 TITLE: Are Title Loans Worth the Cost? CONTENT: Does a Title Loan Affect My Credit Scores?\n------------------------------------------\nIn most cases, a title loan won't have any impact on your credit scores. That can be good and bad. For starters, most title lenders don't run a credit check when you apply. That check, known as a hard inquiry, typically knocks five points or less off your credit score.\nOn the flip side, title lenders don't report your payments to the credit bureaus, which means a title loan won't help your credit scores either. If you're applying for a title loan, you've probably had a difficult time getting credit from more traditional sources. In that case, you want any credit or loans you do get to count toward your credit so you can begin improving your credit scores and eventually qualify for more traditional (and less expensive) credit.\nIf you default on your title loan, the lender is required to comply with the Fair Debt Collection Practices Act. Even so, it will usually repossess the vehicle and sell it, so there's no need to sell the debt to a collection agency or report the delinquency. END