Cheaper Ways to Raise Money Instead Of Getting a Car Title Loan

Also known as, pink slip loans, car title loans are some of the easiest loans to get. This kind of loan only requires your vehicle as collateral against your dept. The amount of money you get from a title loan highly depends on the value of your car. Most lenders cap that value at about half and offer you the money. The interest rates associated with a title loan are basically a lot higher compared to traditional bank loans.

In order for you to qualify, the title of the car should be lien-free and it should have your full name on it to prove that it belongs to you. You should also show a valid identification, proof of insurance, proof of residency, vehicle registration, as well as proof of income. Some lenders will have a GPS tracking device installed on your car if they allow you to keep it, while others could ask for keys to it. If you have been thinking of getting a car title loan, here are some better ways for you to raise money before you resort to it.

Get a short-term bank loan

Before you agree and commit yourself to triple-digit interest rates, which usually come with car loans, you should exhaust all other loan options. Given the fact that you already have a car and a source of income, you should try getting a short-term loan from a local credit union or bank. Even the most expensive local bank loan will be cheaper compared to a car title loan. Banks also make collateral loans and you might be able to get a better deal with your car than with a car title loan Miami lender.

Get an advance on your credit card

Cash advances are usually so expensive, but the interest rates don't go as high as car loans. As a borrower with certainty of paying the loan within a few weeks or months, you might be able to access money less expensively. The only problem with a cash advance is that the balance could take time to pay off and eventually the interest charges will pile up on you. If you decide to take a cash advance, be very committed to pay for it in the short-term.

Look for a peer-to-peer loan

Peer-to-peer loans are usually funded by investors, and not necessarily banks and they get approved much faster than bank loans. Even though you might have poor credit, the minimum loan you could get could be higher than the minimum car title loan you might qualify for.

Ask for a loan from family or Friends

Family members might be willing to offer you a loan in case you have an emergency. A loan from a family member even with interest is so much better than a car title loan. Actually, you can offer your car as collateral to your family member or friend if it makes them feel more comfortable about giving it to you. The benefit of doing this is that the interest rate will not hike as much as it could with a lender. You might be able to get a more reasonable agreement.

Rahul is a renowned author and social media enthusiast.