The Best Car Title Loan Alternatives

 

Being able to handle emergency expenses is a common concern and that’s why there are multiple lending options available and many of these are viable alternatives to car title loans. We’ve all been there at one point with our finances. You try to keep your finances and budget in order but there are always going to be unforeseen expenses. These budgetary issues are exactly what a car title loan is intended for. Unfortunately, need often trumps knowledge in these situations. Many first-time borrowers are left with the unanswered question, “Where can I get a personal loan?” The answer doesn’t start and end with car title loan companies. Many borrowers lack the credit to obtain standard loans. But you have other financing options available. You can find other alternatives that may be in your best financial interest. Here at Car Title Loans 123 we want to provide as many viable lending choices as possible. Let’s break down the various resources available to you.

 

The Best Alternatives to Car Title Loans

When most people consider “Where can I get a personal loan? they think of banks, large and small that provide different types of funding. These banks and credit unions are well-qualified to process standard personal loans. But it can take weeks or months to finish the paperwork. Look at the rates offered by a bank loan and find out how much less they are than a company that offers online car title loans. In comparison to online title loans, you will need good credit, but the interest rates will be less than what you see with a secured loan offer. Choose the best bank to handle your personal loan request. Find out the exact amount of paperwork they need before you apply. Compare this to a title loan online, where a credit report isn’t required and you can even get a title loan with no job!

Most banks and personal loan companies require a full review of your credit and employment history. Some will check your prior experience with the bank or see if you’ve had any previous loans or buyouts. You also need to provide listings of current revolving credit, employment status, and your income-to-expense ratio. If you are unwilling, or unable, to meet or provide these expectations and information, then another option might be best for you.

 

Peer to Peer Loans As An Alternative To Title Loans

Trailing close behind banks in necessary paperwork are peer-to-peer lending services. Benefits from a P2P lender are immense for borrowers but the entrance is often barred by high standards. A standard title loan lender shouldn’t expect to turn to a peer-to-peer lending network to answer the question of where to find a cash advance. More often than not the requirements for credit scores alone will prevent a successful application.

You may qualify if you provide a good credit score, are a full U.S. resident, and have an excellent debt-to-income ratio. Applicants can qualify to enter one of these networks, which provide very low interest rates and flexible payment plans. This type of person to person lending is considered an investment by the US Government and needs to be evaluated as such. This form of borrowing is rather new and you should stay updated on the constant regulatory changes that occur in this industry. Finance charges with a p2p lender much like a bank loan are going to be much lower than what you see with car title loans online. But, it’s hard to be approved with optimal conditions.

 

Credit Card Advance Versus Cash Loans From The Best Title Loan Companies

Do you know the answer to “Where can I get a personal loan?” It often does not involve the use of a credit card. But this can be a quick, painless remedy when you need fast cash. Look at the benefits of a credit card cash advance instead of a car title loan. A credit card advance can spiral out of control in some cases. Many borrowers will go through this period of high debt. Credit cards should not be used to pay off high interest payday loans. Plan ahead when you consider a personal loan instead of a car title loan. Look at a cash advance or schedule credit card repayments quickly. Complete the monthly payment in no more than 1 to 2 months. With this advance, you can repay your debt in full. Don’t get to the grace period to avoid any accruing interest.

Most auto title companies will not charge a prepayment penalty and they will approve title loans for older cars or those with high mileage. Make sure the creditor has the same policy on late payments and fees for early payoffs. That way you don’t have to pay an upfront fee for a payoff.

 

Payday Loans As An Alternative To A Title Loan

Expect a large interest rate or finance charge attached to the loan in most cases. Interest rates with a cash advance will be high. Online title loans come with lower finance rates in most cases. But you need to hand over your car title as collateral. As with most lending scenarios, you should rarely look to a payday loan to solve the dilemma of a significant financial need. Instead, consider how much you can borrow with a title loan and determine if the interest rates and payoff amount makes sense for your financial need.

Some payday loan services’ terms and conditions often skate the boundaries of usury laws because of aggressive lending rates and fees. Others have predatory loan clauses that can result in a significant loss of money or personal effects if fully agreed to. The flip side of a payday loan is that many consumers will qualify for payday loans. Similar to online title loans, you’re going to pay more in monthly finance charges, but this is intended as an emergency advance. A borrower needs to determine if the quick, low-criteria loans are worth the exorbitant fees and high interest rates are worth the hassle

 

Borrow From Family and Friends Or Get A Low Interest Loan

Do you ever ask yourself, “Where can I get a personal loan” from a friend or family member? Do you need short term cash instead of seeking out car title loans completely online? Luck is on your side if it’s an easy financial transaction and you don’t need to turn to the best title loan providers. Most borrowers shy away from asking friends and family. Some people may want your pink slip as a form of collateral to back up the loan. Getting a loan from a close relative can end in a damaged relationship. A personal loan between friends should only be taken out in certain situations. Be sure both parties know the risks and obligations.

Use these tips to find the best title loan companies

Compare the best alternatives to working with a licensed title loan company.

Susannah Harmon
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