A car title loan is not your only available option. There are other options which can bail you out of your financial crunch. Read.
Given the entrapping nature of car title loans, it is always better to explore other loan options. To start with, it may seem other loans simply don’t exist, but it wouldn’t be right to conclude without giving it a try. In fact you should leave no stones unturned to explore other available options. Let’s consider some such options open to you:
If you enjoy the confidence of a relative or friend, you may ask them to co-sign a loan with you. This is like cashing in on their good credit score. Again, if you are you need to go for co-signed loan only if you are confident of repaying this loan. Or else you may end up spoiling a good relationship.
Availing unsecured loans which are not title loans is a very good option. To get this type of loan all you need to have is modest income and decent credit. A local credit union is the best place to procure an unsecured loan. Though these loans are like borrowing from individuals, but it is any day better than title loans.
While title loan runs into triple digit figures, a credit card interest rate hovers around 30%. With credit cards, you not only end up paying less but also don’t stand the risk of losing an asset. To ensure your credit card stands you in good stead, it is important to maintain a good credit score. And this calls for a disciplined financial conduct right from the day you start owning a card.
Borrow from the bank.
Banks are waiting to offer personal loans to customers. Again, you need to have a good credit report to get the line of bank loans without any hassle.
Selling stuff, like used furniture, to get some cash in hand is a better option than going for any loans. To get a decent price you can sell stuff through popular sites like Craigs List or eBay. Once you are out of trouble you can attempt to buy a similar stuff. In the process you end up having a new and probably better one. If you are against selling, you can opt for pawning the item. With pawning you get the item back once get over your bad phase. Though title loans are a sort of pawning, you shouldn’t go for it as the intent of the lender is more devious.
Another very good option is to seek cash advance from your employer. Such loans are doled out without any interest. You can pay off the loan on a monthly basis.
Availing any of these alternatives will ensure you don’t face in trouble in future for having taken a loan.