If there is one sure thing in your financial life, it is the fact that unexpected expenses will come up. Even with a seemingly perfect budget, you will find situations where you don’t have enough money to cover unexpected expenses. Truth be told, most American households don’t even have enough to save for a rainy day.
This is one reason why many people are looking for new and easily accessible sources of credit including title loans. For most household owners, title loans are not even on their priority list when seeking a quick option to sort out a financial emergency.
Lack of Preparedness for Financial Emergencies
According to a report by the Federal Reserve Board’s Division of Consumer and Community Affairs which was aired on CNBC, 66 million Americans have no emergency savings. This comes in the backdrop of an increasing cost of living. The same report shows that 47% of Americans cannot take care of an emergency expense of $400 and they would be forced to cover it by borrowing or selling an asset.
A similar report from Pew Charitable Trusts published on Forbes shows that 1 in 3 American families has no savings at all. 37% of the surveyed households have only enough savings to pay for a $500 to $1,000 emergency. This situation is understandable because a report by Bankrate.com shows that expenses in the U.S are growing faster than savings, especially during home buying and kids raining years.
Title Loans to the Rescue
Life is full of uncertainties and while everyone would like to have an emergency fund, it is practically impossible. It is true that incomes have been increasing but so has been the level of expenses. As a household owner, you have to be aware of the options available in case you have an emergency.
Your bank or credit union will not come to your aid when your car breaks down. If you have bad credit and you need quick cash, traditional lenders will have no solution for you. This is where a title loan comes in handy. If you are looking for a quick cash solution for an emergency, it is time to learn more about car title loans.
Below are some key points to give you more insight on these loans and how a car title loan company can help you:
Overview of Car Title Loans
As the name implies, a car title loan is secured loan where you borrow quick cash against your vehicle. The vehicle is the collateral which means if you default, the lender has the right to claim the vehicle as payment for the amounts owed.
Your car should have alien-free car title which must be in your name. More importantly, you must have a source of income to prove you will be able to repay the borrowed amount. Once you have provided the documentation required, a loan professional will evaluate the value of your car to determine whether you qualify for the indicated amount. It is obvious that a car in good condition allows you to borrow more. However, there are many other factors that determine the value of your car including mileage and car model to mention a few.
No Need for Good Credit
When you have a financial emergency, the last thing on your mind is how to deal with your poor credit rating. However, this is something your bank will bring up when you approach them for credit. Luckily, car title loans are not based on your credit rating. In fact, there are no credit checks because you have already provided proof of income and there is collateral for your loan.
One reason banks check your credit score is to determine the risk of default. With a poor credit rating, you are a high-risk borrower and your bank will turn you away. With a title loan, your credit score doesn’t come up at all. This means you can still access money even with a poor credit rating.
Quick Loan Processing
The beauty of going for a title loan during an emergency is the speed of the entire process. You can apply online from the comfort of your home or office. You will receive an email approval and all you need to do is take your car for assessment. It is now easier to calculate how much you can borrow using online calculators.
Flexibility
Are you looking for quick cash to repair your deck or maybe you need to clear a pending hospital bill for a relative? Whatever unexpected expense has come up, you can use a car title loan to sort it out. There are no limits to the things you can do with your loan.
Higher Loan Amounts
If you are looking to buy a loan from your bank, there are myriad hurdles to overcome. Even after overcoming them all, you will still not get the amount you want to take care of your emergency. However, a title loan offers a more convenient option in that you can borrow a higher amount based on the fact that the loan is secured. There is less risk and lenders are willing to lend around $2,500 to $50,000 and even more depending on your needs.
Convenience
The loans are not only easy and fast to access but you also get to keep your car. This means your life will not be hampered in any way and once you have repaid the loan, you will get your car title back.
Title Loan Companies Differ
When looking for a title loan, ensure you go for a reputable loan company. The lender must have experience offering title loans and they should have a good track record. Ask for referrals and recommendations from friends and family. More importantly, check with the local Better Business Bureau (BBB) to confirm that the company has no complaints against it. A reliable lender should also have a professional online platform where you can apply for a loan and learn more about their services.
Title loans come in handy when you are stuck financially. A good title loan company will have a straightforward process to guarantee you access your money quickly and without much hassle. The loans are tailored to your financial capability and needs, which makes repayment easy. Whatever you do, don’t forget to talk to your title loan company about your needs. More importantly, do a background check on the companies to identify the best title loan services.
