It is no secret that single moms often struggle financially. Many are hardworking, dedicated employees and moms who live from one paycheck to the next and hope that nothing comes up in between. The problem is that something always does come up. It could be a medical bill, a car repair, or a number of things, but there is usually something that pops up from time to time to destroy the monthly budget. Here is a how single moms can borrow money in periods of financial emergency.
Car Title Loans
There are many single mothers out there who worked long and hard to buy a vehicle to make sure they can get to their place of employment and run their kids around to various activities. Many probably do not know that they can use their vehicle to borrow money. If the car or truck is paid off or nearly paid off, they can use the vehicle’s title as collateral and borrow. Companies like Embassy Loans of Florida have helped thousands of customers access money using their vehicles.
How To Obtain A Car Title Loan
The first step in obtaining a car title loan is filling out an application. Most companies, like Embassy Loans, will let you fill out an application online. Borrowers must prove their identity and residency as well as provide the title to the vehicle. The title loan company will verify all borrower documentation and then establish how much a vehicle is worth. Most title loan companies will use a blue book value. Generally, borrowers can receive up to 50 percent of the blue book value.
After a value is determined, the final terms of the loan can be drawn up. The documents are signed and then borrowers can receive their cash, most often by direct electronic deposit. The entire process can take as little as a few hours and usually never takes more than two days. Obtaining a car title loan is quick and easy.
No Credit Worries
Unlike more traditional loans, a car title loan is not based upon credit. Most title loan companies do not need to run a credit history check and really don’t care what a single mother’s credit score might be. A car title loan is secured by a car title. If the borrower fails to repay, the lender can take possession of the vehicle. The lender will usually sell the vehicle in an effort to recover its losses. The bottom line, though, is that single moms do not have to worry about their credit history in order to borrow money.