Unemployed? Have You Considered a Car Title Loan?
February 7, 2012
Times are rough for many Americans. In fact, according to the Bureau of Labor Statistics, the most recent national unemployment rate is 8.5 percent. That’s nearly 3 percent higher than the historical average of 5.7 percent and just over 2 points below the historical high of 10.8 percent (source: Tradingeconomics.com). In other words, times are much harder now than they have been in the past.
If you find yourself among the nation’s unemployed, you may be frustrated with your job search. With a high amount of workers to choose from, employers can be very selective with whom they hire and offer lower wages, as well. Even if you are great at your profession, it’s often a world of who you know, not what you know, so you may have a difficult time finding a job. Thus, you may not know where to turn for money.
Traditional Sources of Income For the Unemployed
Unemployment compensation may help, but it is often just over half the amount of money that you earned at your previous job. This may not be enough to cover your expenses. If this is the case, you’ll either have to cut back on expenses or get more money. As you probably are not buying anything but the necessities at this time, chances are that you won’t be able to cut back much on expenses, so extra money will be needed.
A bank probably won’t lend you money if you are unemployed. They’ll figure that you are a high risk and will probably steer clear of you. This means that, unless you have enough savings to hold you over, you are going to have to turn to another source of money to hold you over.
Overview of Title Loans
A title loan is an option for those who are unemployed. This is because, unlike a bank, a title loan uses your vehicle as collateral. This means that the lender will use the value of your vehicle as a guarantee that it gets paid.
This is a reasonable deal. After all, wouldn’t you want some form of guarantee that you were going to get paid if you let someone borrow your money?
How Can I Get a Title Loan?
To get a car title loan, visit a lender who specializes in this field. To qualify, the only major thing that you’ll have to do is prove that you own the vehicle. Basically, you’ll just have to show them the title.
After that, they’ll run a brief income verification on you. You may think that this will kill your chances, but it won’t. Many title loan companies accept unemployment checks or other sources of income as sufficient proof of income, so bring any relevant documentation with you.
The title loan company usually won’t run a credit check, so that should not be an issue. You could have the worst credit on Earth or the best – it probably won’t matter.
Will I be Able to Pay a Title Loan Back?
Title loans are offered in terms of anywhere from 30 days to several years. At Car Cash Loans, they will offer you up to 5 years to pay the loan back and they do so at interest rates that are below the industry average. This means that, if you continue to have trouble finding employment, your monthly payments can be kept at a reasonable amount until you get back on your feet.
Finding a lender is not always easy, especially during tough times. If you are unemployed, a title loan will give you access to funds that many other sources will not. Consider a title loan if you need some extra money during your period of unemployment.