Title loans are a convenient option to secure emergency cash! If you have a paid-off car or you are close to finishing your car loan, a title loan can be a lifeline to get back on your feet. But if you aren’t sure that a title loan is right for you, then you may want to learn about your other options. So what are the title loan alternatives? Here’s what you need to know.
Affordable Alternatives to Title Loans When You Need Emergency Cash
Not quite sure that a title loan meets your needs? You can try to explore alternatives to title loans, such as:
INSTALLMENT LOANS
Some title loans are installment loans, but not all of them. The terms of the loan can vary depending on your state of residence. However, installment loans can be either secured or unsecured by collateral. With an installment loan, you are paying the loan back in equal installments over time. Installment loans can be convenient if you meet the lender’s criteria and can provide proof of income. Typically, secured installment loans can be easier to qualify for than unsecured loans due to the nature of the loan.
ASKING YOUR PARENTS
Let’s say that you want to explore auto title loan alternatives, but you don’t want a loan. You can ask people that you know to give you a loan, and it is typically interest-free! Involving money in a relationship can change it, and not always for the better. If your parents or friends are able to assist you, make sure to pay them back in a timely matter. You should work to set realistic expectations to pay them back, which includes a payment schedule and constant communication. Do not borrow any funding that you aren’t sure you can realistically afford to pay back! Otherwise, you could sour your relationship with someone you care about.
GETTING A SECOND JOB
If borrowing money from a loan or friends is not an option, you may want to consider using your free time on the weekends to get a second job!
You can work a seasonal position part-time at stores like Lowes, Target, or even HomeGoods. Some jobs can be a little bit more flexible than others when it comes to getting hours.
Just remember that if you do decide to take on additional hours, you can easily get burnt out. Make sure to find the balance between work and your personal life!
GETTING A COSIGNER
If you are ineligible for a loan due to your credit history, you are not out of options. You may be able to ask a trusted friend or family member to cosign a loan with you. Whether it be a title loan, personal loan, or an installment loan, you can try to bring on a cosigner with a better credit history in order to increase your chances of loan approval.
SELL YOUR CAR
If you don’t want to borrow against the value of your car, one of your other options is to sell it. But, then you lose access to your primary source of transportation.
What is the Easiest Loan to Get Approved for?
The easiest loans to get approved for are typically cash advances, payday loans, and title loans. Each type of loan option comes with both pros and cons!
- Title Loans: A title loan is a type of secured loan that lets you borrow against your car’s value. Since the loan is secured by the title of a qualifying car or truck, it’s a lot more flexible in comparison to traditional loans!5
- Payday Loans: A payday loan is a short-term loan meant to last a borrower in between paydays. While payday loans tend to be easier to qualify for than traditional bank loans, they often come with high origination fees and interest rates.
- Cash Advances: Another option to get emergency funding is a cash advance, which may have less stringent credit requirements in comparison to other loan options. Typically, cash advances are unsecured. some lenders require that you have an active bank account to get approved.
Can You Legally Get Out of a Title Loan?
The most surefire way to get out of a title loan is to simply pay it off in full. You won’t be able to sell your car with a title loan on it! If you are having trouble keeping up with your title loan payments, you can try to refinance your existing loan to get different loan terms that are hopefully more manageable. Otherwise, you can also ask the lender for a loan modification.
Explore Title Loans
Exploring alternatives to title loans can be a smart way to find the financial solution that best fits your needs. However, if other options don’t align with your circumstances, a title loan could still be an efficient way to access funds quickly. To learn more about how a title loan might work for you, contact Max Cash® Title Loans today and take the first step toward securing the cash you need.