If you are struggling with a financially challenging time and require $1,500 or even more then you must apply for a car title loan where you need to offer a clear title that will work as collateral in a form of a secure loan.
However, these loans refer to auto equity loans but due to lack of awareness, many people started considering it the same. Both loans are different and have their distinct features; one of the major differences is related to vehicle ownership. Let’s take a brief look at the nature of both secured loans.
Auto Equity Loans
These types of vehicle equity loans are best for applicants who are making payments for the vehicle and not the main owners of the vehicle legally. Moreover, the actual owner is the one holding the lien that can be a bank or a private financial institution. Sometimes the person becomes eligible for this kind of loan when having adequate equity for their vehicle.
The least worth of equity required differentiates from lender to lender; however, the basic rule is that you will be able to get half of the loan against the equity worth. For instance: if you want a loan of $1,000 then you must have around $2,000 equity in your current vehicle.
The following points must be considered when applying for auto equity loans:
- Auto title loan borrowers must be over 18 years old, working, and have an authorized driver’s license, and proof of coverage insurance to get a secured loan.
- The documents need to be presented telling the information about the pending balance on the real loan alongside the payment transactions.
- One term of the auto title loan agreement will include agreeing to the new lender taking security interest on the vehicle, letting them take away the loan if not able to clear the taken funds.
- You can use the vehicle like usual during the auto equity loan loan duration.
- Individuals with bad credit or no credit history may face problems when applying for auto title equity loans.
Car Title Equity Loans
These types of loans are the same as car title equity loans but offer numerous benefits not present in the equity loan type. In addition, the requirement to apply for a title loan is having a valid ID, insurance proof, resident proof, clear title, and income proof. To become eligible for a car title loan the need is to be the sole owner of the vehicle with a clear title. Moreover, if you have pending payments against your vehicle or have bad credit then also you can apply for a title loan and get instant funds.
Points to consider when applying for car title loans:
- The vehicle must be in working condition and have a clear title free from all types of lien.
- The funds worth will be calculated after inspecting the vehicle’s condition and checking the documents given.
- If your loan application gets approval then you become eligible to get funds within the same day.
- The applicant has complete authority to use their vehicle for meeting daily commuting needs.
- No worry regarding bad credit scores or no credit score.
As you have read the basic conditions and eligibility criteria for getting a title loan or auto equity loan are quite similar. Besides, if you have doubts and want an expert opinion then you must contact Champion Cash Loans. We are the leading lenders in the U.S working for over a decade with a motive to help every person requiring instant financial assistance. Also, our skilled agents won’t charge any consultation fees and settle your queries instantly.