Will defaulting on a title loan impact my credit?
It can. Short-term lenders usually don’t report your payments to the major credit bureaus. But if you default and have your car repossessed, your lender — or the collection agency your debt is sold to — may report it.
Defaulting on a title loan can stay on your record for up to 15 years. This impacts your ability to get a loan, as many traditional lenders shy away from a borrower who’s defaulted. Not only that, your credit score will likely take a huge hit, keeping you from qualifying for the best rates and terms for loans and credit cards in the future.