Paying off high interest debt can be daunting and much tougher than what you may perceive it to be. Saving money, while owing huge amounts to creditors and lenders is nothing but a futile attempt; no matter how knowledgeable you are about saving money and dealing with unanticipated situations. Accidents and emergencies happen to anyone but people should be equipped in the best way to deal with them smartly and wisely.
There are times when you break even, when all you need is small amount of money to repay a debt amount that has long been overdue. This feeling of being so close yet so far is indeed frustrating than being in debt. This is when you should consider car title loans which are short term loans for a borrower using collateral. Let’s check out the few reasons behind using a car title loan when you require cash.
Reason #1: Because your credit score is not important
Who doesn’t love to take out loans from lenders who won’t check their credit score? As long as car title loans are concerned, you can get such loans even though you have poor credit score or you’ve declared bankruptcy. All you require is a residency proof, a bank account and a car title that’s clean. Your credit history and income history as something irrelevant as you use your car as collateral to the loan. When you fail to pay the amount, the lender will sell your vehicle to recoup the money.
Reason #2: Because you can get immediate cash
A second reason to obtain a car title loan is that you can get immediate cash. There are several traditional lending institutions which make you wait for long time after requesting the loan. Title loans, on the other hand, get approved within hours. As reports reveal that 78% of Americans are living from one paycheck to the next, this options seems indeed helpful.
Reason #3: Because the limit to borrow is based on the value of the vehicle
If you approach large banks, they use a specific formula to determine the amount you can borrow. Then the bank checks everything from your assets, income to your bank account history. On the other hand, the borrowing limit that is set on the car title loan is based on the value of the vehicle. This will always work in your favor as used car prices are usually around $14,385. You can borrow a percentage of the value of your vehicle to handle even the biggest bill and other emergencies.
Reason #4: Because the process of repayment is easy and flexible
One final reason to use car title loans is that the repayment procedure is easy and flexible. Title loans offer you the option to spread payments through several months. Hence you can repay the loan without bankrupting yourself.
Therefore, if you’re in need of instant cash and you’re car-rich, what are you waiting for? Approach a car title loan lender and get the loan to access its benefits.