3 Great Alternatives to an RV Title Loan

  1. RVSign
  2. January 10, 2014 11:03 pm

3 Great Alternatives to an RV Title Loan

Although an RV title loan may seem like a great idea when you are in a bind, they might not be your best option. Title loans are very risky and will require you to pledge your RV as collateral.  If you are unable to pay the loan for any reason, you may lose ownership of your RV and get stuck with additional fees or credit penalties. Before going down this road, here are some alternatives to RV title loans:

Renting Your RV

Renting your RV on a long – or short-term basis can be a great alternative to RV title loans. This option allows you the flexibility to set terms and rates that suit your individual needs. You can easily find potential renters by using online classified ads and the local newspaper. In order to protect your investment, you may want to draft up a contract for the renter to sign. This could be a simple document that outlines the terms of the agreement.  Should the renter fail to comply with the terms, or should any confusion arise, the document could quickly smooth over the disagreement. Renting your RV is a smart way to leverage your vehicle to pay off a debt or make additional income. If you already have an existing RV title loan, renting your vehicle out can provide you with a quick way to repay the loan.

Using a Credit Card

Using a credit card is another alternative to RV title loans. If you already have a credit card, but your limit exceeds the amount that you need, consider calling your financial institution and requesting an increase to your credit limit. In cases where you do not have a credit card, a few hours of online research can help you choose one that matches your unique needs. The primary benefit of using a credit card is that they often have lower interest rates than title loans.

Borrowing from a Bank

Borrowing from a bank is a great alternative to RV title loans. In most cases, borrowing from a bank may get you lower interest rates than a title loan or credit card. You can pay back the amount that you owe in neat, monthly installments that suit your needs and lifestyle. Before extending you a loan, banks will evaluate your credit worthiness. If your credit has a few scars, a local credit union may be more likely to work with you.

Taking out an RV title loan should always be a last option. While this method does give you access to quick cash, title loans also involve a lot of risk. These 3 alternatives can help you keep your RV and handle your short-term financial hardship.

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