Emergencies almost always mean expenses. The worst part is, many people who find themselves facing such situations don’t have the means or are lacking in terms of finances. The first reaction of most is to seek the assistance of banks and credit unions, hoping they can get a personal loan.
Before you decide to take this step, though, consider your other options. One of your alternatives to a bank loan is a car title loan.
Qualifying for a loan
As long as your name appears on the title as the car owner, and you have a steady stream of income, you can apply and qualify for this kind of loan. There are a few other requirements, but in most cases, reliable lenders in West Valley City will not make it hard for you to get approved. Utah Money Center even mentions that some lending companies let you choose the payment plan.
Basically, the loan process involves the submission of an auto title loan (the name should be of the borrower) in exchange for the money. Lenders typically lend around 25 percent of the vehicle’s current market value. Some companies don’t take into consideration the financial capability of the borrower to make repayments.
Length of processing time
Compared to bank loans, lenders process title loans faster. There are even some firms that give their approval within the same day, giving the borrower access to the money soon after they qualify. This quick approval is helpful for those who are in serious financial pinches.
Responsible Lending and Investopedia warns to be careful when choosing a lending company, though. Take the time to compare the rates they charge, and check their history for any complaints. This way, you can rest easy knowing that, as long as you make repayments, you can retrieve your car title.