Car Equity Loans Are More Open than Regular Loans But There Are Still Other Alternatives
There are times when you badly need money, and you have no choice but to obtain a loan. There’s nothing wrong with doing so provided that you can repay the loan on time; otherwise, you will suffer from substantial interest rates and other penalties.
The problem is that even if you already decided to obtain a loan, you might still not get one. It’s due to the requirements for getting a loan. If you fail to meet the standards set by the loan provider, your application could get rejected.
It’s why you have to consider a car equity loan. This type of loan allows you to borrow against the value of your car. You can borrow up to 70% of the value of the vehicle and repay it within the next few months. Like other loans, you have to agree with the terms before you decide to sign the deal. The good thing about car equity is that it’s more open for everyone who wants to get a loan as long as you own a car.
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No need to turn over your logbook
Other car loans require you to turn over your logbook, and it comes with a risk. Failure to repay the loans on time might mess you up right away. With equity loans, you only need to show proof of ownership, and you can get the requested amount. An alternative to these are Logbook Loans that could also work for you.
Self-employed people can get a loan
When you’re not working for a company, you register yourself as self-employed. The problem when you check this box in loan application forms is that most creditors will think you have no stable income source. As such, it’s easy for your application to get rejected. With car equity, you don’t need to worry. You can still pursue the transaction.
There’s no formal credit check
Having a low credit score is an issue for many people. It’s challenging for them to obtain any loan due to the credit check done by creditors. With car equity, you don’t need to worry about it. Even if you have a terrible credit score or existing debts, it’s okay.
The process is quick
You can start the application now. You will have an assigned loan specialist who will work with you until you finish the application. You can even receive the amount borrowed the same day. If you need the money for emergencies, you will feel glad that this option is available. Imagine if there’s a medical emergency and you have to wait for days or even weeks before receiving loan approval.
Decide if you want to pursue this loan and prepare yourself for repaying it. Although it’s easy to obtain a car equity loan, it also comes with the risk of losing your car. If you fail to repay on time and after several notices from the creditor, it will be a problem. You agree to hand over the vehicle if you can’t pay off the loan.