When you need cash for an emergency, you can be at a loss if you have low income or bad credit. You won't be able to qualify for a traditional loan, so you may need to find an alternative loan source. One option to consider is a title loan. If you own a car that has enough value, then you might be able to get the cash you need by handing over the title to a lender temporarily. To do this, you need to find a title loan company. Here's some information on how this works.
Bad Credit Is Okay
Your credit score doesn't matter when it comes to a title loan. You can still get cash if you have bad credit because your car is used for collateral and the lender holds the title until you pay off the loan. You don't have to explain why you need the loan and you can even have low income. Some lenders may give you a title loan even if you've lost your job as long as you have some type of income. The money could come in handy until you get work again, but you'll want to understand the repayment terms if you have no or low income so you don't lose your car if you can't repay the loan.
The Loan Is Limited
Even if you own an expensive car that is paid off, you probably won't get a loan for the full value of the car. You will usually be limited in how much you can borrow. The lender might want to see your car to further determine its value, but it's possible you might just submit a photo instead. The lender can estimate the value based on model and year. You'll need to prove you actually own the car by providing identification along with the car's title.
The Loan Is Often Short Term
A title loan may be a short-term loan depending on how much you borrow and other factors. You might need to pay it back in a lump sum in 30 days or you might make payments over several months. Be sure you understand the terms of repaying the loan and be confident you can handle them before you take the money. If you run into trouble paying back the loan by the agreed date, the lender has the right to take possession of your car. Losing your car would make it even more difficult to find a job or go to work.
A title loan can come to your rescue when you need cash in an emergency. Understanding the terms before you take out the loan helps you be responsible in paying it back so the loan works in your favor and not against you. Contact a company, like American Cash Advance and Title Loan, for more help.