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Want An Alternative To Payday Loans? Try A Car Title Loan

Payday loans have their uses, but sometimes, they just aren’t suited to fit your needs. Here’s an alternative to payday loans you can consider.

Compared to short-term payday loans. A car title loan lets you borrow a larger amount and is a great option for people who own their vehicles outright.

If a payday loan just isn’t enough to cover your emergency needs, then you might want to consider title loans as an alternative to payday loans. In this article, you’ll learn the difference between the two and discover why a car title loan might be ideal for your circumstances.

What Is The Difference Between A Payday Loan And A Car Title Loan?

A payday loan is a very short-term loan that is unsecured, meaning that it doesn’t require any collateral to obtain approval. Loan amounts range from around $100 to $500 depending on what you qualify for, and if you take out a payday loan, you’ll usually be obliged to repay it by the time your next paycheck rolls in.

Under most loan agreements, that’s a repayment period of about 1 month. You can consider a payday loan as an advance on your next check, giving you access to those funds earlier in order to use them at your discretion for an emergency.

get car title loan alternative to payday loan

A car title loan, on the other hand, is an alternative to payday loans where you use your car as collateral to secure the loan. This loan option boasts several advantages over a payday loan. First, you can qualify for a much larger loan, with amounts of up to $15,000 depending on the condition of your vehicle.

Another major difference between the two loan types is that title loans have a much longer repayment period of 1-2 years, although your exact terms will vary based on the lender.

Of course, you shouldn’t take this longer repayment period as an excuse to be lax in your repayment, but a long time to repay may help you focus on your payments so that you can stick to the payment plan as outlined in your agreement.

When To Choose A Title Loan

You may opt for a title loan in various circumstances where a payday loan just doesn’t give you the amount of cash you need. The following situations, for example, are causes to consider a title loan:

  • Expensive medical bills
  • Costly home or auto repairs
  • Expensive business travel

Medical Bills

Medical debt can be extremely stressful, especially if you’re hit with a bill you weren’t expecting. Whether the costs are for future treatment or procedure, it’s paramount that you tackle medical debt as it arises; otherwise, you can be left paying medical installments for months, sometimes years, with the billing department breathing down your neck all the while.

A title loan is better than a payday loan in this situation since it offers larger borrowing amounts to cover medical bills.

Home Or Auto Repairs

Another emergency in which to consider a title loan is when your home or car needs repairs. These bills can range in the thousands, but you’ll want to tackle problems with your most valuable assets, your home, and your car before the issue becomes irreparable.

Business Travel

Your business is your livelihood, and it’s important that you protect any business opportunities or investments you have. As such, a title loan can be a good option if you need to pay for costly business travel expenses.

woman got car title cash

How To Get A Title Loan

Auto Cash USA can connect you with a vendor through a network of licensed, reputable lenders that can help you with the emergency cash you need.

A title loan isn’t right for every situation, but if you’re considering one, here’s how you apply:

  1. Fill out the online form provided by Auto Cash USA and wait for one of their vendors to contact you.
  2. On the phone, the associate will go through the loan process, what you may qualify for, and what your monthly payment may look like.
  3. Schedule an appointment with the representative at a location you decide and bring your required items (state-issued ID, lien-free title, your car) to the meeting.
  4. At the appointment, the representative will inspect your documents, car, and VIN. If you’re approved for the title loan, you’ll receive the money you need on the same day or the following business day.

Submit Your Online Inquiry Today!

Payday loans aren’t for everyone. Thankfully, there is an alternative to payday loans if you own your car outright. This alternative is a car title loan. With this type of loan, you can get up to $15,000 for an emergency situation, and you can still be approved even if you have poor credit.

If life’s got you between a rock and a hard place, consider this alternative to payday loans and get the cash you need today. Get started now with the easy online form!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.