Many Americans, especially Uthans, are allergic to title loans. Relatively high interest is attached to these financial products, so it’s understandable why some individuals shun them as much as possible.
Technically, though, a debt only becomes bad when you use it to buy depreciating assets, such as a car or clothes. If you use the funds responsibly, you can find a title loan a powerful tool to achieve your financial goals.
Below are the usual ways shrewd borrowers use title loans in Provo, Taylorsville, and Sandy:
Paying Time-sensitive Bills
We all know that missed payments can drive credit scores lower. Your payment history accounts for 35% of your FICO score while credit utilization represents 30%. Being late with your payments doesn’t reduce your debts, so you’ll be hit with a double whammy.
A title loan allows you to borrow as much as 75% of the value of your vehicle. If you’re behind on your mortgage repayment and your next bill is due soon, the money you can get from a secured loan can help you avoid foreclosure.
The same concept applies to a near-delinquent auto loan payment. If a bank has a lien on your vehicle, using its title as collateral to get money to retain its possession is practical and ingenious.
If your vehicle is valuable enough, you can even receive adequate funds to consolidate your credit card debts.
Aside from settling other debts, you can also use the instant cash that you obtain from a title loan to pay your utilities. It’s imperative to do everything to prevent your electricity and heating from getting shut off.
Making Timely Investments
When it comes to investment, timing is everything. If you need to be more liquid now to buy a particular stock or other valuable commodities, a title loan can be Heaven-sent.
The price of some investments, such as gold and silver, can fluctuate overnight. Waiting for your next paycheck may cost you a golden opportunity to increase your wealth. If your gut tells you to invest sooner rather than later, strongly consider a title loan to have the funds you need.
Get Your Broken Vehicle Repaired
When a car breakdown catches you unprepared, taking on debt through a title loan can help you get your vehicle fixed. Without efficient public transport options in your area, this loan allows you to continue commuting to work conveniently and to avoid losing your job.
Title loans also aren’t exclusive to cars. You can likewise use an all-terrain vehicle, a truck, a motorcycle, or a snowmobile. If you’re planning to sell your old, broken vehicle, obtain a title loan if you think you can make more money by repairing it first.
Title loans are only scary to those who don’t understand how and when to use them properly. With financial savvy, common sense, and prudence, you can make the most out of these secured loans.