A cash loan can be a tool to consolidate debt, finance a home improvement project, or take care of your financial needs. To be approved for a cash loan, you must be old enough to make a financial decision as a legal adult. In the United States, an individual is considered a legal adult at the age of eighteen.
While cash loans can be a tool to get the cash you need, they come at a higher price than what you might expect to pay back. Cash loans are notorious for having high-interest rates that trap people into a debt cycle. Payday loans and other types of unsecured loans are typically considered cash loans.
If you are a young person seeking financial assistance, there are better loan options to consider if you are short on cash!
What is a Cash Loan?
Typically, cash loans are unsecured loans. If an unsecured loan has a high interest rate, it can be difficult to pay it back. Cash loans like payday loans may potentially also come with:
- Hidden Fees
- High Interest Rates
- Short Loan Terms
As a young adult with little to no credit history, one bad loan could affect a credit report significantly! This is not a good way to start off a credit report. Falling behind on a cash loan payments could significantly impact ability to get a loan in the future.
With the right loan, you’ll be able to receive a loan payment you can afford without the hidden fees.1 As a young person starting off in the world, you want to make financial decisions that can help your credit report and set you up for financial success. The right loan will help you establish a positive credit history!
What Other Alternative Cash Loan Options am I Old Enough to Apply for?
As a young adult, you may not have the established credit history you need to apply for traditional loans. Even your student loans may need to have a cosigner!
Other alternative cash loan options can help when you are in a bind. If you own a car, a car title loan may be the better option. To apply for a car title loan online, you will need to meet these initial requirements:
- 18 Years of Age or Older
- Have a Paid-Off or Close to Paid-Off Vehicle
- Have an Income or Ability to Repay the Loan
If you meet these easy requirements, chances are you may qualify for a car title loan!1 While you do not need a traditional 9-5 to apply for a title loan, you will need to have some form of income that proves you can afford a loan payment.
How Do Title Loans Work?
Title loans are a unique type of loan. If you have a vehicle in your name, a title loan can be the perfect way to get fast cash.1 Title loans work by a borrower using their vehicle’s title as collateral for a loan. This allows them to tap into their car’s equity and temporarily turn it into cash they can use!1
Unlike other types of traditional loans, car title loans do not have a complicated approval process. Since collateral is used to secure the loan, a title loan can be relatively easy to qualify for as a borrower with no credit history. Instead of relying on your credit history for loan approval, most title loan agents will take a look at your car’s value and your income. Your loan amount and eligibility for a loan will be dependent on those two factors!1
The use of collateral makes the loan secure, which offers a lot of benefits to you as a borrower.
Secured loans can offer you these advantages:
- Lower Interest Rates
- Larger Loan Amounts
- Even Those with Bad Credit Can Still Be Approved1
Why Should I Choose a Car Title Loan over a Cash Loan?
Cash loans like payday loans and other types of unsecured loans can be a fast way to obtain cash, but it can come at a significant price! As a young adult, choosing the right loan for your financial situation is crucial to starting off your credit history strong. If you are stuck between choosing a cash loan option and a title loan, there are a few financial factors to consider:
- Your Financial Future is at Stake: If you choose a loan option that has incredibly high interest rates, you may not be able to repay it, and your loan could end up in default. Payday loans are a cash loan option that is notorious for being very accessible to young borrowers, but tough to repay. A defaulted loan on your credit report could ruin it before you have a chance to build a positive credit history.
- Competitive Interest Rates: Competitive interest rates can help make your loan repayment experience easier! While high interest rates are often expected from cash loans, title loan options like ChoiceCash Title Loans can be different. Since title loans are secured loans, borrowers can expect to find more competitive interest rates that won’t break their wallets.1
- Fast Funding: Title loans can be just as fast as cash loans! Borrowers that choose to work with ChoiceCash Title Loans can get their funds in as little as one business day after loan approval.1 The approval process is easy and takes just minutes to do!1
- Flexible Loan Approval: Those from all types of financial and credit backgrounds may get approved for a title loan. Even if you are not confident with your new credit history, you may still be eligible for a title loan.1
What Can I Use My Title Loan Funding For?
Financial hardship can happen to anyone, for any reason. Even as a young adult, you may already be facing tough financial decisions you need help with! If you are trying to get yourself back on your feet financially, a cash title loan can be the answer.
Take a look at some of the most common ways a borrower may use their funds from a title loan:
- Funeral Costs
- Medical Bills
- Veterinarian Bills
- Home Repair and Maintenance
- Car Repair and Maintenance
- Getting out of Debt
- Emergency Travel Costs
- Unexpected Expenses
While not every person has the same financial situation, a car title loan can cover a variety of financial emergencies! If an unexpected expense pops up or a bill is too much to handle, a title loan may be the perfect solution to your financial woes.
Where Can I Apply for a Cash Loan Like a Title Loan?
Choosing the right loan as a young adult is important. Even if you were searching for a cash loan, you may have found that a title loan is the right solution for you!
Applying for a title loan online can take just a few minutes of your time.1 If you work with loan options like ChoiceCash Title Loans, the approval process is convenient and easy.1
You can expect a simple, three-step process online:
- Submit a Loan Inquiry Online, or Over the Phone
- Send in a Few Documents and Paperwork to Verify Your Information
- Get Approved and Get Your Cash!
Applying for a cash loan online shouldn’t be complicated! In just a few minutes you can receive a free title loan quote with ChoiceCash Title Loans.1 Get started on your loan today by heading over to the website, or by calling a loan agent at 855-422-7402.