Use A Car As Collateral For A Loan
Car collateral loans are easier to get approved for than most people think, and it doesn’t take long to qualify if you have sufficient equity in your car or SUV. It turns out that these loans are pretty popular, as it’s become more difficult to get emergency cash unless you have some form of equity or security backing up the loan amount.
Borrowers have turned to collateral loans for decades, and not just your car or truck can be used when applying for car title loans completely online. Think about how often people tap into their home’s equity to get money, and you’ll realize the potential for a loan using your car’s title.
Turn to Highway Title Loans to learn more about how a vehicle collateral loan can help you address a short term cash crunch. We work with customers throughout the United States, and most can be approved and funded in one or two business days.
How Do Car Collateral Loans Work & How To Get One
Collateral loans are ideal for borrowers turned down for personal loans because of poor credit. Instead of checking your credit history, a loan underwriter wants to see how much equity your vehicle has. This makes borrowing $3,000 or more possible, as lenders know there’s equity or “security” backing the amount they lend.
To qualify for an instant car collateral loan, your vehicle must be paid off, and the title must be in your name. You need to show proof of income from your bank or employer, and some companies will want to see valid registration and insurance documents from the DMV. The title loan value of the car will determine the loan amount, with most lenders offering up to 50-70% of its equity value.
Why Choose A Loan With A Car As Collateral
As for why someone would opt for a car collateral loan, it’s often pretty straightforward. Many applicants have already been rejected for payday or bank loans because of their bad FICO scores. So, instead, they use the equity in their car to get emergency cash.
Before getting a car collateral loan, you should research and ensure you fully understand all terms and conditions and thoroughly read through the contract and state laws regarding title collateral loans in your state. Also, make sure only to borrow what you can afford to pay back and always make your payments on time to avoid losing your car or further damaging your credit. Overall, a loan with a car as security can provide quick access to funds for those who otherwise may not qualify for traditional loans. Still, being responsible and familiarizing yourself with the terms before taking out the loan is essential.
Different Types Of Collateral Loans
Essentially, any item with value can qualify for a collateral loan. By far, the most popular these days is your home, as millions of people pull cash out of their properties each year as a home equity loan. These loans have lower rates than car title loans with direct deposit, as the equity in a house or condo is far more reliable than what’s available from a car or SUV.
Car title loans remain quite popular, but they’re still used far less when compared to home equity loans. These vehicle title loans are great if you need to borrow a few hundred dollars, and like a home, you only need to add a lienholder to the title. You can keep driving your vehicle while the payments are made on time. Also, don’t forget title loans with boats and RVs. These are treated differently than auto title loans, as the equity amounts are often smaller. Therefore, the funding amount will be less than expected with a vehicle title loan.
Get A Collateral Loan Near Me
Highway Title Loans offers collateral loans, car title loans, and pink slip cash advances, and we can get you approved and funded with a lender near you in less than one business day. There’s minimal paperwork required when you apply with us, and we’ll provide you with a quick lending estimate in less than an hour. Contact us today at 877-433-5454!