How to Use a Car Title as Collateral for a Personal Loan


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How can you use your car title to help you get a personal loan at low interest rates. Find out from this article

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How to Use a Car Title as Collateral for a Personal Loan

  1. 1. How to Use a Car Title as Collateral for a Personal Loan By You can use your car title as collateral for a personal loan if there are no other options of raising cash in emergency situations, and you do not want to sell the car. Many people are not comfortable with this arrangement but it is the best option if you do not want to sell the car. Essentially, there are two types of car title loans. The first option is quite similar to a payday loan. There are no credit score checksor any debt-to-income ratio tests. As long as you have a car, you can apply for thisloan.The other option is when you use the ownership car as collateral to get the loan.This is a secured personal loan you can get from a bank, credit union you are amember of or any other finance company which you’re a comfortable workingwith.Here are 5 tips to use when you want to use your car title as collateral for suchloans.1. Go to your local bank and ask if they will give a secured loan using your cartitle as collateral. Using your car title as collateral does not mean you cannotdrive the car anymore. However, it does mean that for a temporal period you do Visit us now at: Page 1
  2. 2. not own the title of the car anymore and that if you default on repaying the loanthe lender will take possession of the car.2. If the local bank or credit union gives such loans, then apply for the loan. Theapplication process would usually require your full name, address, employmentrecords, prove of income in the form of bank statements and references.3. If the loan is approved, go ahead and sign the paperwork. Mail the signedpapers to the lender as well as the title of the car. If it is a local bank or creditunion, you want go to the branch and hand in the papers and title yourself. Theloan will be given to you in a check or transferred electronically to your bankaccount. You will receive your title back after you have completed repaying theloan.4. What if your loan application is refused by the bank or credit union? The nextoption if this happens, with my experience, is to go to American General Companythat specializes in bad credit financing. A rep will contact you to arrange thesigning of the necessary paperwork, picking up the car title from you and givingyou your check.5. What if any of these do not work out? If any of these fail, search the Internetfor auto title loan websites. When you find one you are comfortable with, makeyour application. You can also visit your local payday loan lender or an auto titlelender and make your application to see if you can use your car title as collateralfor a personal loan.When using an Internet lender, it is important to take basic Internet securityprecautions to protect your identity from being stolen. On the lenders website,ensure you are filing out application forms from secure website. Check to confirmthat site is secure by looking at the address bar. The website address should bepreceded by "https://". Also look on other parts of the site for a security badge orcertificate sign. Visit us now at: Page 2
  3. 3. To make this search a very simple process for you, we have put a selected groupof lenders who may consider you for a car title loan. So go right now to: Visit us now at: Page 3