The global economy isn’t at its strongest right now. Governments across the world continue to struggle to curb the spread of COVID-19 pandemic while trying to keep economies afloat. People are reluctant to spend because they feel financially insecure.
However, life must go on. Although freelancers and entrepreneurs are somewhat better equipped to deal with a global downturn than others, have regularly had to deal with economic fluctuations, it doesn’t mean things aren’t difficult. If you find yourself in a financial pickle, there are a number of options when it comes to accessing extra funds, some of which many people haven’t even heard of. One rarely discussed the source of support is a car title loan. Here are some compelling reasons this could be the best option for those who need money fast:
They Are Affordable
Bank loans aren’t always easy to qualify for and can be pretty costly, but car title loans are much simpler. Your car is used as collateral for these short-term loans and the interest you can expect to pay is usually minimal. The reasonable interest rates on such loans are a major draw when you need a little extra money in a hurry.
You Don’t Need a Good Credit Score
Car title loans are based on lenders temporarily taking over the title on your car. Theoretically, the lender is able to repossess your vehicle should you default on your loan. The vehicle offers the lender some security, and therefore there is no need to base eligibility on credit scores. Even if you have a poor credit score, this option allows you to get your hands on the cash you need quickly. However, you do need to prove you can pay back the loan.
Bureaucracy Is Limited
Unlike regular bank loans, which are incredibly bureaucratic, car title loans are quite easy to apply for. All you need to apply for a car title loan is a copy of your ID, a completed application, the title deeds for your car and proof of income. The lenders take care of the rest and will decide how much you are entitled to depending on the value of your car.
You’ll Still Have Access to Your Car
While the lender keeps the title deed of your car until you’ve fully paid back the loan, they still allow you to keep your car. There is an acknowledgment that you might need the vehicle to work and pay the loan back. Having access to your vehicle is one of the best benefits of taking out a car title loan.
Tailored Payment Plans
Finally, you’ll find that most lenders understand that people are taking out these loans, since times are tough. They’ll create a payment plan that is convenient with repayment installments that take account of your personal budget. The fact that you’ll have a tailored repayment plan reduces worries when it comes to figuring out how to pay back the money.
When you are in financial distress, it is easy to feel overwhelmed and jump at the first opportunity to borrow money. This isn’t the wisest decision, though. It is important to investigate all options available before making any commitments. By doing the necessary research, you may find some relatively unheard of financial solutions such as car title loans, which may, in fact, be perfect for you. If this is an option you find compelling, you’ll find there many reputable lenders for car title loans Los Angeles, so approach the companies to learn more.