Published on November 30th, 2020 | by Sumit Bhowal0
How Students Can Benefit from Alternative Financing
The COVID-19 has hit us all differently, but very few Americans have escaped financial strain. Students make up one of the most heavily impacted populations, but there are a few key resources available for those who have been affected.
Alternative financing options like title loans and online lending can be a fast, efficient solution for students who have experienced an unexpected bill or expense.
Here are a few key ways students can take advantage of obtaining an alternative line of payment in 2020.
Benefits of Auto Title Loans
While many students don’t have a residential property in their names, a large percentage of current students have a care of their own. If you own a vehicle outright, you could be eligible for a loan that uses the value of your car as collateral.
If your vehicle has a substantial resale value, you could be eligible for a loan of a few thousand dollars. Plus, this method won’t disrupt other aspects of the borrower’s daily life because they can retain use of their car.
As long as the borrower says within the repayment plan they set with the title lender, they can continue to drive their vehicle cash in hand.
How to Apply Online
It’s easier than ever to get fast cash from home, and online lenders are all over the marketplace. Online instant rate calculators and estimation tools provide prospective borrowers with an accurate, pre-qualify auto loan quote.
Many students attend school in a state outside of where they grew up. Applying for a loan online and receiving the funds electronically solves any barriers caused by location dependence, on either side of the transaction.
Even students who are continuing classes online have to juggle unpredictable, busy schedules. Easily applying online takes just a few minutes, and can be done from any internet-connected device.
No Credit History Needed
One of the primary benefits of this form of alternative financing is the elimination of credit checks as application criteria. Students with new credit histories are often not required to have a cosigner, and they can take out a loan with their own collateral.
Title lenders typically only require information regarding the borrower’s identity and vehicle details to determine eligibility.
Private Loans for Students
Another popular form of alternative financing for students is going through a private lender. Private student loans can be beneficial for students who don’t have co-signers, and are helpful tools for individuals who might be struggling with:
- Temporary housing insecurity
- Change in employment
- Change in student status
- Medical emergencies
Federal aid doesn’t always cover the entirety of a student’s expenses, so private loans can help to bridge any gaps in existing income.
To find out if you qualify for a private loan, contact your local bank or financial institution to ask about their respective eligibility requirements.
Students who are struggling financially during this time are juggling enough hardships without worrying about an unexpected emergency. For those needing fast cash without a reputable credit history or home collateral, auto title loans are a sound alternative option.