These Are the Benefits of Auto Equity Loans
If you need access to quick cash for emergencies, one option is auto equity loans. Never heard of an auto equity loan? They’re similar to home equity loans.
Just like home equity loans, you borrow money against the equity you have in your car. Lenders look at the value of your car, minus the amount you may owe on an existing loan, and calculate the amount of equity. That’s the amount you can borrow.
Auto loans give you cash faster than most other types of loans, and they can help you when you need financial help right away. Read on to learn more benefits of auto loans.
1. Auto Equity Loans Don’t Require a High Credit Score
If securing a bank loan has been challenging because of a low credit score, an auto equity loan may be a good option. Since you are using your car’s equity to secure the loan, a high credit score isn’t necessary.
2. Car Title Loans Cost Less Than Cash Advances
One of the ways some people deal with financial emergencies is to withdraw cash with a credit card. This gives you quick access to money. It adds more unsecured debt and can include many fees on top of the credit card interest.
Interest rates, repayment schedules, and fees can often be negotiated with the lender of car title loans. Check out this article to know more about how an auto loan works.
3. Get Your Cash the Same Day
One of the most significant car title loan benefits is how fast you get the money. Most lenders can process your loan application in a few minutes and provide you with cash the same day.
Keep in mind auto equity loans are usually short-term loans. Most auto equity loans must be repaid in a month or two. When accepting the loan, review the terms and conditions carefully to understand your financial responsibility.
4. Keep Your Car
Some people think if you get a loan on your car’s equity, you cannot drive your car while you have a loan. That is not the case. The lender holds your car’s title until your loan is repaid, but you can use your car just as you did before.
As long as you make your loan payments according to your loan agreement, your car stays with you for you to use.
A Quick Solution
If you need cash right away, auto equity loans might be the right solution for you. You can usually borrow 15%-50% of your car’s value, and you don’t need great credit to qualify for a loan.
Car title loans are processed quickly, and you usually get your money the same day. You can keep and use your car while you are repaying your loan. Ensure you understand all the details of your loan and make your payments according to your loan documents.
To learn more about alternative finance options, explore the rest of our site.