Borrowing Money using your Vehicle as Collateral

canstockphoto2903705Many people from time to time may require the use of a loan in order to obtain money for various reasons. There are several different methods to obtain funds if you are short but many of them depend on your existing financial state. If you own a house you can likely obtain a line of credit based on your homes worth. For many people however this is not an option as they do not own their own home. But one method that many people often overlook is using their vehicle as a way of backing up the loan. For many who do not own their own place a vehicle if often the most expensive collateral they own and it can be used to back borrowed money.

The name often associated with this type of loan is a Title Loan. While title loans may have fees associated with them that are higher than using a home equity loan, they can be used especially if done so responsibly and only when someone is truly in need. They are usually quit easy to acquire since your vehicle actually secures the loan. There is usually also no need for any credit checks since it is completely backed up regardless. If you cannot pay back the loan, the company lending you the money will legally take your car in order to pay back the loan. Given this case you may be entitled to the remaining amount of the cars worth.

One of the most important thing to remember if obtaining loans against your car is to make sure you pay back each payment on time. This is generally understood when paying back any bill but should be noted especially on ones that may have a higher rate of interest charged than others. You don’t want to end up paying interest on missed payments, this will end up costing you far more than it could have. It is also important to never borrow more than you know you can payback. When borrowing against your car you can generally expect to receive upwards of 50 to 60% of the vehicles worth. This is usually the maximum amount because even though you car may be worth more, a creditor does not want to have to wait months trying to sell it in the case of you default on the loan. They want to be able to off load it almost immediately to a buyer in order to get their money back. Given what cars can be worth, this can still add up to a pretty decent sized amount of money for you that can be quickly acquired.

The whole process can now be completed online in many cases. Several lenders are accepting online applications in order to expedite the process and make it more convenient. The information given in order to do so online from a participating company are your name, address, vehicle registration numbers and insurance information along with some stats on your vehicle such as mileage.

If you are in a situation where this kind of service looks appealing to you, Logbook Loan Centre – Loans Against Your Car will help you along. They have been doing business for over 20 years with many different locations. They even include an easy to use online calculator to determine specifics of your loan and payback amounts based on different time periods. You can even pay sooner than you signed up for with no penalties like you may find at other locations. Just remember always be responsible with your money and only borrow what you can afford.