Financial emergencies will always occur and even with the best planned budget, you might find it hard to sort these out. It is true every financial manager advises you to build an emergency fund but while you might have the intention to do so, the reality of these economic times makes it impossible.
This is the reason why title loans and other financial alternatives have gained prominence in recent times. Even as incomes rise, the cost of living keeps going up and households find it harder to plan for a rainy day. With an option such as a car title loan, a household owner will find it easier to deal with unexpected expenses without bothering the family, using their retirement savings or selling a valuable asset.
Title Loans during Emergency Situations
Recent studies among American households paint a grim picture as more people seem unprepared for emergencies. A 2016 St. Louis Federal Reserve Study published on USA Today says that 7 in 10 Americans (67%) have less than $1,000 in savings. In July 2016, savings were a mere 5.7% and a whopping 34% of Americans had no dime in their accounts. A Bankrate Survey shows that only 4 in 10 Americans have savings they can rely on during an emergency.
These figures clearly highlight the need for an alternative source of money in case of an unexpected expense for your family. Like most folks, you might not have an emergency fund to turn to on a rainy day.
It might not seem like such a situation can arise but remember, an emergency is always right around the corner. Your child could fall sick or your car could break down in the middle of the month. Indeed, there are many situations that qualify as emergencies and if you don’t have quick access to cash, the situation can only get worse.
This is where a car title loan comes in handy. If you own a vehicle with a lien-free car title, then you qualify for a fast loan. This is a form of secured loan where your car serves as collateral. The loans are suitable for anyone with a regular source of income. Your loan assistant will work with you to come up with a tailored loan package that suits your financial situation.
The best thing about these loans is the fact that you will get to keep your car during the loan term. More importantly, these loans are ideal for those with poor credit because no credit checks are involved.
With the prevailing economic situation, it is no surprise that many title loan companies have emerged. If you are looking for a title loan, this can be an overwhelming experience, especially for a first-time borrower.
Luckily, you can use the following tips to find the best loan deal to sort your emergency:
- Go Online and Research
Before applying for a title loan, ensure you fully understand the implications. For instance, consider the fact that this loan is secured, meaning your car serves as collateral. In case you default, your car will be sold to recover the pending loan amount. It is also important to learn about the eligibility criteria; for starters you have to be over 18 years old with a regular source of income. The car title should be registered in your name. Your car’s condition is also a major consideration when your loan application is being evaluated.
- Consider Your Financial Needs
The best thing about title loans is the fact that they are tailored to suit your unique financial needs. As such, you must evaluate what you need before starting a title loan search. Most people get it wrong by first looking for lenders and jumping at the first offer they find. To avoid this pitfall, list all the expenses that you would like to sort out urgently.
In addition, consider your source of income and identify an amount that you can easily repay without disorienting your life. It becomes easier to find an online title loan when you already know the amount you want and your repaying capability. This way, you don’t fall for seemingly irresistible offers which you find online.
- Identify a Good Title Company
The type of Loan Company you buy a loan from will determine how this experience turns out to be. Many people have poor experiences because they don’t take time to research the title loan companies they want to use.
There is so much information available online including reviews, testimonials, BBB accreditation and other resources to help you find a good lender. Take time to ask around for referrals from family and friends. It is also good to ascertain that your loan company is licensed to operate in your state.
- Check the Loan Contract
Every lender offers a unique loan package. With so much competition in the financial industry, every lender wants to lure consumers instantly. Many incredible offers turn out to be nothing more than hype. The reason there are so many complaints about title loans is the fact that most consumers are in a rush to take care of emergencies, which means they don’t go through the contract keenly.
To avoid this pitfall, talk to your loan assistant and request to be taken through each item in the loan agreement. Take time to identify any hidden charges, early and late repayment penalties, and administration charges among other things. For instance, are you allowed to keep your car? Who does the car valuation? All these details guarantee you get the best deal.
- Use an Online Lender
The internet not only provides invaluable information about different title loan companies but also allows consumers to find the best loan products with minimal hassle. It is possible to apply and get approval for your loan with a few clicks. In fact, the best loan providers even have title loan calculators on their platforms. Using the model, VPN and other details of your car, it is possible to know how much you can borrow without leaving the comfort of your home. This convenience is a big reason to go for an online loan company.
Title loans are a Godsend for American households because it is now possible to resolve financial emergencies faster and more conveniently. You can borrow a large amount fast and the repayment schedule is flexible. Whatever financial emergency you are grappling with, a title loan comes in handy to get you back on your feet. Take time to do your research to find a good loan provider and the best loan deal.
