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Title loans are a powerful tool for dealing with emergencies. In as little as 30 minutes you could receive cash amounts up to $15,000 to deal with whatever you’re facing. But just because they can help you handle almost any kind of unexpected expense or emergency that rears its head doesn’t mean there aren’t a few factors you should take into account before getting one.
Like any other type of loan, there are distinct pros and cons to taking out title loans. What are they? That’s what we’re going to address in this article. Here’s what you need to think about before taking out a title loan in Texas.
This is really the million-dollar question. In the midst of an emergency, it can be difficult to gauge exactly how much money you’ll need to ride it out, but it is still an important thing to consider. You want to get a loan that is large enough that you won’t come up short and need to find another loan later, but you also don’t want to borrow any more money than you need. Take the time to closely examine your borrowing needs and then discuss your options with a store representative.
Another consideration is how quickly you need access to the money. Many cash emergencies are time sensitive, and the longer you wait the worse these situations can become. Luckily, the cash from a title loan is much faster than almost any other source of emergency cash. Title loans could put the funding you need in your hand in as little as 30 minutes, which is an absurdly fast turnaround compared to traditional lending sources.
Simply put, yes. One of the biggest misconceptions about title loans is that you don’t get to keep and drive your vehicle while making your payments. The only thing the title loan business keeps as collateral while you are repaying your loan is the (pink slip) to your vehicle. You keep and drive your vehicle as usual, which means getting the extra cash you need won’t prevent you from living your life or getting where you need to go.
There’s no definitive way to answer this before actually going through the title loan approval process and receiving an offer, but there are a couple ways you can get an estimate of what your vehicle is worth ahead of time. An easy way to get an idea of how much your vehicle is worth is to look up the make and model and miles on an online directory. Ultimately, how much your car is worth will be decided by a quick inspection when you take it in to get a loan. From there you can decide if you are better off getting a title loan or selling your car.
As should be the case when considering any kind of loan, the most important question you should ask yourself before moving forward is how much, and how quickly, can you pay it back? We’ve all been in situations where we’ve bitten off more than we can chew, but knowing your limits when it comes to short-term loans is essential. Think seriously about how much wiggle room you have in your budget each week, and how long and at what rate you’ll be able to pay back the balance of the debt.