You may be asking yourself, what option do you have? The answer is very simple, your best option to get the emergency cash you need is car title loans. Subprime borrowers who have bad or low credit ratings can get a secured loan by making use of their car as collateral. Anyone who has a vehicle can qualify for a car title loan. Even if the borrower has bad or no credit, approval typically takes few hours.
If you need quick cash, you’ve different options for borrowing money. Some of them include:
- Cash Advances You Can Get From Credit Cards
These feature exorbitant interest rates and fees that are higher than balance transfers or purchases. Cash advances also have no grace period as they start accruing interest quickly.
- Loans from Credit Unions
Credit unions are a financial institution owned and controlled by its members. They offer credit at reasonable rates and loans from these institutions can offer lower rates than banks, but membership is limited.
- Unsecured Personal Loans
Unsecured personal loans do not require you to put up your home or other property as collateral. They can provide cash in volumes that range from $1500-100,000, and normally offer lower interest rates than credit cards, but have more strict approval requirements.
- Payday Advances or Payday loans
A payday loan is a short-term loan that is intended to cover a borrower’s expenditures until their next payday. These are approved irrespective of a bad credit record, but require that you have a steady job and they must be repaid within 14-30 days.
- Car Equity Loans
Auto title loan lenders normally have the lowest approval requests, with just the car title that isused as collateral. They also have the most flexible term for all the options available and are usually within 30 days to 24 months.
Some lenders will also consider income and employment status when determining approval for auto title loans. But all you need to apply for a title loan is proof that you own your vehicle, and there is no lien on your title.
With a car title loan, lenders will evaluate your vehicle’s value, to ascertain how much the applicant is qualified to borrow. Before you apply for a loan, it’s ideal to do some research and calculate how much auto equity you own and the worth of your vehicle.
An online resource that helps cars owners calculate the value of their vehicle is the Kelly’s Blue Book. When you know the worth of your vehicle in the resale market, you’ll be empowered to negotiate the amount you can borrow as well as the rate of interest that is charged by the lending company.
Because the subprime loan market is susceptible to dubious practices that are used by some lenders, you must always read the loan agreement to ensure you won’t be caught in a debt cycle.
By repaying car title loans, borrowers can help rebuild their credit. To do so, they must pay it back on schedule, as laid down in the terms of the agreement. This will offer you access to traditional sources of funding in the future.