November 23, 2020
Six Unexpected Uses for a Car Title Loan
Get the Cash You Need with a Title Loan from Select Title Loans in Florence, AL
Don’t have the cash for that big move to your dream home? How about that deck you’ve always wanted, just in time for warmer weather? A car title loan can make it happen, and quickly!
Pleasure travel, home remodeling, weddings, starting a new business, and many other needs can be satisfied right away with a car title loan. And the application process is easy! You just need to show proof of ownership for a car, truck, or motorcycle and proof of employment. Just like that, the money is right around the corner.
How Does a Car Title Loan Work?
First, you need to find the right institution to offer you this kind of short-term loan. Look for a bank or other financing company that specializes in title loans, low credit lending, personal loans, or short-term lending. Assuming you own a vehicle, to get the biggest possible loan amount with the least amount of hassle, prioritize car title loans over other options.
Having found a suitable loan institution (like Select Title Loans!), your car title, a photo ID, proof of insurance, and proof of a steady source of income is needed. The original title with no lien will get you started. A driver’s license will do just fine for the photo ID. Proof of insurance is usually done with a copy of the policy or a summary card that most keep in their wallet or glove compartment.
Lastly, proof of a steady source of income can be a recent pay stub, a letter from your employer, or other evidence showing a constant cash flow for the duration of the loan. Alternative forms of regular cash flow can include many things, from documentation proving annuities, to court documents showing alimony conditions, to payments from long-term investments or legal settlements, and more. The number and types of documents vary depending on the loan institution’s requirements.
After you’ve got all your documents in order, your car needs to be brought in to our Florence, AL location for inspection and documentation review. Once approved, you get the cash, keep the car, and the fun can begin!
How Much Money Can I Get with a Title Loan?
Different loan institutions have different policies. It depends on the value of the vehicle and your ability to repay the loan. A general rule of thumb is that the loan can range from 25% to 50% of your vehicle’s value. For example, if your car is worth $10,000, the maximum loan amount you could receive typically ranges between $2,500 and $5,000. According to the Federal Trade Commission, the average loan amount for a car title loan is between $100 and $5,500; however, some financial institutions loan up to $10,000.
Possible Uses for Car Title Loans
OK, so now you have extra money burning a hole in your pocket. What do you use it for? There are an infinite number of ways to spend it, of course. A few things we recommend you spend it on are travel, home improvements, moving, weddings, and starting a new business.
If you’re brave enough to travel during these uncertain times, you can go just about anywhere for pretty cheap right now. Many people use credit cards for far-away vacations, but you can skip the hassle with a title loan. You’ll save yourself a boat load of interest by avoiding costly credit card interest accrual. And speaking of boats, why not book a cruise while you’re at it?
Many people wait for years to add that deck or remodel the kitchen. Start marking things off that mile-long honey-do list! A car title loan can make any home improvement project a reality in a matter of days. Often such improvements not only offer instant gratification, but can pay off big in terms of home resale value.
With the mortgage rates at an all-time low, it’s no wonder people are picking up and moving right and left. However, moving is expensive, and the money for it isn’t always there. A car title loan can get you over that hump and get the move on.
A parent never really knows when those wedding bells will ring in a hefty financial obligation. Others want a second wedding, since COVID threw a hitch into their first celebration, or a vow renewal (which you totally deserve if you survived months of quarantine with your spouse!). Everybody knows weddings can be very expensive, but a car title loan can let love have its way by funding a first-class wedding bash.
Starting a New Business
While it seems like a scary time to go at it on your own, depending on what you want your business to offer, starting a new company right now could be perfect timing. Of course, starting a new business requires capital and a line of credit. Even if you’re launching a service-based business, it can be very expensive. It’s tough to get started when you need tools and equipment, or anything else that entails a lot of up-front costs. A car title loan can go a long way in paying for some of these expenses and starting a line of credit.
Get Quick Cash from Select Title Loans in Florence, AL
If you’re a dreamer, you already have plenty of ideas for how you could spend a little extra cash. It could range anywhere from a new refrigerator to outfitting a personal gym. You can use a car title loan to make a major purchase where the money isn’t immediately available, or you can use it to cover any number of unexpected expenses. Get in touch with Select Title Loans today, and we’ll help you make your dream a reality.