Are there options available besides an online title loan?
Online car title loans are becoming common ways to get quick cash when you need it most. The fact that you need to give up the title to your car in order to get that cash may cause concern for some people. As with most short term loans or installment loans there are going to pros and cons to each type of loan. With online title loans you will experience many of the pros when you get your cash. For example, you will get to keep driving your car or motorcycle while you have the title loan out. Additionally you can typically borrow a good amount of money with the average title loan. Often up to $30,000 if you vehicle has enough of a blue book value. Another benefit of title loans online is the fact that you can stretch out a car title loan for much longer than a payday loan or even a cash advance loan. We’ll get into these title loan alternatives later. These are some of the positive aspects of a title loan. There are negative parts of a title loan as well and we’ll get into those in the next paragraph.
With most online title loans you get to keep driving your car but you will run into big trouble if you fall behind on the monthly payments. The contract you signed will often include some type of language in it that lets the lender reposes your vehicle if you fall behind on the title loan payments. Another drawback is the fact that you will pay a lot of money in interest and finance charges with each monthly payment. Some online title loans have the option in place where you can pay off your loan early with no penalty. If that option is there you want to take that option! The amount of money you’ll save by paying off your title loan early is huge and can result in hundreds of dollars more in your pocket each month. When we talk about other alternatives to title loans we often discuss payday loans and installment loans. These are effective ways to address short term cash issues but they don’t really do much if you need 5 or 10 thousand to pay medical bills or something similar. Also, most bank lenders and installment lenders will require that you have good or very good credit to be approved for that type of loan. Good luck getting a bank loan if you don’t have good credit or if you have past due bills!
Some alternatives to online car title loans may be a variation of car title loans themselves! For example, did you know you can use your motorcycle title or boat title to secure a loan? That’s right, most of the same online title lenders will gladly give you cash in exchange for your boat title or motorcycle title. One benefit of using a motorcycle or boat title is the fact that your probably not using this item as your primary vehicle. So, if you find yourself in a situation where you can’y make the monthly payment you won’t run the risk of losing your car. Another thing to remember about motorcycle and boat title loans is that many lenders won’t give you near what you think your item is worth. We’ve heard stories where someone went to get a loan for their motorcycle loan, but only got 20% of the item’s value. The lender will say they need to do this in order to ensure a profit if you default, but you’ll want to do all you can to shop around and find the best title lender. Lastly, another alternative is to forget about even using your title as a way to get a loan. Title loans are easy to get and are becoming more common but you should always try conventional methods of getting a short term loan before resorting to an online title loan.