What It Means To Get Secured Collateral Loans On Vehicles
If you've been looking into loans, 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?
A secured loan is one that requires collateral from the borrower, so the lender knows they will get their money back 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 let's dive into some of the specifics of collateral loans on vehicles.
Secured Loans Vs. Unsecured Loans
As mentioned previously, the difference between a secured loan and an unsecured loan is collateral. With an unsecured loan, the borrower does not put up anything as 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 are one of the ways for someone with bad credit to get a loan. With these loans, the borrower has to put up collateral. In the case of title loans, that collateral is your vehicle’s title.
The Intricacies Of Title Loans
As the name implies, a title loan allows you to borrow against the title of your car. The title is what determines your ownership of a vehicle, so it acts as good incentive to make sure the loan is properly repaid. 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 quite a lot 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.
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. This means you cannot apply for collateral loans on vehicles if you do not completely own your vehicle. But if you do, you’re all set to apply.
It's also worth noting that you do not have to give up your car for the duration of the loan. You still get to keep and use your vehicle during that time.
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 only takes around half an hour.
If you wish to go this route, you will need a Nevada driver's license or state ID, a lien-free title for your 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 place that best works 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, you will receive your money either the day of or the next business day. Overall, it's a very short and simple process, making it a good choice for someone who needs a lot of money very quickly.
That said, we don't recommend taking out a loan unless you really need it to cover emergency expenses or mandatory bills. It's not a good idea to take out 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!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.