Ins And Outs Of Auto Equity Loans In Tallahassee
Auto equity loans are very similar to loans you can get with your home, such as a home equity loan. The loan is taken out by a borrower based on the value of your vehicle in this case instead of your home. There are many benefits to taking out loans against your vehicle, such as equity loans and Tallahassee title loans. Equity loans differ from auto title loans. With an auto equity loan, you take out a loan based on the equity you have built up paying off your loan. With a title loan, you will be taking out a loan using your vehicle title as collateral for securing that loan money. In both cases, you will be paying back interest for securing a loan using your vehicle.
As with any type of secured loan, auto equity loans will also come with their own set of risks. If you take out a loan and fail to make all of your loan payments, the lender you took the loan out with may be able to repossess your vehicle to cover your missed payments. This can be devastating for people who need their car to get to school or work. Also, there is the hardship that comes with having a repossession on your credit report.
With the risks involved taking out these types of loans, it is essential to only take them out when you have no better options available. Emergency situations are a good example of when you should consider using a secured loan for money. If you have friends or family to borrow from or money in your savings account, those options would be better to consider first.
How To Find An Auto Equity Loan
There are many places where you can take out an auto equity loan. A few of the options include your local credit union, community bank and auto lenders. Many of these lenders will base your interest rate on the loan according to your credit score. For a title loan, most lenders will not need you to submit your credit score in order to secure the loan. The reason for this is that you will be using your title as collateral to obtain the loan.
Some of the top banks in the United States do not offer auto equity loans to their customers. Some of these banks include Citibank, Chase, Bank of America and Wells Fargo. Some of your local banks will typically offer their customers auto equity loans, however. When you obtain these types of loans from a credit union, you will generally find that you are charge upwards of 18-percent interest for the loan. There may be extra loan fees on top of this as well.
Auto Lenders For Equity Loans
If you want to go with a lender that only offers borrowers loans based on the collateral of their vehicles, then you should consider the pros and cons of this option. While you may find it easier to get approved for loans with these lenders, you will typically be charged a much higher interest rate than you would with a credit union or local bank in your area. However, these may be the best option for borrowers with less-than-great credit scores. Another benefit of these types of loans is that you will be able to get your funds in less than a couple days. The lender will be able to send your money straight to your bank account by direct deposit. Also, you can use different types of vehicles for auto equity loans and title loans.
Online Auto Equity Loan Lenders
If you want to shop for auto equity loans from the comfort of home, there are many online lenders to choose from. A couple of the more popular lenders who offer these types of loans to borrowers include OneMain Financial and Mariner Finance. These two companies offer their customers with bad credit a few secured loan options. If you have a score below 630, these companies might be your best option for getting a loan using your vehicle as collateral.
If you have a really low credit score and cannot get approved with many of the options already listed, another company you can try is Finova Financial. They will extend loans to borrowers who have the lowest of credit scores. However, to secure a loan through them includes extra fees and a much higher interest rate. These loans are very expensive and should only be considered as a last option when you need money fast in an emergency.