Personal loan using car as collateral

 

personal loan using car as collateral

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Personal loan using car as collateral

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Get expert advice for all your financial questions, from spending , saving and investing smartly; to tackling taxes; to buying a home; to getting the right insurance.

Financial news and personal financial advice on retirement planning, college saving, taxes, mortgages, autos, real estate, investing and more.

Read latest personal finance articles about loans, saving & spending, lifestyle, insurance, taxes, career & education, retirement, and real estate. Try our ...

Who Qualifies
Because this type of loan is based on equity you've built up in your car, with most title loan companies, you will be required to own your car outright. If you still owe money on your car loan, your car's title is still in the hands of the bank, so you can't use it as collateral for a loan. Other requirements may include a minimum age, proof of your residence and proof of your income.

Read the Large and Fine Print
Driving your car to the title company to expediently get the money you need may seem simple enough, but before you give this loan the green light, you need to know what you are legally committing yourself to. Look for the following information within your contract:

Alternatives to Car Title Loans
As with any loan, it's important to evaluate what other alternatives you may have for acquiring the money you need. Compare the interest rates and penalties of other loan options that might be available to you.

We offer a variety of personal loans , each offering different features and rates, depending on the items you are borrowing for.

Broadly speaking, there are two categories of personal loans:

A loan is 'secured' when you use an asset as collateral, or security, against the loan. So, if you buy a car you can use it as collateral, or security, against the loan.

The reason for offering an asset as security is because, when you apply for a personal loan , we need to know you are in a position to repay it. It also means you benefit from a lower rate as there is less of a risk to Westpac when there is an asset involved.