renewing your car tags, covering any other emergency expenses – but are low on credit, come to Midwest Title Loans.

We promise you a same-day approval, provided your vehicle has a lien-free title. Car title loans are suitable for almost anyone. And the biggest advantage is that you can keep using the vehicle even after offering it as collateral on your loan. There are no restrictions on where and how to use the cash you get through a car title loan. You can visit us at one of our four convenient locations around Kansas City, or contact us any time at (816) 363-8600 for more information. Or, if you’re itching to get started now, feel free to fill out our online info sheet.


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330 W. 85th Street
Kansas City, MO 64114
Phone: (816) 363-8600
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Gladstone, MO 64118
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8212 Metcalf Ave.
Overland Park, KS 66204
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2500 State Ave.
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Phone: (913) 281-9997
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