People can encounter expensive, unexpected costs, such as medical bills, auto repairs, and surprise travel costs, that they may not be prepared for. If they don’t have an emergency fund, they may be unable to afford them. The cost may be too much for them to borrow from a friend or family member, meaning they may need a loan to cover the cost.

In this article from Delaware Title Loans, Inc., we will explain how you can use your car title as collateral for a loan to cover unexpected expenses. We will explain what collateral loans are, why a loan may require collateral, and what the benefits are of car collateral loans.

What Are Collateral Loans?

A collateral loan is a type of emergency loan that allows you to use something valuable you own to secure a loan. You can borrow a lot of money using a collateral loan because you can use a high-value asset as a guarantee.

Essentially, you can put up one of your assets to get the cash you need for emergency expenses. The loan lender can seize your collateral asset should you default on your loan. After repaying the cost of the collateral loan, you get your asset back without losing ownership.

Can You Use A Car Title As Collateral For A Loan?

Some of the most popular collateral loans are mortgage loans, home equity loans, and real estate loans. If you own your car outright, you can use your car title as collateral for a loan. You can use your vehicle title as security for a collateral-based loan called a car title loan.

At Delaware Title Loans, Inc., we allow borrowers to use their lien-free car titles for car title collateral loans that can earn them up to $15,000 in emergency cash. How much you can earn depends on the value of your vehicle, as determined by its year, make, model, and condition.

What Financial Emergencies Can You Pay For With A Car Collateral Loan?

Borrowers can use a vehicle collateral loan to help pay for financial emergencies they do not anticipate. Emergency expenses can arise out of nowhere; those without an emergency fund can have to face charges of hundreds or thousands of dollars without the money saved to pay for them. You can use your vehicle title as collateral to secure a loan that can give you the money you need to handle these expenses.

The following are some financial emergencies you can pay for with a car collateral loan:

• Medical bills
• Auto repairs
• Home repairs
• Increased rent
• Late bills
• Emergency travel costs
• Veterinarian fees

Top 5 Benefits Of Car Collateral Loans

A car collateral loan can help those in need of help during a financial emergency. You can get approved for an auto collateral loan as long as you have paid off your car fully. There are many benefits of vehicle collateral loans that you can take advantage of to get approved quickly, no matter your financial situation.

The following are five advantages of car collateral loans:

1. Simple Eligibility Criteria

Loans at banks and traditional financial institutions have significant requirements for you to receive the money you need for your emergency. One of the benefits of a car collateral loan is the simple requirements you need to meet. You must be 18 years old and have fully paid off your car.

Other than that, you need a select few items to get approved for an auto collateral loan:

• Your driver’s license or state-issued ID
• Your vehicle for a quick inspection
• A lien-free car title in your name

2. The Approval Process Takes Less Than A Day

Another advantage of loans protected using vehicle titles as collateral is the short approval process. You do not need to wait weeks to find out if you can get approved for a car collateral loan. Potential borrowers can begin the process and find out if they can get approved on the same day.

You can also receive your emergency cash through direct deposit on the same day of approval or the next business day. This fast process allows you to use the money to handle your urgent expenses without having to worry about missing your payment.

3. Getting Approved Online Without An In-Store Visit

You can also get a car collateral loan online without needing to make a store visit. At Delaware Title Loans, Inc., we allow borrowers to start the approval process online to get an online title loan. You can fill out our online form and receive a call from one of our loan associates.

They will agree to meet you at any convenient location, such as your home or office. You never need to visit one of our Delaware store locations. You can get approved and receive your emergency money from your home.

4. All Credit Types Accepted

One of the advantages of a car title loan is that you do not need good credit to get approved. At Delaware Title Loans, Inc., we will do a soft credit check, but your credit score will not affect your ability to get approved. This is because you use your vehicle title as loan security, meaning you can get a bad credit car collateral loan.

Your creditworthiness will not affect your loan approval because a title loan is secured with your lien-free car title as collateral. You can get approved for emergency cash at Delaware Title Loans, Inc. for a car collateral loan with bad credit, good credit, or no credit score at all.

5. Keep Your Vehicle While Repaying Your Car Collateral Loan

Car collateral loan borrowers can also keep their vehicles while repaying their loans. Just because you use your car title to secure the loan does not mean the loan lender gets to keep your car.

You can continue to drive your car and pay off your loan. Delaware Title Loans, Inc. will not interrupt your daily lifestyle when you get approved for one of our car collateral loans. Continue to drive your car to work or school and make your payments on schedule.

Get Approved For Emergency Cash With A Car Collateral Loan Today!

You can use your car for a collateral loan to get the emergency cash you need to handle unexpected expenses. At Delaware Title Loans, Inc., we offer car collateral loans to borrowers who own their cars outright and can meet our simple requirements. Get financial help today by filling out our online form with your basic information. One of our friendly loan representatives will call you to assist you with the rest of the straightforward approval process.

 

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