When most people think about the side effects of poor credit, they immediately consider the difficulty of borrowing money. And while that is true, a low credit score can impact many aspects of your life—including housing, job opportunities, and financial stability.

At Tennessee Title Loans, Inc., we frequently meet individuals struggling with poor credit who find it challenging to secure loans. While we cannot repair credit scores, we can provide a bad credit title loan option to help bridge financial gaps.

Before discussing how title loans can help, let's explore how poor credit affects your life and what you can do to improve your financial situation.

How To Recover From The Effects Of Poor Credit

The Side Effects Of Poor Credit

Let's start with the impact of poor credit on your life. Any credit score below 579 is considered 'poor.' Although, getting above 579 won't magically deal with the side effects of poor credit. When you reach the 740 mark, your score has a lower impact on your life.

We will give you some tips for boosting your credit score shortly. We wanted to point this out so you know that even when you are considered to have a 'fair' credit score, you may still notice a few issues with gaining credit, employment, etc.

1. Difficulty Getting Approved for Credit

This is the side effect most people know about. Most lenders will only lend you cash if you have good credit. It makes sense. A poor credit score indicates that you need help with money. It suggests that you failed to make payments on time.

The lender will assume that because you have been unable to make payments on time to other companies, you will probably fail to pay them on time. They don't want to take the risk. It isn't just loans that you need to worry about, either.

You will need help to get anything credit-related. This means no credit cards, no cellphone contracts, and no pay monthly deals. On the off-chance, a traditional bank can lend you cash, and borrowing can be prohibitively expensive.

Solution: If you need quick cash but struggle with credit approval, a bad credit title loan may provide an alternative.

2. Renting a Home Becomes More Challenging

It isn't impossible to rent with poor credit, but it is much more challenging. Many landlords are now demanding a minimum credit score of 700. When finding a tenancy, anything below this and your work is cut out for you.

You'll be asked to pay a much higher security deposit if you see something with a low credit score. This gives protection to the landlord. It could be better for the tenant, though.

Solution: Work on improving your credit score, or consider alternative borrowing solutions, like title loans, to help cover rent-related expenses.

3. Higher Costs for Utilities & Services

It isn't impossible to get some utilities. It is just much harder. Those with poor credit scores have struggled to get good deals on electricity and water. Some utility providers have even asked for 'deposits' to be paid before the service gets switched on.

The only utility where you may see rejection after rejection is the internet. It's very frustrating because the internet is vital in our daily lives, especially since many businesses are now transitioning to a 'work from home' model.

Some ISPs deal with poor credit but often demand that you pay them several months upfront. If you have good credit, this can be easy. After all, you are already dealing with a difficult financial situation.

Solution: If a deposit is required, a bad credit title loan can help cover upfront utility costs.

4. Employment Challenges in Certain Fields

Some employers will carry out a credit check on potential employees. This typically happens in jobs where large amounts of cash are handled, or security is essential. So, if you have a poor credit score, you may struggle to gain employment in specific industries.

Solution: If you're struggling financially, consider budgeting strategies or consolidating debt to gradually improve your credit.

How to Improve Poor Credit Over Time

Improving a poor credit score can take time — several years. Negative marks, e.g., missed payments, stay on your credit report for seven years. They impact you less over time, but your score will be affected as long as they are there.

So, you are looking at a minimum of 7 years before you can get a 'great' score. You could see significant improvements within 6-12 months with some effort. These tips will help.

1. Regularly Check Your Credit Score

You need to get into the habit of regularly checking your credit score. While seeing your credit score improve can be motivational, it also allows you to check for any errors. It isn't uncommon for creditors to accidentally send the wrong information to the credit reporting agencies. This means payments may be marked as 'missed' even if paid. Sometimes, the address may need to be corrected. If you spot any errors, then get them fixed.

2. Make A Budget

You will be improving your credit score if you learn how to budget. This will not only help you improve your credit score in the short term, but it can lead to long-term financial health.

Make a note of all the bills that you need to pay each month. Estimate how much you will spend on food, clothing, etc. Finally, note down your income.

Your income needs to be greater than your outgoings. If it isn't, then you will never improve your credit score. You'll keep missing bills. This means you will need to look into ways to increase your income or trim back your expenses.

3. Reach Out To Your Creditors

Creditors want to be paid. However, they understand that people often run into financial issues. They would instead pay something than nothing.

Some people have had success giving their creditors a call. They have been able to negotiate a payment break (this allows other debts to be paid off quicker) or lower monthly payments. Some creditors will say no, but it's still worth asking.

4. Start Paying Down Your Debt

Try to pay off your debt as quickly as possible. If you have credit cards, pay more than the minimum payment. If you have loans, pay as much toward them each month as possible. The goal is to get rid of your debts quickly.

Not only will this impact your credit score, but it will also reduce the interest you pay. Here at Tennessee Title Loans, Inc., we recommend the 'snowball' method. You aim to pay off your smaller debts as quickly as possible.

So, make more than the minimum monthly payment for those small debts. You should have them paid off in a few months. Each time a small debt is paid off, you move on to the next smallest debt.

How a Bad Credit Title Loan Can Provide Short-Term Financial Help

If you need emergency cash but struggle with credit, a bad credit title loan can provide a fast solution.

Unlike traditional loans, title loans allow you to borrow money using your car title as collateral, even if you have bad credit.

With Tennessee Title Loans, Inc., you could qualify for up to $2,500 with just:

• A lien-free title to your vehicle
• Driver’s license or state-issued ID
• Your vehicle for inspection
• Proof of income

How to Apply for a Bad Credit Title Loan

We aim to make life as easy as possible for you. The process for inquiring about a bad credit title loan is just a few steps:

1. Fill out our short online inquiry form.
2. Wait for us to give you a call.
3. Meet us at the location of your choosing. Bring your vehicle.
4. We will inspect your vehicle and your documents. This can take as little as 30 minutes.
5. We decide whether we can lend to you.
6. If your title loan is approved, the cash will be available in your bank account either the same day or the following day.

Poor Credit? Need To Borrow Cash? Consider a Title Loan

The side effects of poor credit can make it difficult to borrow cash, rent, and even gain employment. However, you can improve your financial health by learning how to budget, negotiating with creditors, and paying down debt.

Unfortunately, this isn't helpful if you need emergency cash now. Thankfully, there are still options. A bad credit title loan from Tennessee Title Loans, Inc. may allow you to borrow up to $2,500 against the value of your vehicle. If approved, you could receive cash either today or tomorrow. 

Start your title loan application today and get the financial help you need!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.