How can you use your car title to help you get a personal loan at low interest rates. Find out from this article

1. How to Use a Car Title as Collateral for a Personal Loan
By http://www.LendingAndCredit.net
You can use your car title as
collateral for a personal loan if
there are no other options of
raising cash in emergency
situations, and you do not want
to sell the car. Many people are
not comfortable with this
arrangement but it is the best
option if you do not want to sell
the car.
Essentially, there are two types
of car title loans. The first option
is quite similar to a payday loan.
There are no credit score checks
or any debt-to-income ratio tests. As long as you have a car, you can apply for this
loan.
The other option is when you use the ownership car as collateral to get the loan.
This is a secured personal loan you can get from a bank, credit union you are a
member of or any other finance company which you’re a comfortable working
with.
Here are 5 tips to use when you want to use your car title as collateral for such
loans.
1. Go to your local bank and ask if they will give a secured loan using your car
title as collateral. Using your car title as collateral does not mean you cannot
drive the car anymore. However, it does mean that for a temporal period you do
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2. not own the title of the car anymore and that if you default on repaying the loan
the lender will take possession of the car.
2. If the local bank or credit union gives such loans, then apply for the loan. The
application process would usually require your full name, address, employment
records, prove of income in the form of bank statements and references.
3. If the loan is approved, go ahead and sign the paperwork. Mail the signed
papers to the lender as well as the title of the car. If it is a local bank or credit
union, you want go to the branch and hand in the papers and title yourself. The
loan will be given to you in a check or transferred electronically to your bank
account. You will receive your title back after you have completed repaying the
loan.
4. What if your loan application is refused by the bank or credit union? The next
option if this happens, with my experience, is to go to American General Company
that specializes in bad credit financing. A rep will contact you to arrange the
signing of the necessary paperwork, picking up the car title from you and giving
you your check.
5. What if any of these do not work out? If any of these fail, search the Internet
for auto title loan websites. When you find one you are comfortable with, make
your application. You can also visit your local payday loan lender or an auto title
lender and make your application to see if you can use your car title as collateral
for a personal loan.
When using an Internet lender, it is important to take basic Internet security
precautions to protect your identity from being stolen. On the lender's website,
ensure you are filing out application forms from secure website. Check to confirm
that site is secure by looking at the address bar. The website address should be
preceded by "https://". Also look on other parts of the site for a security badge or
certificate sign.
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3. To make this search a very simple process for you, we have put a selected group
of lenders who may consider you for a car title loan. So go right now to:
http://www.LendingAndCredit.net
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