Most people will discourage you from taking out a title loan. This can be especially bothersome if you’re only looking to get an emergency cash loan to pay some urgent bills, for example. But just like with any line of credit, the important thing is to use it wisely. So in this article, we’re going to show you the five best tips on how to be smart with your title loan.
Why Should I Get A Title Loan?
A title loan is just another form of credit given to you against your car’s clean title. Unfortunately, many misguided consumers shy away from credit, thinking of it as predatory or unsafe. However, this couldn’t be farther from the truth!
The key to building excellent credit and opening up new opportunities depends on your ability to plan your credit spending responsibly, safely, and strategically. Building good credit and paying your bills on time is a great way of improving your credit score, for example. Therefore, there’s no reason to be afraid of credit! But it’s a good idea to learn about exactly what you’re doing. As the old saying goes, knowledge is power.
How To Be Smart With Your Title Loan
Here are some tips on what to do to be smart with your title loan. Using your title loan wisely is important, as it’ll increase the chances of paying back your loan successfully.
- Use The Money For Essentials First. Remember, you haven’t been given a bunch of money to spend freely. If you’re in a position where you need a title loan, you likely need cash for emergency purposes. That’s why it’s wise to pay off any pending bills that are necessary for your quality of life first and foremost. Rent, electricity, trash, utilities, and your phone bill all come first.
- Don’t Gamble With Your Money. You might be tempted to spend the money on frivolous purchases, like a scratch-off lotto or a night out on the town. It’s understandable to want to splurge on yourself to unwind, especially if life is stressful enough as it is. However, remember that you need to pay the loan back. You must only use the money for things you need it for.
- Be Frugal and Save. If you have money left over from your title loan, that’s a good thing. Save the money for as long as you can, and try to live as frugally as possible.
- Make A Budget. This is good practice, even if you haven’t taken a title loan out yet. Give every dollar a job, and don’t stop until every dollar you have is allocated towards a certain goal.
- Learn As Much As You Can. Your local community college or university campus will likely offer free classes on financial management, budgeting, and handling money. Please take the opportunity to learn about them while your title loan gives you a safety net and room to breathe.
Knowing that you can get a quick cash loan is a great relief, but ultimately, using it wisely is key. If you’re a responsible individual who aims to pay the loan off on time, it’s a good idea to speak to a reputable, professional title loan company. Don’t let a smart opportunity to get up and running go to waste.
At Advantage Financial LLC, we know how urgent it can be when you need quick cash. That’s why we’re ready to work with you for your car title loan. We’re a registered Credit Service Organization (CSO) with the Secretary of State of Texas. We also have the appropriate licensing and credentials with the Office of Consumer Credit Commissioner (OCCC). We have 13 years of experience serving the communities of Houston and the surrounding areas. Give us a call at (281) 410-5337, and we look forward to working with you.