5 Tips on How to Use a Car Title As Collateral for a Personal Loan

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 and arrangement but it is the best option if you do not want to sell your car and you need cash.

Essentially, there are two types of car title loans. The first option is quite similar to a payday loan. There are no credit score checks or any debt-to-income ratio tests. As long as you have a car, you can apply for this loan.

The other option is when you use the owership car as a collateral to get the loan. This is a secured personal loan you can get from a bank, credit union you are a member of or any other finance company which your a comfortable working with.

Here are 5 tips to use when you want to use your car title as collateral for such loans.

1. Go to your local bank and ask if they will give a secured loan using your car title as collateral. Using your car title as collateral does not mean you cannot drive the car anymore. However, it does mean that for a temporal period you do not own the title of the car anymore and that if you default on repaying the loan the lender will take possession of the car.

2. If the local bank or credit union gives such loans, then apply for the loan. The application process would usually require your full name, address, employment records, 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 signed papers to the lender as well as the title of the car. If it is a local bank or credit union, you want go to the branch and hand in the papers and title yourself. The loan will be given to you in a check or transferred electronically to your bank account. You will receive your title back after you have completed repaying the loan.

4. What if your loan application is refused by the bank or credit union? The next option if this happens, with my experience, is to go to American General company that specializes in bad credit financing. A rep will contact you to arrange the signing of the necessary paperwork, picking up the car title from you and giving you your check.

5. What if any of these do not work out? If any of these fail, search the Internet for auto title loan websites. When you find one you are comfortable with, make your application. You can also visit your local payday loan lender or an auto title lender and make your application to see if you can use your car title as collateral for a personal loan.

Other Considerations

When using an Internet lender, it is important to take basic Internet security precautions to protect your identity from being stolen. On the lender’s website, ensure you are filing out application forms from a secure website. Check to confirm that site is secure by looking at the address bar. The website address should be preceded by “https://”. Also look on other parts of the site for a security badge or certificate sign, especially from the pages where you fill out forms.

Money Loan With No Bank Account – 5 Personal Loan Tips

Having a bank account opens you up to a world of opportunities. In fact, it lets you do so many things with your money that most checking account and savings account holders take them for granted.

After all, with a bank account you can access your cash from just about anywhere via the nation’s interlinked network of ATM machines. Having an account of your own also allows you to make credit and debit card purchases, whereby the money is debited right out of your account. And there are other benefits, as well, such as the availability of online banking, special bank-sponsored auto & mortgage loans, having a place to cash checks written to you, and the ability to earn interest on your money.

If you are short on cash, then having a bank account also enables you to take out a personal loan. Why? Because the majority of personal loans are of the unsecured type. This means that the lender does not require that you put up collateral. To partially compensate for this risky type of loan, the lender will require that the borrower have a bank account.

So, how do you get a money loan with no bank account? Here are 5 personal loan tips for people without bank accounts:

1. Consider borrowing from a pawn shop:

If you have something of value on hand, you can always try a pawn shop. They will appraise the item and allow you to take out a loan against it – with interest, of course.

2. Borrow money from friends or family:

If you do not have something of value to put up as collateral at a pawn shop, consider borrowing money from friends or family. Just be careful: if you are not able to repay the loan, you may be opening yourself up to some serious relationship problems down the road.

3. Borrow against a credit card:

Some people who do not have a checking account still manage to have a credit card. If you do, you can always borrow against it. Just remember: the interest rates will be sky-high, especially if you do not have a strong credit score.

4. Borrow against your car’s title:

Auto title loans are another form of high-interest loan. Essentially, you sign your title (car ownership rights) over to the lender. These are usually short-term loans, and when you repay the loan you get your title back in your name.

5. Apply for a checking account with a second chance checking bank:

If you want to avoid a high-interest loan but do not want to borrow money from someone you know, you should consider applying for a checking account at a second chance checking bank. These banks specialize in working with customers who have not been able to get accepted for a checking account at other banks. Second chance checking banks are in most ways just like other banks, and they offer the full range of services. The only major difference is that they are much more likely to grant you a checking account.

Consider these 5 tips for getting a money loan with no bank account.