Homeowners often include mortgage, taxes, and insurance in their budget. But many overlook an inevitable household expense such as home-related repairs or replacements.
Home systems and appliances don’t last forever. Over time, they can break down from everyday wear and tear. And when that happens with a major system, the cost of repairs can be expensive. It helps to have an emergency fund so you’re not dipping into your savings.
While traditional loans can help you cover the expenses, lenders may hesitate to grant you a short-term loan or line of credit if you have a bad credit score.
Taking out a car title loan can, on the other hand, can help you get your hands on fast cash with minimal income verification and no credit checks.
The Stress of Surprise Repairs for First-time Homeowners
Unexpected home repairs or improvements can be stressful if you’re a first-time homebuyer. On top of worrying about the cost of buying a home, moving expenses, and covering closing costs, you need to set aside a budget for an emergency repair.
A NerdWallet survey on 2,000 U.S. homeowners reveals that 44 percent experienced a home repair during their first year of ownership.
More surprisingly, 12 percent had to deal with a home replacement a month into moving in. And 31 percent share that they did not have the emergency funding to cover for surprise repairs.
It’s a good idea to have a backup plan and determine how to pay off the expense when the unexpected happens.
If you’re dealing with major home system repairs, a car title loan can help you as long as you have enough equity in the vehicle.
Saving Grace for Strapped-for-Cash Borrowers
If you take your jewelry or other valuables to a pawn shop, the person behind the counter appraises your items. Then, they lend you money and charge interest.
If you fail to pay back the money within the expected timeframe, you risk forfeiting your items.
Car title loans work in the same way. You’ll need to hand over your car as collateral by handing over the title until you completely repay your loan.
The amount lent depends on the value of your car and the equity of your vehicle. As an equity-based lending solution, you can relieve yourself of the financial cost of your home’s repairs.
Get instant funding without the hassle of paperwork, months of pending approvals, and probable denial of your loan request from traditional lenders.
Avoiding Unnecessary Pitfalls
Car title loans do provide immediate funding, and they may be your ideal alternative to traditional loans. But it still pays to approach the decision with care to ensure that it’s the right one for you:
- Save time and money by applying online.
- Choose a car title loan without any early repayment penalties.
- Keep your loan outstanding for the shortest time possible to avoid paying more each month.
- While your lender possesses the title of your vehicle, make sure you still get to keep driving your car.
- Before taking out a loan, find out what kind of cars your lender accepts. Some might have mileage restrictions, for instance.
Let VIP Finance of Texas help you shoulder the expenses of your home-related repairs and replacements. We offer 6% APR and loan durations of up to 12 months.
Contact us or visit us at one of our locations today.