Most of us have found ourselves in the situation of needing cash and needing to get it as quickly as possible. Unexpected home repairs, healthcare expenses, and other monetary problems can crop up out of nowhere, and when they do it’s always best to have a financial resource at the ready just in case. If you’re like most Americans, you’re living paycheck-to-paycheck and likely don’t have funds set aside for emergency purposes. If you find yourself needing cash immediately, then this may be a good time to consider getting a car title loan.
What is a Car Title Loan?
First and foremost, it’s an extremely quick and easy way to get cash. As the name implies, a car title loan is a short-term loan secured to the title of your vehicle. Since the loan is done on the title of the car and not you as an individual, there’s no credit check required and no waiting period. All that’s needed is a clean and clear vehicle title and a photo ID for verification purposes. The amount of the loan that you can get is dependent on the value of the vehicle, but generally maxes out at $5,000.
When Should I Consider Getting a Car Title Loan?
Most people get car title loans when they need cash that day or know that they’ll require cash in the immediate future. Unlike traditional banks, car title loans are advantageous in that they can cover any variety of financial need on a short turnaround. The following are some common problems that car title loans can help you address.
Unexpected repairs. Unfortunately, if you live in a house long enough something is going to break, and it’s never when it’s convenient for you or your bank account. That’s why car title loans are great for coming up with the funds to fix your hot water heater or damaged roof from a recent storm. They’re also great for replacing or fixing large home appliances that are used on a daily basis, such as refrigerators or water heaters.
Medical bills. Nobody ever plans for a medical expense, and if you don’t have health insurance they can be quite costly. Car title loans are a great resource for taking care of medical bills or for getting the cash you need to get your prescriptions.
Large bills and expenses. Every so often you’re going to get hit with a large bill that you can’t put off. A good example of that would be renewing your car tags, paying a tax bill so it doesn’t accrue interest, or paying for your child’s back-to-school supplies and tuition. Car title loans are great for dealing with those large ticket items that seem to come around once or twice per year that require your immediate attention.
Second vehicle repair. Many families have multiple cars, but sometimes one of them breaks and you need quick cash in order to get the repairs done. Let’s say that your second vehicle suddenly needs a new alternator or the transmission drops. That’s a perfect reason to get a car title loan.
Anything else you need. The beauty of a car title loan is that you don’t have to use the money for a specific purpose other than what you need it for. It offers flexibility and immediacy. Even though many clients use it for emergency purposes or bills they didn’t plan for, plenty of other people use it for groceries or some other type of everyday expense.
What is the Process of Getting a Car Title Loan?
Getting a car title loan is a simple process and usually takes half an hour or less. The first step is to bring in your car with a valid form of ID to the title loan location of your choice. You will then need to fill out some basic application paperwork while your vehicle is evaluated by the staff. Based on the car’s value and your budget, the title loan establishment will set your loan amount with a detailed repayment plan. You receive your cash that day and drive off in the car you arrived in.
As we’ve established, car title loans are a fantastic way to take care of unforeseen problems or financial concerns that require immediate cash. In order to get more information regarding lending terms and the loan amount you qualify for specific to your vehicle, it’s best to visit the title loan company’s location in person.