Loans are best given to people with assets. The most common asset we can usually imagine is a steady paycheck. An individual working a steady job at a steady wage is going to be able to pay off a loan at a predictable rate. They are therefore trustworthy, depending on how much they make and how much debt they are currently in.
Unfortunately, people barely making ends meet are struggling financially to make any kinds of improvements in their lives. They often don’t fall in the category of “financially stable” individuals and therefore don’t qualify for a lot of loans. Why? They don’t have a significant enough common asset that they can use as a bargaining chip. Consequently, they are denied the loan and the opportunity to improve their circumstances. There is another type of loan that a lot of people forget about which those with cars have a better chance of getting.
Your car is just as viable an asset as your paycheck. If you have a car that’s fully paid off, the title to that car is usually worth several thousand dollars. You can temporarily exchange the title of your car for real money that you can pay off over time. The loan is significantly cheaper than the ones needed to buy a vehicle or a house, but they are large enough to make a significant difference. Because they are smaller, they are easier to pay off with your current pay check, making it easy to get the title to your car back.
Don’t be discouraged by the traditional asset approach to getting loans. There are other options out there for you. Drop into a Check City location today to talk about your title loan options. If you need the money, this is an option you should consider.