From time to time, we all fall short in cash, and sometimes when we are low on cash, big and often costly problems arise. Sudden trips to the emergency room or last minute repairs needed on the home can cost more than the amount we currently have riding in the bank account leaving us wondering how we are going to pay for the unexpected expenses.
While friends and family members are often a good resource for money troubles, they aren’t always able to lend you the amount of money you need. Fortunately, there are a few other ways that you can obtain the money you need when you need it.
Car title loans from companies allows you to obtain a loan based on your ownership of your vehicle. Usually to qualify for one of these loans, you will need to own a vehicle worth more than $4,000 and proof of ownership. Because car title loans are given based on the value of your car, having great credit is not a deciding factor. Applicants can have average or poor credit, and as long as they own their car, can still be approved for a loan.
Car title loans are generally a better choice than payday loans as they allow you to borrow higher amounts, and give you a longer period in which to pay back your loan, usually 36 months. The interest rates associated with these loans are often lower than payday loans as well.
Although car title loan interest rates are lower than payday loan interest rates, users should be aware that the interest rates are still incredibly high. If you are unable to pay back the loan within a certain period of time, you may find yourself with outrageously high payments or may lose your vehicle. If you have an alternative way to fund unexpected expenses, such as through a family or friend loan, choose these options instead as you will avoid high interest fees.
If you have no other financing options to help you pay for sudden repairs or medical bills, don’t be afraid to use a car title loan. These loans can help you get the money you need when you need it, and are a much better option than just living without.