If you’re fortunate enough to be earning a decent income and building your savings, then in the event of an urgent financial need — such as a vehicle breakdown or even a weekend trip to the emergency room — you’ll have money to fall back on. But what happens if you don’t? Whether you’re unemployed or simply don’t have a lot of cash to spare, getting caught by an urgent matter and not having the funds to take care of it can be very stressful. In these times of need, a title loan from a company such as LoanMart can help you out. Some things to consider:
A title loan uses your vehicle as collateral. You will need a “free and clear” vehicle title (a physical copy of your car’s title, and it must not have any current liens against it) to give to the lender. Once you pay back the loan in full, you’ll get your title back. If you do not re-pay your loan in full, you stand to lose your vehicle, as the lender will confiscate it and sell it to recoup.
Title loans generally do not require a credit check. Don’t let poor or insufficient credit stand in your way. While traditional loans from banks require a decent credit score, with a title loan, providing physical collateral in the form of your vehicle absolves you of the need for good credit.
Title loans should be used for emergencies only. As much as we’d like to argue otherwise, a weekend getaway is not a need – it’s a want. Save up for that kind of splurge. But for towing costs, or emergency medical treatment, or an urgent home repair, a title loan is a great solution.