Unexpected expenses can happen to anyone and at any time. And when you don’t have sufficient cash, it could be a disaster. The financial need could be urgent medical bills due to a sudden illness, major gadget repairs, home renovation expenses or cash to fund some necessary maintenance. If you happen to be faced with any of these or any other challenge that demands your response financially, then getting a loan is one sure way of raising the cash you need.
However, getting a loan, especially a personal loan from your bank, is like passing a cow through the eye of a needle. Too much paperwork is involved, and there are too many conditions to meet before you can qualify for a loan from a traditional bank. If your credit is bad, it gets even more difficult to get a conventional loan.
Secured loans are loans that require a collateral to get. With a secured bank loan, you have to give up possession of your asset. Secured loans are asset-based loans, so if you don’t have an asset to offer, you are not qualified for the loan. Which means that collateral loans are a form of secured loans.
Now, in a situation where your credit is not so good and you need a loan, banks can offer you a collateral loan but you will have to provide a collateral that is worth more than the cash amount you want as loan. The collateral, which is usually a valuable asset, is what secures the loan, and your bank will seize the collateral until you completely pay off the loan.
The value of the asset will be established, and you will be given a cash advance that is lesser than the value of the asset. Your property is what guarantees your lender of your commitment to repay the loan. And if you eventually fail to pay back the money you borrowed, you will lose your asset. Your lender will have to sell of the property to recover the debt.
There are several forms of secured loans offered by different financial companies. For example; personal loans and business loans are secured loans provided by banks. Pawn shops also provide secured loans when you pawn any valuable item of yours for a small cash amount.And a title loan or pink slip loan is another form of secured loans.
A title loan is a form of collateral loan or secured loan, however, the way a title loan works is quite different from how collateral loans work generally.
With a title loan, you are getting a loan based on the value of a property – your car, however, your car is not the collateral you present. Rather, the collateral that secures a title loan is your car title or pink slip.
Your car will be evaluated to find its current value, and you will be allowed to get a portion of your car’s value as loan.
Not like other types of secured loan, you will not give up your car when taking out a secured title loan, but you will keep and continue to drive your car while you pay up the loan. You will only get back your car title when you pay off the loan.
There are three firm reasons why a secured title loan is the best form of collateral loan to get;
Secured title loans are a great way of raising quick cash when you need money fast, especially when the need is an emergency. With your car, you can get a title loan offering your car title as an insurance.
TFC Title Loans is the best title loan company you can find near you.
Apply today for a title loan, secured with your car title, at TFC Title Loans and get that quick emergency cash assistance you need, stress-free!