Use Your Car as Collateral for a Loan!

Posted by Azizam Taylor on January 27th, 2020

Every lender is unique in his/her way.  It also depends on the vehicle you are trying to get the auto collateral loan on. The more “valuable” the vehicle you have, the less risk there is to the lender. The reason is that the vehicle is going to be taken as collateral to protect themselves because a loan to you is an investment on behalf of the lender.  Most times you may have a credit score just above 500 and still qualify. Many people believe higher interest rates are associated with applying for an auto title loan, it depends who your lender is, what the value of the car or truck is, what the borrower's credit rating is. However, the good news is the more competition that exists in the title lending industry, the lower the interest rates will continue to be for the borrower.

A lot of people noticed that banks, from time immemorial, were not big on giving out personal loans, even when the person had good credit and collateral. When the banks decided to give out loans, one had to pay expensive interest rates or be hassled for deferring. A car title loan is not to be seen as a long-term financial loan, but a short-term one. It can aid you for the time being while you search for another solution. Around the world, equity loans are the same thing as a mortgage loan. It is secured by an exchange of the title of real estate as collateral for a loan. Equity loans or home equity loans provide you with loans over the value of your home.

Your home in this sense is your security or collateral for acquiring a loan. It is very attractive to individuals in need of quick loans, as they offer you funds to any amount so long as your home is worth more than what you owe.  If you have enough home equity, this is the best means of obtaining funds for your heavy expenses. Here is more about equity loans. Learn more at

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Azizam Taylor

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Azizam Taylor
Joined: January 15th, 2020
Articles Posted: 18

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