Do you need emergency cash? An excellent arrangement comes in the form of car title loans Fresno, it’s undoubtedly the best option you can avail. If you own a car and you are ready to borrow money against it, then you can either opt for a loan or Line of credit. Both options are great and require you to own your car outright. When you approach this kind of loan, then the lender asks you whether you want a Line of credit or a loan. If LOC confuses you a bit, you should continue reading to know the difference and understand what options suit you the most.
What about a Car Title Loan?
It’s a secured short-term loan where you pledge your car title and borrow money. When it comes to evaluating your loan amount, the lender will consider your vehicle’s market value. The more value your car has, the higher the loan payment you can obtain from a lender. As soon as your loan application gets approved, you can access cash. In case of a title loan, a lender transfers all your loan amount into your bank account. When it comes to paying off your loan back, you can pay it in a lump sum amount after 30 days or opt for a loan installment option. Pick a loan repayment option based on your source of income and ability to pay. The cost of a lump sum payment will be lower than that of an installment option. You can use a personal loan calculator to ascertain the cost and exact value of this loan choice.
What About a Flexible Line of Credit?
The interesting thing is that a car title loan provider can also offer you a line of credit. It’s also a loan option that works exactly like a credit card advance. However, the main difference is that you get it after putting your car title as collateral. Once your loan gets approved, you will know about the limit of your car loan. Let’s suppose it is $1000, and you can access that loan either all at once or in small pieces like getting only $300 or $500. You don’t use all your amount at once. It’s like meeting your emergency cash needs once and then having peace of mind that if you need to handle any other expense, then the cash will be available; you won’t have to apply for title loans Fresno again. In simple words, this loan is precisely like getting access to your credit card. You have money in your account, and you can use it when or where you like.
Flexible Line of Credit vs. Title Loans
Now, if you want to know which option is better, it’s a personal choice. If you want a loan just once and have a plan to get rid of it after a month, then title loan Fresno seems like a great idea. However, a line of credit is a good option when you want to arrange funds for recurring expenses and don’t want to go through the hassle of traditional borrowing over and over again. When you are unsure about the exact amount of your emergency medical expenses or other bills, then you can be better ready to deal with your financial issues with a flexible line of credit, indeed.