When Should Title Loans Be Used?

If you’ve ever gotten to the point where you’ve considered selling your car just to get out of a financial emergency, you know what anxiety feels like. Fortunately, you don’t have to resort to selling your wheels just to get out of a financial crisis. In fact, there are numerous options available to consumers from car title loans to personal loans that could prove very helpful in a pinch. Let’s take a closer look at title loans, for example!

What Are Title Loans?

Title loans are short-term loans, which are secured by your car’s title, not the car itself. Because of this, you don’t need credit in order to get cash and you can even keep access to your car even though it’s technically being used as collateral.

However, because these are short-term loans, the loan period is very brief. It’s always a good idea to speak to your local title loan lender first to find out more information on loan periods, interest rates, and other fees. Under certain situations, title loans could provide financial relief at a moment’s notice where other lending options may fall short.

When Should Title Loans Be Used?

As a rule of thumb, title loans should only be used for a financial emergency and when no other financial relief options are available. With that said, if all your money life hacks have failed to protect you from a financial crisis and you feel like there’s nowhere else to turn to for help, consider these financial options before putting up your car’s title for cash:

• Go to your bank: If you find yourself in a situation where you’re strapped for cash, your bank might be willing to help out with a personal loan. Of course, this greatly depends on where your credit stands.
• Ask friends or family: There’s no shame in asking family for help when the situation calls for it. Ideally, your family is your support system and as such, should be your source for help when times get tough.
• Pick up a side hustle: If you’re financial situation takes an ugly turn, picking up a side job might be your best option. Your side job doesn’t have to be a drag. You could earn extra money from doing things you enjoy. For example, if you’re a musician, why not start a cover band?
• Sell your junk: We all have clutter hiding away in closets, boxes and storage bins. Why not sell some of it? With apps like OfferUp and letgo, it’s easier than ever to trade your collectibles for cash.
• Dip into your savings: It should go without saying, but if you have anything in savings, you should use that before using any of the above options.

 

 

Title Loan Takeaways

Here’s the bottom line; if you’ve found yourself in an extremely uncomfortable financial situation, a title loan could offer some relief, but you may want to try some of the previously mentioned options first. If all else fails, you could always get cash fast with title loans regardless of your credit history or financial situation. Reach out to your local title loan lender today for more information.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.