Online, there are various loan options available for people to pick from. But, knowing the right one to pick from is often a hassle.
Google search engines and loan agencies have made it possible for people to know the types of loans out there with varying rates to compare.
When you type in Title loan near me, based on your location, you will see options. iPaydayLoans also makes it easy to get the one close to you because they will match you to good creditors.
So, this article will be covering the types of title loans available and alternatives to getting a title loan because there are several alternatives for you.
Types of Title Loans
Deciding to get a title loan is easy but knowing the types available for you to pick from on iPaydayLoans is essential. Creditors accept various vehicles as collateral, and some of the vehicles are:
This is the most typical vehicle accepted by creditors as collateral because cars are standard, which most people have, and it is seen as an asset.
Irrespective of the made or mod of your car, you can get a loan approval provided you have proof of ownership, and it is in good condition.
This is not left out from being used to get a loan, mainly the two-wheelers.
Borrowers have used sport utility vehicles to get loans. Initially, people were skeptical about the possibility of using SUVs as collateral, but it has become widespread recently.
Commonly known as RVs, it is not left out from being used to get loans. This vehicle is usually large, and some people live in it, especially when they decide to travel only with a backpack.
This vehicle is not left out from being used to obtain the loan. Trucks have varying sizes, which often influences the amount of loan you can get because most creditors refuse to give a loan higher than your vehicle’s worth.
Title Loans Alternative
You must know you have alternatives and options before choosing this loan. The downside of this loan is usually the short repayment time and the interest rate.
So, what are your alternatives?
1 Bank loans
People with bad credit ratings are skeptical about going to the bank for short-term loans because of the high rate of loan disapprovals that bank does.
Being in urgent need of cash often forces people to look for loans they can quickly get approval for without going through stress.
This is where people prefer title loans because their credit ratings are not considered. But, some banks still offer loans to individuals who don’t have a perfect credit score but can repay the loan when it is due because their vehicle is available as collateral.
Before getting a title loan, consider going to the bank because even when a bank gives high interest, theirs usually is better than title lenders.
2 Peer-to-Peer Loans
Banks don’t find this loan but various investors, and it makes it a good alternative for borrowers who needs to get access to a loan urgently. Their approval rate is quick, and you don’t need to endure much stress like traditional loan applications.
Once your application is approved, you get the money. Compared to most loans, this one gives a lower interest rate that borrowers need. Here, there is no maximum amount of money that one can borrow which sometimes makes people borrow more than they truly need.
3 Family and friends
People find it difficult to ask their family or friends to help them with the money they need because they don’t want to be mocked or want anything to sour the relationship.
Many friendships have gone wrong because the borrower refused to pay back a loan based on friendship. To put a person’s mind at rest, you can offer your vehicle as collateral.
When your friend or family member knows how they can get their money in a situation where you cannot repay, they will be willing to give the loan.
4 An extra job
Maybe getting a loan is not a solution to your problem but an extra income. If your 9 to 5 job is already too stressful, you can look for part-time jobs online that you can do on a freelance basis to get the extra income you need to solve your financial issues.
You may be lucky enough to get jobs that will pay you well enough to solve your money issues instead of getting a loan.
5 Payday Loans
An excellent alternative to title loans is getting a payday loan because here, you don’t need to use your vehicle as collateral for the loan.
Also, when you receive your next salary, you are sure to repay the loan. This loan can be easily gotten online from loan agencies like iPaydayLoans to take care of the debt.
However, to avoid falling into a debt cycle, you should get a loan that you can quickly repay with your salary, considering the interest rates of these loans.
6 Negotiate with your lender
Terms can be negotiated with your lender to give you the best option. Your rates, repayment plans, and fees for default in payment can be negotiated.
Before going for a title loan, know that you can negotiate the terms of your agreement for it to be favorable. Most lenders will try to make the terms favorable for you, so don’t be afraid of asking.
The wrong side of this loan is often more visible to people because it can make them fall into a debt cycle trap because of the short time needed to repay the loan.
iPaydayLoans gives you good options to choose from when it comes to getting different types of loans. Contacting them will make your loan application and approval process easier for you.