Collateral Loans On A Car From Highway Title Loans
Borrowers have turned to collateral loans for decades, and similar to car title loans, a collateral loan allows you to use the equity from a car or truck as security for a loan. You can borrow a significant amount of money with a collateral loan on a vehicle, in some cases upwards of $20,000, and unlike unsecured loans, there are far fewer documents needed to get you approved. 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 who've been turned down for personal loans because of poor credit or limited credit histories. Instead of checking your FICO score, we want 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. The bottom line is that you can qualify for a collateral loan with any vehicle valued at $6,000 or more. Yes, you'll need to bring in the car or truck for an inspection, but as long as the car is titled in your name and worth $5,000 or more, you can qualify for a title loan of $3,000.
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 Get A Loan With A Car As Collateral
Why someone would opt for a car collateral loan is often pretty straightforward. Most applicants have already been rejected for payday or bank loans because of their bad FICO scores. Or perhaps they want to borrow more than the few hundred dollars they would get from a personal loan lender. So, instead of an unsecured loan, they use the equity in their car to get emergency cash. A car collateral loan allows them to borrow a considerable amount of money, and they can keep driving the vehicle while making payments each month.
Before getting a car collateral loan, you should 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.
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 pretty 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 and show proof of income. 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.
Interest Rates With A Car Collateral Loan
Car collateral loans from Highway Title Loans can be a real lifesaver when you need fast cash, but one downside involves the high interest rates. Similar to title loans, a collateral loan on a car comes with interest rates that depend on state regulations and your borrower profile. Some states, like California, have interest rate caps of 36% for most vehicle collateral loans. In contrast, others, like Florida and Tennessee, have no interest rate caps and rely on lender competition to keep rates down. You can expect an APR of 70% or more in those states, so limit your loan amount to only what's necessary.
Contact Highway Title Loans at 877-433-5454 if you have a high rate on an existing car collateral loan. We'll work to refinance the loan and get you a more management interest rate and payoff term!
Get A Collateral Loan With Highway Title Loans
Highway Title Loans offers collateral loans, car title loans, and pink slip cash advances for anyone with a paid off car, motorcycle, or semi truck. 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!