There are many situations in which an individual will consider getting a loan. Whether it’s to make a purchase or handle unexpected costs, such as medical bills, auto repairs, or emergency travel that they cannot afford. But one of the most common reasons to seek a loan secured by collateral is that they are easier to qualify for. Unlike traditional unsecured loans, a loan using your car as collateral is less risky to the lender which allows those with poor credit the opportunity to secure the emergency funds they need.
In this article, 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 funds. You can often borrow a large sum of money using a collateral loan if you use a high-value asset as a guarantee.
Essentially, you can put up an asset to get the cash you need for emergency expenses. If you stick to the scheduled payments as agreed upon, once you repay the loan, your assets will be returned to you. You should know, that with this type of loan, the lender can seize your collateral asset if you default on your loan, so be sure to only borrow what you can afford to pay back.
Can You Use A Car Title As Collateral For A Loan?
If you need fast emergency cash and own your car outright, you can use your car title as collateral for a car title loan. With this type of loan, your vehicle title serves as the security or collateral, not the vehicle itself. That means you can continue to drive your vehicle as usual while you make payments.
At Delaware Title Loans, Inc., we allow borrowers to use their lien-free car titles for car title collateral loans that can get them up to $15,000 in emergency cash. The amount you qualify for will depend on the value of your vehicle, as determined by its year, make, model, and condition.
Why A Loan May Require Collateral
There are many loan options available to many different people and situations. Choosing what type of finance loan is a personal preference based on your needs, the requirements, the amount you can borrow, and the process. With unsecured loans, the borrower is not required to provide loan collateral to secure the funds they borrow but approval can be much harder to obtain. As for a secured loan, such as a title loan, collateral is required but the approval odds are much better since you are using an asset as an incentive to repay the loan.
What Financial Emergencies Can You Pay 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 if you have fully paid off your car's bank loan. 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 are approved 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 having to visit a store. At Delaware Title Loans, Inc., we allow borrowers to start the approval process right from home 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, agree to the interest rate and loan terms by signing a few documents, and receive your emergency loan amount that day or the following business day.
4. All Credit Types Are Welcome To Apply
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 auto 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.
5. Keep Your Vehicle While Repaying Your Title 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 lenders get to keep your car.
You can continue to drive your car while you pay off your loan. Delaware Title Loans, Inc. will not interrupt your daily lifestyle when you get approved for one of our car title 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 on our site 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.
