The Great Recession left many Americans with low credit and a depleted bank account. When the unexpected occurs and you need money to afford a financial emergency, where can you turn? Unfortunately, getting a traditional bank loan when you have bad credit can be a nearly impossible feat. Banks want to assume as little risk as possible when they approve a loan, and potential borrowers with low credit scores are seen as high-risk candidates.
So what should you do if you need fast cash, but do not have the credit necessary to get a mainstream loan or do not have access to other borrowing options? That's where flex loans come into play. A flex loan is similar to a line of credit with a $3,000 maximum cap and long-term installment payments. Most consumers who take out a flex loan pay in full within a few months time and the average loan is approximately $1,000.
Flex loans fill a void in the lending market of many states. The money can help working families not served by banks make ends meet. For example, banks typically do not make smaller dollar loans and they are hesitant or often refuse lending to individuals with low credit scores.
A flex loan can be used for a wide variety of purposes, include everyday expenses such as car repairs, medical bills, or urgent home renovations. Consumers who are often ignored now have a chance to boost their bank account and prepare for the unexpected. Plus, a flex loan can improve or rebuild a borrower's credit score by demonstrating a record of good payments.
Flex Loans vs. Other Lending Options
Flex loans are not the only legal loan option for consumers with bad credit. You can always head to a pawn shop and put your fine jewelry or TV down as collateral. Or you can temporarily turn over your auto title for a title loan. Although these options are ideal for borrowers with available collateral, what about the scores of borrowers who do not own a car or other valuable asset to pawn?
Flex loans provide an opportunity for a segment of the population with limited options to get an unsecured amount of money in a short period of time. You won't need to rely on the equity in your vehicle or other property item to get quick cash. Instead, you can get up to a $3,000 line of credit regardless of what you own or what your credit report looks like.
The gap in the system can be filled with flex loans, because there is no need to jump through hoops or hand over an asset in exchange for cash. Car title loans, pawn loans, and pay day loans are great for individuals with collateral and a steady income, but flex loans are the solution for those who currently have no available options. Plus, if loans are made available to a larger number of people throughout the country, the economy of participating states would receive a significant boost and employment throughout the lending industry would increase.
What to Do If You Need Fast Cash
Currently, EZ Car Title Loans does not offer flex loans, but we do provide our customers with another high-quality opportunity to get money in a quick and easy manner in the interim. If you own your vehicle and the title is in your name, you can use the equity to finance a secure loan in the form of title and registration loans. You can benefit from filling out the application on the side of this page and we will send you a pre-approval quote absolutely free.
Since you don't need to jump through hoops or fulfill a long list of requirements, most customers drive off with their funded loan within as little as 24 hours. As mentioned before, unplanned expenses can occur when you least expect them, so we give you the opportunity to react at a speedy pace.
You will need to temporarily hand over your title/registration while you make payments, but you can continue driving your car the entire time. A lender will return your proof of ownership as soon as you have paid in full. If you need money on a moment's notice, but you do not want to change your day-to-day routine, a fast cash loan is the ideal solution.
Depending on where you live, you may or may not have access to flex loans. However, legislation is currently pending in several states, so it may only be a matter of time before you can take out a modest line of credit to afford life's most unexpected costs. If flex loans are not currently offered, there are other great ways to keep life moving forward.