In times of emergency, there may be few people or options you can turn to for cash, especially if you’re not employed or are self-employed. And if you have a bad or no credit history, it may be even more difficult to get a quick loan.
When you’re temporarily strapped for cash, title loans can bail you out and prevent you from taking desperate measures or from having to depend on untrustworthy people and agencies whose motives are suspect.
Cash Title Loans for Emergencies
Title loans, may be the only source of emergency cash available for those with a bad credit history. All you need is a clear title on a vehicle that is paid off or nearly paid off to qualify. Pink slip loans are short-term loans that are meant for emergencies.
Because they are secured with a car title, they are easier for people with a history of credit problems to obtain. There could be several situations when you may need a quick cash loan urgently including:
* Emergency medical aid or urgent dental or veterinary procedures
* Sudden auto repairs needed for a car
* Emergency household maintenance like roof repair
* Cash required for bail
Remember that title loan lenders charge higher interest rates than traditional loans because they are typically given to borrowers with a low credit score and represent a higher risk for the lender. However, these rates are lower compared to the exorbitant rates charged on unsecured loans. You can usually get from 25 to 50 percent of your car’s value as a loan, as long as you have a clear title to offer as collateral.
When used wisely, a car title loan can not only bail you out of trouble, but also help you improve your credit score. You could use it to pay pending mortgage payments or other unsecured debts that could adversely affect your credit score. If you make the repayments diligently, on time and according to the schedule stipulated in the loan agreement, it will reflect positively on your credit score.
As an emergency cash option, a title loan could be a quick and convenient option for most life situations. As long as you have a plan to use it responsibly and repay it, you can benefit from this option.
It is recommended that you always read the lending agreement cautiously and make every effort to follow the predetermined repayment schedule closely. Depending on the lender you choose, you could typically be paying high subprime interest rates and may end up saddled with strict repayment terms, extra lending charges and harsh penalties for late or missed payments.
Getting approved for title loans is the easy part and can happen almost in a matter of minutes, when you apply online. In most cases, you can have cash in hand in a few hours, provided you can offer all the documentation required.
Make sure you choose a reputed lender that offers flexible repayment terms, no prepayment penalty, a promise of complete confidentiality, and competitive interest rates compared to other lenders in the industry.