Credit is not available to everyone. Before any creditor will make credit available to you, certain standards must be met. These standards are typically not a requirement when
obtaining loans like through the cash advance organizations. There are also many Title Pawn Company’s that will not even give you cash if your credit is really bad.
The first being the ability to pay
At the top of most creditors list is deciding whether they want to extend credit is your ability to repay the debt. Creditors look at your source of income, which for most people are the regular wages earned on the job. Your income may also be derived, wholly or in part, from investments, alimony, or public welfare assistance. A lender must take these sources into account, as well as the stability of your earnings and, at your request, your credit record.
The second being collateral
In addition to earning power, creditors often also want collateral before granting credit. Collateral is something that a creditor has the legal right to take from you if you fail to repay the loan. When you buy a home, the house itself is collateral for the mortgage. Similarly, when you finance a car or do a title pawn on a car, the car is the collateral. Other assets frequently used as collateral are stocks, bonds, savings accounts, and insurance policies.
Lenders usually demand to see credit references, especially for large amounts of money. These references are others who have extended credit to you in the past, such as a bank department store, utility, or any creditor that can report on your credit performance. You can begin accumulating good credit references by applying for a retail or oil company that can report on your performance, and paying your payments on time every month. A favorable rating will be in your credit file the next time you need to borrow, and will be a plus if you apply for a home mortgage, auto loan, or other major loan in the future.
It is important to note that some title loan and title pawn companies especially within the Atlanta area do require a credit report and or some sort of collateral for lending money. Many require extensive auto evaluations, maximum mileage, as well as full coverage insurance, and often times full vehicle appraisals.