Ride Over Financial Difficulty With An Auto Equity Loan

By Author: Sarah Waters
Total Articles: 7
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In times of financial trouble your car becomes a valuable asset as it can get you ready cash in the form of an auto equity loan. You do not have to sell your car, and in fact continue to use it while paying back the loan.

Financial difficulties can strike anyone at any time. We regard our property and jewelry as valuable investments for tough times, but often forget that our vehicle too is a valuable asset during a money crunch. Swift auto equity loans make it very convenient to come by ready cash in times of pressing financial commitments. An auto equity loan is also called the car title loan, the auto title loan and the pink slip loan.

An auto equity loan is given on the basis of the value and equity of your vehicle. A borrower receives cash without selling his/her car. The evaluated equity determines the loan amount. Other factors that determine the amount of money you receive are your ability to repay the loan amount and your monthly income. You can apply for an auto equity loan and leave with cash on the same day.

When you need cash immediately, you may choose to take an unsecured loan that does not ...
... need collateral. But in such loans the lenders charge you for the risk they take by either giving you less money than you asked for or providing you the loan at a higher interest rate. They may even turn you down for the loan if you have a poor credit history. Car title loans are secured loans against the current book value of your car, so none of the issues described above hold sway over an auto equity loan.

Listed below are the advantages you get when you utilize an auto equity loan:

• You may be signing over the title rights to your car but with a car title loan you can carry on driving it over the loan repayment period.

• This loan bears far less risk than property loans or other secured loans.

• These loans usually provide for more cash than a traditional payday loan.

• The procedure for applying and receiving the loan is very simple and quick.

• Auto equity loans are cheaper than unsecured loans and the installments are designed according to your budget.

• Repayment can be usually done in either equated fixed monthly installments or via open-ended payments requiring a regular minimum payment.

• Auto Equity Loans can be acquired even if your vehicle is not paid for in full.

• Your credit score is usually ignored by the lenders.

An auto equity loan is a secured loan where you use your vehicle title as collateral. Your money lender gets to place a lien on your car title and you will need to surrender its hard copy. This surrendering of the vehicle title provides you with a loan amount in exchange. Once you repay the loan the lien is removed. The car title is returned to you immediately.

However, if you fail to make the repayment of the loan, the money lender will repossess your car and sell it to recover the outstanding debt. But until that moment you get to drive your own vehicle. So, remember to explore the highly feasible option of auto equity loans if you face an untoward financial situation.

The writer of this article is associated with Trading Financial Credit, a well-known company providing car title loan and auto title loan service for nearly 20 years in Albuquerque. Trading Financial Credit has helped countless individuals and families get back on their feet with auto title loans Albuquerque.