Over the years online title loans have become an incredibly popular financial tool, and the reason is simply and easy to see: they give ordinary Americans access to a reserve of cash that they otherwise wouldn’t have. It’s a reserve of cash that can make all the difference in turning your life around, if you use it correctly.

Now, title loans shouldn’t be used to pay your debts, but there are a hundred and one other ways that title loans can be spent. They fall into three primary categories: emergency relief, prevention, and investment. Today we’re going to walk through a few of them.

The Basics

Before we get to the concrete ways title loans can be used, it’s worth taking a minute to understand the basics of online title loans.

• First, title loans are fast. Very, very fast compared to traditional loans. Not only can the process be started online (one reason they’re often called ‘online title loans’), but once you step into a title loan store it can be as little as a half hour before you’re stepping out again, this time with the cash you need in hand.
• Second, title loans as a whole tend to be more accepting of various forms of credit compared to traditional loans. Because your loan is secured by the value of your vehicle, credit score is of less supreme importance than it would be for a traditional loan.
• Thirdly, you get to continue driving your car as normal for the duration of your loan. It’s a common misconception that to take up a title loan you have to give up your car, but the truth is that for the duration of your loan you can drive to and fro from work to home and anywhere else you would normally go.

The Big 3

Now that we understand a little more about online title loans it’s time to dive into the meat: the three main categories they’re used for.

• Emergency relief. Emergencies are high stress events that strike like a thunderbolt, and the last thing you need to be worried about during one is where you’re going to get the money to deal with it. Studies show a majority of Americans don’t have enough savings to handle a $400 expense without going into debt, which just underlines the need for a cash reserve to have access to when needed.
• Prevention. What’s better than cash in an emergency? Never having an emergency in the first place. Ironically the best way to achieve that is with a little cash. Often problems can be nipped in the bud early to avoid them becoming full blown emergencies in the future. For example, having the money for regular dental cleanings can avoid the cost of a cavity or even root canal in the future.
• Investment. Despite the interest rate, sometimes the ability to invest is truly incalculable. Whether it’s real estate, stocks, or even just education, investing in your future can be hugely profitable and well worth taking out an online title loan.

Before the Title Loan

Before you take out a title loan, there’s a few key steps you should follow to make sure you have a fulfilling experience.

• Before you take out any kind of loan, you should be intimately aware of your financial landscape: how much do you make? How much do you spend? Does it change throughout the year? Are there any upcoming repairs your house or car may need? These are all important questions you should have answered before you take out a loan.
• How long will it take you to pay back the title loan? This is an important question to answer because it will help you understand the steps you’ll need to take to pay back your title loan in a timely manner. Neither party wants you to pay more than you have to, and having a concrete payment plan is key to a successful title loan experience.
• You should have an idea of how much your car is worth. While it’s impossible to know exactly how much your car will be appraised for at a title loan store, you can get a rough idea of how much you can expect by knowing the value of your car. The best way to do this is to consult and online guide like The Kelley Blue Book where you’ll input the make, model, and condition of your car to see how much similar cars are selling for in your area.