When you need some money fast for an emergency or unexpected expense, you could take an auto title loan if you own your vehicle free and clear. And if your vehicle has enough value to secure the amount you need. But what if you don’t have a clear title? Or is your vehicle an older or low-value model? You may not be able to get a loan with your vehicle, but there are alternatives to auto title loans in Arizona.
1 – Borrow from Friends or Family
To get money quickly when you are low on funds, you may consider asking friends or family members. They may be understanding and care about you enough to loan you the money. They are more likely than commercial lenders to give you favorable (or zero) interest rates and repayment terms. You’ll want to safeguard your relationships when borrowing and repaying money by keeping your word about your loan agreement and expressing gratitude for the assistance.
2 – Personal Loans
If you can’t (or don’t want to) get a loan from friends or family, a personal loan may be a good alternative. Personal loans from banks, credit unions, or online lenders are unsecured loans that are lower than title loans. You can usually get them quickly, the same day they are approved. Rates depend on your credit, with poorer credit meaning higher rates. Length to repay and monthly payment amounts will also be more favorable than title loans.
3 – Credit Cards
If you have a credit card with a substantial enough credit limit, you may consider using it for your short-term unexpected expense. If you can’t repay the borrowed amount in 30 days, you’ll accrue interest at a lower rate than a title loan. Repaying the balance within 30 days means an interest-free loan. However, you’ll want to be careful with credit cards, as how you handle repayment will affect your credit limit and rating.
4 – Payday Alternative Loans
You could consider a payday alternative loan from a federal credit union for small-dollar loans. They offer friendly repayment terms with capped interest rates. Unlike title loans, payday alternative loans don’t require collateral. And credit unions are typically willing to work with their member borrowers with poorer credit. You’ll have to be a member of the credit union to benefit from their services.
5 – 401k Loans
If you have a 401k retirement plan with a substantial enough amount, you may be able to take a loan from your plan. Retirement plans allow hardship loans for extreme situations, but many also allow loans for varying amounts borrowers repay through payroll deductions. You borrow money and repay it to your 401k account, paying the interest to your fund rather than a bank or other lender.
Regardless of your financial picture, an auto title loan or personal loan are a good option for those looking for fast cash. At My Tio Rico we offer loan approval in 30 minutes or less, flexible payment plans (bi-weekly, semi-monthly, or monthly) and no insurance required in most cases. Learn more or contact us today in you’re in the greater Phoenix area.