
What It Means To Get Secured Collateral Loans On Vehicles
Looking for a fast cash loan? If so, you may have come across something along the lines of secured collateral loans on vehicles, otherwise known as a title loan. But what exactly are these loans, and what does it mean to get a secured loan on a vehicle anyway?
An auto-secured loan requires collateral from the borrower, so the lender knows they will recover their investment even if the loan itself isn't repaid. In the case of a title loan, the collateral itself is ownership of your vehicle’s title, which serves as the guarantee for the lender that they'll recoup losses if you don't pay them back.
Of course, it's a little more complicated than that, so to better understand, let's explore the differences between secured and unsecured loans.
Secured Loans Vs. Unsecured Loans
As mentioned previously, the primary difference between a secured loan and an unsecured loan is the requirement for collateral. With an unsecured loan, the borrower does not need collateral; the lender is simply trusting the borrower (usually through a good credit score or history) to pay them back as promised. Of course, that can be kind of risky.
That's why secured loans exist. Secured loans on cars is one way someone with bad credit can use their vehicle equity to get a loan. To qualify, the borrower must put up collateral. In the case of a secured personal loan, such as a title loan, the collateral is your car title.
The Intricacies Of Vehicle Title Loans
As the name implies, a title loan allows you to borrow against the title of your car. Your car title proves ownership, motivating you to repay the loan to keep your vehicle. While this sounds alarming, a title loan can be quite beneficial.
Collateral loans on vehicles have many benefits. For one, since you are borrowing against something of great value, these loans can offer a large sum of money. In the case of Nevada Title and Payday Loans, Inc., you could get up to $15,000. Secondly, since you put up valuable collateral, these types of loans can be acquired even by those with bad credit, which is why they are often referred to as bad credit loans.
That's because your credit history doesn't affect your eligibility for the loan. The lender doesn't have to worry too much about a borrower failing to pay them back, since the car title serves as collateral anyway. Of course, this also means you need a car to put up, and you must fully own that vehicle. You must have a lien-free title.
A lien-free title means that you completely own your car. You are not paying it off, it's not being lent to you by someone else, and there are no outstanding judgments against it. If so, you cannot apply for collateral loans on vehicles if you do not completely own your vehicle.
It's also worth noting that you do not have to give up your car for these loans. You still get to keep and use your vehicle for the duration of the title loan.
Risks and Considerations
While title loans can provide fast cash in emergencies, they also come with risks. If you’re unable to repay the loan, the lender may repossess your vehicle. Additionally, interest rates on title loans can be higher than other loan types. It’s essential to borrow only what you need and ensure you can meet repayment terms to avoid these risks.
Collateral Loans On Vehicles Through Nevada Title And Payday Loans, Inc.
If you're interested in collateral loans on vehicles, the process of applying for one through us is both simple and quick. Nevada doesn't allow for online title loans, meaning you'll have to physically come into a store, but you can apply even with bad credit, and the actual in-store process for bad credit loans like this only takes around half an hour.
If you wish to apply for car title loans, you will need:
- A valid Nevada driver's license or state-issued photo ID. This will prove identity, residency, and age. You must be 18+ to apply for a loan.
- A vehicle title in your name. The title must be clear, with no claims or judgments against it. That means you need to own the vehicle.
- And the vehicle itself, so it can be inspected. A physical inspection of your vehicle will determine how much money you can borrow. A newer vehicle that is in better shape will provide you with a bigger loan.
Simply fill out the online inquiry form here on our website and submit it when complete. A loan representative will contact you as soon as possible to discuss a meeting time and store location that works best for you. When you meet this representative in person, they will ensure all your documentation is valid and conduct a vehicle inspection.
If you qualify for the loan and agree to the terms and rates, you will receive your cash either the day of or the next business day. Overall, getting secured loans on cars through us at Nevada Title and Payday Loans, Inc. is a very short and simple process, making it a good choice for someone who needs money very quickly.
Use Your Car To Apply For A Fast Car Title Loan Today!
We don't recommend taking out a loan unless you need it to cover emergency expenses or mandatory bills, such as medical expenses, urgent car or home repairs, and rent. We do not recommend taking out title loans for unnecessary things, like recreational purchases or entertainment.
Still, if you find yourself in need of a fair sum of money very quickly, this type of loan could serve you well. Get started today with our online form!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.