Whenever an emergency cash need arises, a person looks straight at his assets. Selling an asset is undoubtedly the bad financial choice to make, but using that asset as collateral for a loan is an excellent financial decision. You can make the most from your car through a car equity loan when you need immediate cash.
How Does it Work?
You approach a lender and ask him to use your car as collateral. Your loan amount is based on the market value of your car. While you can expect an APR of approximately 36 percent with this kind of car loan, when you approach a credit union or community bank, it might take a week to get the loan amount. However, when you apply for this secured loan online, it won’t take over two days.
Why a Car Equity Loan is an Ideal Choice?
Here are some reasons that convince you to borrow some money against your car’s market value.
Immediate Cash Availability
In a situation where you can’t wait much, a car equity loan comes to rescue you as it offers a helping hand in need. You can expect cash in your account in less than two days when you approach a lender from the digital world. This loan choice offers you great relief when you have a medical or any other life emergency. You can tackle your immediate cash needs via it.
No Need to Take a Big Risk
When you are facing financial trouble, take into account all the assets you can use to get out of this trouble. Many people think of home refinancing or home equity loans; both options put your significant life asset on the risk. If you are unable to keep up with the monthly payment schedule, then it’s the point where you lose your home, which is undoubtedly the worst-case scenario in which you never want yourself.
Contrary to this, when you opt for a car equity loan, you put your car at risk. In case of non-payment, you lose a vehicle, but it’s not a significant loss. Your vehicle is an asset, but its value is less in comparison with a home.
Loan Available Even with Bad Credit
Getting a loan with bad credit is always a big challenge in one’s life. You can handle this challenge quite well when you approach online lenders who are ready to give loans for people whose credit score is below 630, and you can expect a car equity loan below 36 percent. Even many lenders are offering loans to people with a credit score even lower than 630. However, it is good to know that this kind of loan includes below 36 percent APR and additional fees. Although this loan is expensive when you encounter both credit score and money trouble, then locking yourself into a deal that can offer you immediate cash doesn’t seem like a bad deal.
Easy to Apply
The best part about a car equity loan is that you don’t have to put significant effort into obtaining the loan amount. Just open an online website that offers you a car equity loan facility, fill the form, provide all documents, and wait for loan approval. You can access the loan amount within two days.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.