Let’s be honest, nobody takes out a car title loan for home improvement reasons. While some borrowers will treat the personal loan like an investment, when it comes to the shorter term finance options the uses are condensed.
Of course, nobody is going to tell you where your money should be going – that’s not the point of this article. What we’re instead trying to concentrate on is uses for the car title loan that play to its strengths.
If you can understand this before you take the deal out, the chances of running into trouble are severely minimised. Here we’ll take at things you should use the car title loan for, and those things that you shouldn’t…
Do: The Emergency Purchase
Whether it’s the boiler breaking down in the middle of winter, or the water bill coming in at a much higher rate than you expected, every single family on the planet will be hit by such an emergency eventually.
This is one occasion where the car title loan can work wonders. Such expenses are not going to cripple you for the long-term, but they are difficult to negotiate before the next payday comes around. As such, if you apply today and take out a short-term option such as the title loan you will be covered, and it will be manageable.
Don’t: The Family Holiday
We’ve plucked out the family holiday example, but in reality it could be anything that carries luxury. The main reason why the press are spitting feathers about short term finance options is because a lot of customers are turning to them in a bid to use them for unnecessary expenses.
The general rule is if you know that your standard income isn’t going to cover your big purchase (in this case the holiday), then don’t rely on the title loan to help you out.