Financial hardships happen to good people too. Regardless of how much you plan for a rainy day, you might find yourself in need of money and your life events can take you by surprise. If you own a vehicle, using a Title Loan as the source of emergency financing comes relatively easy so long as you have a stable source of income.
Title Loans are a good choice when compared with payday loans for one central reason: you can borrow more with a title loan than with a fast cash advance. Payday loans give you hundreds, but car title advances may grant thousands for unexpected expenses. Perhaps the best news associated with title loans is that they are just as easy to obtain as a short term cash advance.
How much you would be qualified for depends on the year, make, and model of your car. Whereas older cars are usually approved for lower amounts due to depreciation, newer cars can often garner higher loans. There are exceptions to this theory. You may be offered more money for a 2004 Mercedes-Benz S-Class than a Toyota Corolla in the same year because of added luxuries that Mercedes-Benz automobiles bring to the table.
Calling bill collectors to make arrangements for your next payday is embarrassing and passing off bad checks is even more troubling. A car title loan gives you the cushion needed to pay the bills on time.
Banks assess your checking account an overdraft fee of at least $25 every time a withdrawal contributes to your insufficient funds. Imagine paying upwards of $125 in overdraft fees alone for several automatic withdrawals that took your checking account well into the red. Things only get worse when you consider the possibility of the bank denying your creditor’s request. You may find yourself on the receiving end of harassing phone calls and aggressive collection efforts in such instances. Car title loans spare you the costliness of overdraft fees and the embarrassment of outright denial.
Payday advances come with the misfortune of requiring payment in full within two weeks to one month after taking out the loan. Such short-term financing option does little to build credibility and sometimes places you at even greater odds as lump sums used to repay payday loans leave your budget in disarray. Car title advances stop the cycle of scarcity by granting you hundreds, or even thousands, repayable over time. You can borrow $5,000 today and pay twenty percent of the loan with interest every month. It is much easier to craft a workable budget around small recurring payments than attempt to plan for large remittance that takes a third of your paycheck.
A car title advance is not the equivalent of a personal loan, which means that you do not have to furnish a stellar credit score along with documents that prove your overall stability. Your vehicle is the central source of your security in the loan agreement. Showing an ability to repay promptly is, for the most part, all you need to get approved for a loan. So why wait?