It is one of your worst nightmares. The car breaks down and you are already strapped for cash. Paying for an unexpected car repair bill was not in the monthly budget. The car, however, is important since you count on it to get you to and from the job that helps you pay for all of your monthly financial obligations. What do you do to get yourself through this trying time?
A $500 to $1,000 car repair bill is the last thing that anyone wants to deal with, but it will have to be in order to get the vehicle back on the road. If not, it is likely that someone could lose a job and a source of income. One option would be going to a traditional financial institution, a bank or credit union, and attempting to get a loan to cover the costs. While it may be possible, many financial institutions will not even loan amounts of money that small since they are not beneficial to them. Plus, borrowers will need to have good credit histories and solid employment.
If the amount of money is small and you can pay it back quickly, you could also choose to do a payday loan. A borrower wanting to do so does need to have a job in order to complete the loan process. Loans are secured using the borrower’s paycheck as collateral. A payday loan is obtained, usually, within 24 hours. Borrowers get their money as soon as possible to pay for their car repairs.
A better alternative would be the auto title loan. Embassy Loans in Florida, for example, will loan money to a potential borrower who offers his or her vehicle as collateral. A borrower who owns a car with a clear title can obtain a car title loan. Borrowers must have the title, the vehicle, and a form of photo identification. They will fill out an application, which will be processed by an Embassy Loans professional. Since the car or truck is used as collateral, there is no need for lengthy credit history checks or background checks. The result is that a borrower can have his or her money within an hour.
The result of using a vehicle title loan can help someone cover the costs of repairing a car or truck. That car or truck can then help the borrower continue his or her employment. The loan can be paid off without any worries of a prepayment penalty and life goes on.