The Car Title Loan
In a time where unemployment rates have spent years around of above 8% there are a lot of good people who are in need of fast cash in emergencies. As a responsible consumer you try to plan for any eventuality but sometimes stuff just happens and you suddenly find yourself using your rent money to fix the family car or paying your son’s dentist bill after he wakes up in the middle of the night with a toothache. While no one would choose to spend rent money on anything but rent, things do happen. One of the best parts of a title loan is it improves your credit when you get set up with a payment plan and make timely payments.
How it Works
Most people who are unemployed or underemployed usually do not have stellar credit, or even credit good enough to secure a traditional loan so they are left looking for a loan that doesn’t come from a loan shark. You don’t need a checking account and in some cases you don’t have to have a job. Your lender will want to know you have some way to make the payments they set up for you. You will need proof of your residence like an electric bill, and references. More may be required depending on how much you are looking to borrow. It takes about 5 minutes to fill out an application and about as long for pre-approval. Processing and underwriting take place the same day and you can have your cash the same day. Some title loans have balloon payments and if you cannot make the payment let them know and for a nominal fee you can roll the loan over for another time period. The application is free and the amount you can get is based on the value of your car. When the process if finished you walk out with a check in hand or it can be wired to your checking account. You may still qualify for a title loan even if your car isn’t paid off. If you’ve only got a few months of payments left the loan company will usually pay off your car (which helps your credit) and gives you the extra cash. Some title loan companies have mobile loan professionals who can come to you to do the paperwork and a final inspection on your car so you don’t have to run around looking for a lender near you. It’s a win win situation.
Sometimes you Need a Little More
For some emergencies a cash advance of a couple hundred dollars will alleviate the problem. For those really big problems that can’t be solved by tossing a few hundred dollars its way, there are title loans. You can get a lot more cash, just as quickly, and you’ll be set up with a payment plan that makes sense. As long as your car has a current market value you should be good to go and it costs you nothing to find out just how much you are able to borrow. Suddenly that looming mortgage or rent payment that you weren’t going to be able to pay, is taken care of. Now you can take your kids to the dentist or to the doctor for check-ups. You don’t have to spend it all. Put the extra cash in the bank for those emergencies you just can’t predict or plan for. Imagine the peace of mind you’ll have just knowing that if your family experiences a financial emergency you won’t be in trouble after all.
Help your Credit Score
Obtaining a title loan, getting set up on a payment plan, then carrying through and making your payments on time and paying off the loan all do wonders for your credit score. You may come to the lender with bad credit, broke, and in trouble and end up having some extra cash and a better credit score after all. Who knows, next time you apply for that credit card you won’t get turned down. Next time you go to buy a new car you’ll drive away with new keys in your hands, all because you got a title loan.
Jenny Sampson is a professional blogger that enjoys providing consumers with personal finance advice. She writes for TitleMax.biz, a leading Title Loan company offering loans for people with bad credit.