Title loans are short-term loans that allow you to borrow up to $15,000 without a good credit score. Using your vehicle to determine your borrowing limit reduces the need for an almost perfect credit rating. They can help you cover emergency expenses you cannot afford.

This guide from Fast Auto Loans, Inc. explains how borrowers utilize title loans. We cover financial emergencies you can handle with a title loan and how to avoid needing to borrow again by managing your finances wisely.

5 Main Reasons People Use Title Loans

Economic emergencies can happen when you least expect them. You might have just used your paycheck to cover rent, but now you need to pay for a broken air conditioning unit. Waiting two weeks for your next paycheck probably isn’t an option, so you need to borrow money quickly.

You can get a title loan for emergency expenses in less than 24 hours. The process is simple and lets you receive up to $15,000 quickly to cover costs before experiencing service interruptions, lowered credit, or late fees.

The following are five financial emergencies you can afford with a title loan:

1. Home Repairs

Your home is your most expensive asset. When something goes wrong, it usually puts a huge strain on your bank account. Therefore, people often seek title loans to deal with unexpected extra expenses.

The most common emergency home repairs title loans can cover include:

• Roof leaks — Arguably one of the biggest expenses homeowners deal with, leaky roofs become expensive fast and require immediate attention. Even small leaks can cost between $300 and $1,500, while complete replacements can see you charged from $15,000 to $35,000.
• HVAC system repairs — Minor HVAC repairs cost $100 to $500. However, significant problems can cost you between $1,000 and $5,500 — and even more in some circumstances.
• Electrical outages — An electricity surge can be fixed with cheap new fuses, but the damage it causes to equipment throughout your home can be pricey.
• Plumbing leaks — Burst pipes, leaking faucets, and everything in between can cause property damage or mold. Since it's important to remedy the problem quickly, it can be an expensive repair. While minor repairs are relatively low-cost (between $100 and $200), more significant repairs can run to $2,500.

2. Medical Bills

Medical bills are often very high, even with health insurance. Some plans don't cover the full cost of treatment, and others exclude certain treatments altogether. As a result, people turn to title loans to help manage their expenses.

You shouldn’t avoid getting the emergency help you need because you can’t afford it. A title loan can free you up financially to get medical help.

Here are some of the medical expenses you can pay with a title loan:

• Medication
• Hospitalization and ambulatory costs
• Physical therapy
• Surgery
• Drug rehabilitation

3. Missed Rent or Utility Payments

Approximately 14% of renters faced a late fee for missing rent payments each month from September 2021 to November 2024. Missing rent is common: other expenses can add up, rent might increase, or you could miss work due to illness or injury.

These same reasons can also cause you to miss utility payments, which can lead to disruptions in your air conditioning, hot water, internet, or other essential services. Borrowers who miss multiple months of rent may also face eviction.

If you cannot afford your rent, a title loan can help. You can borrow against the value of your vehicle and cover your rent and utility bills for a month while you rebuild your finances.

4. Unexpected Travel Costs

If you live in a different state from your family members, situations may occur where you need to visit them unexpectedly. They might have suffered an injury or illness, or you may need to travel for a funeral in the worst-case scenario.

Having to pay for a trip on short notice can be difficult because you need to cover a plane or train ticket, a hotel, a rental car, and meals. This can add up to over $1,000, which most people don’t have just sitting around.

Title loans let you borrow money within one business day to cover unexpected travel expenses. Traveling to see family for an emergency is stressful enough without worrying about money. Let Fast Auto Loans, Inc. assist with our Arizona title loans.

5. Auto Repairs

Unless you live somewhere with good public transportation, you probably depend on your vehicle to get around. If your car or truck needs repairs, it can be hard to get to work, which can impact your ability to earn money. Even small repairs can turn into big problems if you ignore them. This can put you and others on the road at risk.

Covering auto repairs on short notice can be difficult, as they may cost thousands. However, a title loan can help you pay for these repairs and stay safe on the road.

Title loans can help you pay for the following auto repairs:

• Oil changes
• Tire rotation
• Electrical system troubleshooting
• Replacing a car battery or spark plug
• Cleaning fuel injectors
• Fixing a blown fuse

How Can You Avoid Repeat Borrowing?

Whatever your reason for seeking a title loan, understanding that it should be used only for one-time situations is crucial. You need to reach a point where you can handle a financial emergency. That can only happen by making smart financial choices, reducing spending, and building up your savings. 

Here are a few tips and tricks for improving your long-term financial health:

• Build an emergency fund — An emergency fund is a buffer that ensures you can cover emergencies without missing regular bill payments or relying on borrowing. Experts suggest saving between three and six months' worth of living expenses for the best results.
• Make saving a habit — Develop a plan that helps you be consistent with your savings. This could be anything from saving a dollar a day to joining one of the viral savings challenges.
• Prioritize needs over wants — Focusing on your basic needs before desires is key to improving your financial health. You should never borrow for non-essential expenses, so separating all spending can boost your self-control when deciding whether to get a loan (title loan or otherwise).

How To Get A Title Loan For Emergency Expenses

While the ultimate goal is to avoid repeat borrowing, sometimes life has unforeseen plans for us, necessitating the one-off use of a title loan. If you're struggling to afford a financial emergency, you need to know exactly how to acquire a title loan in a timely manner.

First off, you will need the required items for title loans in Arizona: a driver’s license, a lien-free car title in your name, and a vehicle for an inspection. You must have fully paid off your vehicle to get approved. Your loan amount will depend on your car’s value. If you have all of these items, you can get started online today.

Here is the approval process for title loans:

1. Fill out the form found on this website. Since we also offer registration loans, ensure you're completing the correct form before submitting to avoid any delays.
2. Wait for one of our loan representatives to give you a call. They'll check your details, ensure you understand the requirements, and answer any questions. They will also set up a meeting location for the in-person portion of the process. This meeting has to happen at one of our Arizona store locations.
3. Bring the necessary items to the in-person meeting. We will review your documents to confirm your details match and that you are at least 18 years old to qualify for a title loan. We'll also inspect your vehicle to assess its value, which will help us determine how much you can borrow. We consider several factors to estimate its worth, including its age, make and model, service history, odometer reading, and condition.
4. If you are happy with the amount we can offer you ($300 to $15,000), we'll show you where to sign the paperwork to confirm your agreement. We'll ensure you understand everything before asking for your signature. You'll receive the amount you qualified for the same day or the next business day.

Get A Title Loan In Arizona – Borrow Up To $15,000 Today!

When emergency expenses come up, Fast Auto Loans, Inc. can assist with our title loans. Apply online and get approved the same day. You can qualify for title loans with bad credit and still keep your car. Get started today – fill out our loan form online and visit one of our Arizona stores for approval in less than 30 minutes!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.