October 8, 2018
When is the Right Time to Get a Car Title Loan?
Unless you are fabulously wealthy, you’ve probably been in a situation where you’ve felt as though you had few financial options to work with. Broke, strapped for cash, or however you call it, being low on money can be extremely stressful for those who need to make payments. In fact, 80% of people in a current or recent financial crisis say that their financial status was the greatest cause of their stress. In cases where money is tight, and stress is high, taking out a car title loan can be a relief. As with all loans, car title loans do need to be repaid, however, there are fewer processes that the loan purchaser needs to go through, which can be a relief.
Is now the time for you to consider a car title loan?
Here are some scenarios that indicate it might be worth your while to speak to a lender about.
When you are looking to supplement your own money on a large purchase.
Car title loans aren’t just for people who aren’t well-off. People who are excellent financial planners also utilize car title loans to fund a large purchase that they might not have been able to complete otherwise. For instance, someone with an existing car that is lien-free might want to purchase a new car. The car could be theirs, but the down payment situation is less than favorable. They either don’t have enough to make a down payment, or the amount that they have will cause them to repay far more in the future. With a title loan on their existing car, they will be able to make a larger down payment on the car they’d like at the time that they want it. Then, when their current car’s loan payments are completed, they are free to sell the car for a greater ROI.
When you must make a large payment very soon and will not have the money by then.
Sometimes, big bills pop up. Last year, the CDC estimated that nearly 136.9 million people in the United States took a ride in an ambulance, and many of the people quoted in this statistic were repeat riders. Of those riders, those who had to be on basic life support only paid an average of $600 per ride. For those who needed advanced life support the average jumped up to $1000 and over. None of those riders were prepared to take an ambulance to the hospital, and probably many of them did not expect to be able to pay for the unexpected expense. This is only one type of unexpected expense, and millions of Americans experience one or more of these financial hardships each year.
When surprise expenses pop up in your life and you need the money quickly, title loans are excellent to take advantage of because they do not take the same application length as a non-title loan serviced through a bank or other financial lender.
When your credit score is too low to get a loan at a bank
Those who have applied for loans before know that it is a lengthy and time-consuming process that involves a hard look at your financial health. Credit scores are a reality that Americans struggle with daily. Experian estimates that at least 30% of the people in its database have low credit. They also make note that this percentage does not include those who have no credit, and no-credit can make an even larger impact on whether you can apply for a traditional loan.
The sad truth is, many of the people who apply for loans do need the cash to make basic purchases, or even to make payments on things they already own. If you are struggling to pay bills on time or need to fund a big purchase but have low credit, this is a perfect time to seek out a title loan lender. They will help you apply and use your car as collateral rather than your credit.
When you are facing a bankruptcy or foreclosure.
You heard us correctly. If you’re under extreme financial duress and unsure how you are going to fund purchases of basic necessities like food, clothing, and shelter, it can be worth it to take some of your last-remaining assets, like your car, and put them up as collateral to fund basic purchases. Keep in mind, this is a situation that is extremely hard to navigate, and even most title loan advisors will recommend that you do everything within your power to make money prior to working with big collateral like cars. However, if you have discussed this with your loan provider and feel confident that you can make payments on the loan even while filing bankruptcy, this could be a beneficial action to take that could keep your belly full in hard times.
When you have no title loans with any other company.
Everything you’ve heard about car title loans is true – you don’t need great credit to apply and you don’t need to wait days before you see the money. There are certain requirements that car title loan applicants must meet to receive their loan. The biggest one of these requirements is that there are no existing liens on your title. Liens might exist from your dealer for paying off your loan or they might exist from other car title owners. To take out a car title loan you must be the owner of the car, which makes sense in the end. We want what is best for the owner of the car and for the loan requester, and the only way that we can do that is by ensuring you are the owner.
Does one of these situations strike a chord with you? We understand, and we are ready to help you get the cash you need for whatever reason you might need it. For more information, stop by one of our stores in Kansas City, Gladstone, or St. Joseph, Missouri or one of our offices in Overland Park or Kansas City, Kansas. Midwest Title Loan looks forward to helping you.