Pawning Vehicles To Get a Loan

"Pawning Vehicles To Get a Loan"

Pawn is the amount of money given to you that corresponds to the value of your property. In the case that your default on your loan, the item will not be returned to you. Once you agree to pawn a particular item, this means that you are also transferring the asset to the pawnbroker once you fail to meet the contract terms. The reason why many people choose to pawn their personal items, such as a car, is because it could give them quick and accessible cash. However, pawnbrokers don’t have to follow any code of responsible lending that lenders do.

Pawned My Car, Can I Still Use It?

Based on our firsthand experience, there are many pawnbrokers out there and they don’t have the same criteria of operating their business. However, most of them will let you use your car even if you pawned it against a loan. There are even some that will allow you to lend some money as compensation for the car parts – in the case that it’s too expensive. It is still best to check their individualized terms and conditions to determine what you are entitled to.

Secured Loan

Based on our observations, when borrowers use their assets to serve as collateral for the loan, they are taking a cash loan. Most lending companies will do everything to offer other avenues like rebuilding your loan so it suits your current financial capacity before they will finally take your asset – which can be in a form of car, house, and etc. Typically, a secured loan is a much better and safer resort compared to a pawn loan – though the money might take a little while to process. If you find pawn loan way too risky, taking out a secured loan is your best option to get the money that you need.

Secured loan lenders are not pawnbrokers. They will not offer immediate cash for your car, but they do have same-day approval – depending on your financial circumstances. The great thing about secured loan lenders is they follow responsible lending. Their primary goal is to provide convenience and ease to the borrowers. This means that you could take out a secured loan of as much as $10, 000, without the need to leave your home. In fact, you can even fill up the application form on your smartphone!

Moreover, you can utilize your car as collateral when applying for a secured loan without worrying that it will be taken from you. This is because the lenders will not allow you to take out cash that’s way beyond your repayment capacity. A payday loan also has a realistic assessment and the lenders are accommodating and understanding.

Can I Use My Car Against Secured Loan?

We have found from using this product that, if you are wondering if you can still use your car even if it is considered as collateral against the secured loan that you took – the answer is yes. Though there are various kinds of lenders that offer secured loans with numerous sets of terms, the majority of them will allow you to drive your vehicle. But, it is still best if you check out the terms and conditions of your lender – just to be sure.

Can I Use My Car As Collateral For A Personal Loan?

You can use your car as collateral for a personal loan when you apply for a secured loan from an online lending entity. Unlike an unsecured car loan, using your used car as collateral can help you take a bigger loan no matter what your credit score is.

A borrower uses their vehicle as collateral in hope of acquiring bigger loans with more favorable terms.

Are You Qualified to Apply for a Secured Loan?

A secured loan has a very flexible criterion that sets them apart from other loan schemes. Borrowers need to meet the following in order to qualify for the loan.

  • All applicants must be at least 18 years old
  • All applicants must have a stable income into their personal bank account for the past 3 months
  • All applicants must have an active phone number and email address
  • The application will require 100 points of ID
  • Online banking information must be presented during the application procedure

Approval Times of Secured Loan

Lending companies that offer secured loans do their best to update you with the result of your application as soon as possible. If you happen to apply during your normal AEST business hours, some lenders can get back to you in as fast as 60 minutes. If the entire application goes smoothly, you can have the money by the end of the day. Take note that inter-bank transfer times might have a tendency to bottleneck the speed at which the money enters your account. If you are planning to apply for a secured loan, make sure you prepare all of your personal documents in advance since this will accelerate your application procedure.

Perks of Applying for Secured Loan

When you apply for a secured loan, you can see to it that lenders will treat you with utmost customer service. This is because they abide by the standards of responsible lending, thus you can guarantee that they won’t take advantage of your financial incapacity. In fact, they will help you get back on your feet, so you can enjoy financial freedom.

How to Apply for Secured Loan

Once you made the decision that you will apply for a loan and use your car as collateral, here are the steps that you should undertake:

Step 1:

Scroll up to find the loan calculator. Choose the amount you want to borrow and the repayment period that you desire. Click ‘apply now’ and start your online application form.

Step 2:

Fill up the application form. Once you are done, the lenders will process everything and all you have to do is wait. They’ll get back to you with the result of the application after a few hours.

Step 3:

If your loan application is approved, the lending company will contact you. They will send you an agreement and you need to carefully review it before you sign. It is very important to familiarize yourself with any additional charges that you need to pay when you fail to repay the loan on time.

Step 4:

Once the lending company has your signed contract, they will transfer the money to your bank account. Take note that inter-bank transfer times might take a little longer compared to regular transactions.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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