“Get Cash for a Car Title Loan in 20 Minutes – No Proof of Income Required!”
When you’re in dire need of cash, it can be tempting to turn to the easiest and most convenient way despite the risk it carries – like turning to predatory car title loans.
A car title loan is a short-term secured loan offered to a borrower while holding the vehicle’s title as a collateral. When emergency arises and you’re in a pinch, you can obtain quick cash easily as long as you agree to give the title of the car to the lender until the loan is fully repaid. After appraising the vehicle’s value, the lender offers to lend up to a certain percentage of that value. Title loan balances can be much bigger than that of payday loans.
If you own a car and it’s clear and valuable, you may be eligible for a title loan. However, fast and easy money comes with such a huge expense.
Since this type of loan is secured by the car title, you may lose your precious car if you default on your payment. The lender may repossess the car and have it on sale to pay off your loan. In addition, the loan comes with high fees and interest rate.
So if you’re strapped for cash but you don’t want to risk your auto, here are some of the alternatives that work.
1. Short-term bank loan
Go for traditional loan options. If you have a vehicle and a job, you should apply first at a local bank or credit union. Even the most expensive bank loan offer is still cheaper than that of car title loans. Some banks will make collateral loans with lessened credit so you can secure your car at bank-level rates.
These short-term loans are designed to reduce predatory loans such as title loans. Your best bets are small local banks or credit unions since big banks are likely to reject applications.
2. Peer-to-peer loan
Unlike traditional bank loans, peer-to-peer loans are funded by investors. The approval rates are much higher. In addition, the minimum loan amount here may be higher than the minimum title loan amount. This is good if you’re in need of a higher amount, but it gives you a risk of borrowing more than needed.
3. Unsecured personal loan
If you’re confident about your credit history, then you may go for an unsecured personal loan. “Unsecured” means there’s no valuable asset you have to put on the line for obtaining a loan. The loan is issued for a set amount, typically repaid in monthly installments over a set amount of time.
Interest and fees apply but they are much lower than on a title loan or payday loan.
Since the approval is based on your creditworthiness, you may either pay higher rates or get denied if your credit history is in a bad shape.
4. Credit card cash advance
Compared to other loans, a cash advance may be expensive, and therefore should be taken with caution. However, the interest rates don’t reach triple digits, unlike title loans.
The danger here is the possibility that you might take some time to pay off the balance, piling up the interest charges. If you’re going to take out a credit card cash advance, you need to commit firmly to a short-term repayment plan.
5. Negotiate with your creditors
Making a debt to pay another debt?
If you’re struggling to pay a bill, it’s a must to call the creditor first and negotiate. They can assess your situation and credit history and may be willing to offer alternative payment arrangements, discounts, lower interest rate, and waived late fees.
6. Work for the money
I know it’s easier said than done, but it would be a lot better to work to earn the money you needed. With this, you don’t owe anything to anyone. Assess your financial emergency and see if you can get funds without taking out a loan, especially a loan that could cost you your car.
Go extra mile. Search short-term jobs on Craigslist or ask your family and friends if they know job openings. Use your talents and skills for profit. Sell old possessions. Work overtime or ask your employer for an advance on your paycheck. The only requirement is your time and effort.
Author Bio: Carmina Natividad is a resident writer for QuickCash, an Australian-based business, providing short-term cash loans for your borrowing needs. She is passionate about writing articles regarding personal finance and money hacks.