man facing an auto emergency and in need of a line of credit

 Using A Line Of Credit To Help With An Auto Emergency 

At Tennessee Title Loans, Inc., many clients take out one of our short-term loans because they have an emergency car repair. Depending on the issue, vehicle repairs can be expensive and usually out of one’s monthly budget.

When you have emergencies like this or have a time-sensitive financial obligation, one popular way to get fast cash is through a line of credit. It works similarly to a credit card wherein there is a defined amount of money that you can use however you like, then repay it immediately or over time.

Let’s learn about lines of credit - what they are, how they work, the different types, and their benefits. Let’s begin!

How Can A Line Of Credit Help With An Auto Emergency?

What Is A Line Of Credit, And How Does It Work?

Also called a flexible or flex loan, a line of credit (LOC) loan is a type of lending wherein the borrower can set their credit limit and borrow as little or as much money as they need as long as they don’t exceed the set credit limit. Once the borrowers repay the money, they can borrow funds again. 

As with any loan, using a LOC comes with interest. But unlike most personal loans, the interest rate on an LOC isn’t fixed - it changes as broader interest rates change. When applying for a line of credit, the financial institution (usually a bank or a loan company) will consider factors including your credit history, credit score, and income.

woman faces an auto emergency and calls for a line of credit

There are various types of LOCs, the most common of which are personal, business, and home equity (HELOC). Other types include:

  • Demand Line of Credit
  • Securities-Backed Line of Credit (SBLOC)
  • Limitations of Lines of Credit

LOCs are less common than credit cards, although they are considered generally lower-risk.

What Are The Benefits Of Using A Line Of Credit For A Car Repair?

Lines of credit can be a valuable financial tool, mainly when used responsibly. It’s an excellent option for covering auto emergencies and other urgent expenses. The following are some advantages of using an LOC for an emergency car repair:

  • Flexible Access. One of the most significant advantages of LOCs is having flexible access to money. You can take out money whenever needed if you stay within the limit. Depending on the car repair cost, you can borrow only the necessary amount to avoid debt. Once repaid, the money becomes available for borrowing again.
  • Quick Access to Cash. When you have an auto emergency, you won’t have time to go through a traditional loan's lengthy and complicated processes. With an LOC, the process is quick, and you can immediately access the much-needed money.
  • No Interest Until Used. Unlike traditional loans, where interest rates immediately apply when you receive the money, with an LOC, you only pay for the interest you borrow. No fees will apply if you don’t use the credit.
  • Convenient Repayment Terms. LOCs typically offer repayment options, and the borrower controls how the borrowed money will be repaid. Depending on your convenience, you can return the funds immediately or over some time.
  • Peace of Mind. Having a line of credit means having access to cash when you need it the most, giving you peace of mind. You’ll have funds to cover unexpected expenses like a car repair - if you have an LOC, you’re prepared for emergencies financially!

Submit An Inquiry About Our Line Of Credit Today!

Getting a line of credit loan from us at Tennessee Title Loans, Inc. is easy. We accommodate all types of income; we don’t look at credit scores, you get your money fast, and you get to keep your vehicle!

When you start an LOC with us, we will use your vehicle's title as collateral. It will be immediately returned to you once the amount you borrowed is paid. We also only have a few requirements: your driver’s license, proof of income, a lien-free title of your vehicle, and your car for inspection.

woman with cash

Interested in starting the process? Here’s all you have to do:

  1. Fill out a quick online form that can be found here on our website. Once submitted, your nearest store will be notified, and one of our representatives will call you.
  2. The representative will verify your details and schedule the vehicle inspection according to the time and place of your choosing. Don’t forget to bring the required documents to the meeting!
  3. After the inspection, the representative will determine if you qualify for a loan or the loan amount you are eligible for. 
  4. If approved, sign some papers and get the money immediately.

Having an auto emergency can be frustrating because car repairs are expensive. If the repairs are out of your budget, consider getting a line of credit to cover the expenses - you’ll get the money quickly without the hassle! If you're facing a financial emergency, consider getting a line of credit loan today.


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

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.