Car title loans have become more popular in the last few years as the conventional loan market has become more difficult to enter. Because of the financial crisis that struck the U.S. in the late 2000s, lenders have tightened their standards and access to cash has diminished for the average American. Car title loans, though, offer an avenue for quick cash for those who a vehicle. The loan is a secured loan that offers the title to a car or truck as collateral for a loan. Should the borrower default, the lender may take possession of the vehicle and sell it to recover its losses. As long as borrowers pay the loan off in a timely fashion, the car title loan is a great option, especially in the following cases.
- Car repairs
What do you do when your ride to work breaks down? You need to get to your job every day, but an unexpected car repair is not in the budget. You can apply for a car title loan if the car is paid off and you have no other liens on the title. In most cases, the vehicle must be no older than 10 years and in good shape. Because car title loans do not require a lot of the paperwork associated with traditional loans from a bank, they are processed much quicker. Embassy Loans of Florida, for example, completes most vehicle title loans in an hour. Once the borrower receives the money, the car repairs can be paid.
- Emergency medical bills
There are times when you may face an unexpected medical emergency. You have to get to a medical facility quickly and be treated. With insurance these days, there are likely to be some bills that you may have to pay. A car title loan can give you access to the funds needed to pay these bills. This way, the medical bills do not affect your credit history in a negative way. Once you pay off the car title loan, your credit will actually be affected in a positive way.
- Death in the family
Many families do not prepare for the inevitable. When an unexpected death in the family takes place, there are a number of costs that will be incurred. When those costs are not in the budget, a car title loan can give you access to the money needed for things such as plane tickets, travel expenses, and more.