Car equity loans can be compared to home equity loans except that instead of using your home value, here you use your car’s value and pay interest on that.

A car equity loan is a little different from a car title loan even though on the face of it, these both may appear to be the same. While they have many similarities, the difference is that in car equity loans the lender refinances the existing car loan.

How Does an Auto Equity Loan Work?

Car equity loans are based on the equity you hold in your vehicle. This is the amount you get after subtracting the remaining existing car loan from the current value of the car. You need to have a clear title on the car. A lender might not entertain you if you do not own your car outright.

The amount of loan depends on the lender. However, the borrowing amount is never the complete value of equity. Your vehicle is the collateral in these loans. Hence, you are always at a risk of losing your car in case of a default.

The lender has the right to repossess your car and sell it to recover his losses. That said these loans usually come with a lower interest rate as compared to car title loans which makes them a slightly better option.

Features of a Car Equity Loan

Car equity loans are a popular option with borrowers in need of quick short term cash. They have an easier chance of approval that is fast paced. These loans also provide large maximum limits based on fair market value of your car. Here are some key factors associated with car equity loans.

1. Predictable Loan Amounts

States have closely guarded rules on the borrowing amount as based on the fair market value of the car. This makes it easy to apply for a loan as you know the exact amount you can qualify for.

You can get an auto equity loan without the risk of being cheated of a fair value from the lender, and its worth shopping around to find the best online lenders. The state dictates the maximum amount of money that can be loaned to a borrower. You just need to make sure to read up on the state rules.

2. Collateral

Car equity loans are generally offered by private institutions who want to reduce their risk as much as possible. Hence, loans are offered only on fully owned vehicles. This helps the lenders complete a quick approval process and grant loans to the majority of applicants.

3. Repayment Period

These loans come with short repayment period. People try to look for shorter repayment terms in order to pay off their loan as quickly as possible. Short term loans are always less expensive than long term ones in terms of interest amount.

However, you need to be careful to repay the whole amount on time because the APR of interest is usually high in car equity loans which can prove to be very expensive. Many lenders offer to extend the repayment period which is a big advantage.

4. Quick Approvals

Most lenders have a quick approval process and a faster loan disbursement. In some cases you can have the loan amount in your bank as quickly as within the hour.

Car equity loan providers also have physical locations in many states where you can apply for a loan, get instant approval, and drive away with the cash. Just don’t go buy a bunch of shoes you don’t need with that cash.

You are not Cher from the movie Clueless!

5. Car Title

Auto equity loans work in the same way as car title loans. You can continue the use of vehicle as normal. However, the car title is held by the lender because it is used as collateral.

You can drive your car as normal once you have the loan amount. You just need to make sure that you never default on the loan payments. A lender always has the legal right to repossess your vehicle and sell it to cover his losses.

Advantages of Car Equity Loans

There are multiple benefits of car equity loans as stated below:

1. Flexible Repayment Period

There are many lenders who will give you the option to extend your loan for up to a year. This can come in handy when your financial situation is not looking up. It also prevents you from losing the title on your vehicle for a couple of months till you can come up with the loan amount.

2. Quick Approvals

There are a number of emergencies where you need quick cash such as medical emergency. Car equity loans are a salient option when you cannot borrow from friends and family.

Many lenders have 100% online presence and work round the clock. You can collect cash from their physical locations instantly after your loan gets approved. Lenders pride themselves on their fast approval and efficient loan handling process.

3. No Credit Check

The best part about a car equity loan is that lenders do not perform a credit check. You can get a loan even if your credit score is poor or you have no credit history at all.

Lenders use your car as collateral and are secure in the knowledge that they can sell it to recuperate any losses. Though if you drive a car like that beat up one in Trains, Planes, and Automobiles they will not be interested in that! To this effect some lenders might require GPS or starter interrupt device installed in your vehicle.

Frank Martin in The Transporter certainly would not be interested in that!

4. Better than Traditional Lenders

Traditional lenders such as banks and other financial institutions conduct extensive checks in your repayment history and require an average to good credit score to consider giving a loan. The approval process can take weeks and might result in a negative reply.

Car equity loans are better in terms of quick loan disbursals and easy repayment options. However, these loans tend to have a higher interest rate than traditional loans.

5. Small Loan Amounts

You can get loans as small as $100 to be repaid within 15 days in car equity loans. These loans make it easy to get through the week when your paycheck gets delayed or there is an emergency.

Final Thoughts

Car equity loans require vehicles that are fully owned. You need to have some equity in the vehicle to qualify. These loans can come in very handy if you are in need of immediate cash and have a poor credit score.

However, like with any type of debt, you need to be responsible and pay the loan back in full on time. Otherwise, you might incur significant penalties and high interest charges.

Title Loans For Cars That Are Not Yet Paid Off

Car title loans present a pragmatic way to quickly get out of a financially difficult situation or an emergency. Car title loans when still making payments are available – and there are lenders available that can take your application. Read more to find out how this works. 

The approval is swift and you can receive money fast. In fact, many lenders offer same day cash wherever possible.

Title loans require your car title as collateral. Many lenders will issue the loan only if you have a free and clear title to your vehicle. However, there are some lenders who might offer a title loan even when there are a few installments left from your car loan. Here’s how!

How Do Title Loans Work?

Auto title loans use your vehicle’s title as collateral for the loan. These loans are usually sought after by people who have bad credit or require quick funds.

The speediness of a car title loan depends upon how quickly you can furnish documents for approval. To find a lender see our list of top title loan companies!

Once you apply for a title loan, the lender values the equity you hold in the car and bases a loan amount on it. You can walk away with a loan the same day if you agree to the loan terms and interest rate. Loan approvals are quicker when you have a free and clear title to your car.

What if the Car is not Paid Off?

You might need urgent cash even while paying for monthly installments on your car. However, do not let that stop you. There are many lenders who can provide an auto title loan even if your car is still being financed or you have a few payments left.

Car title loans are based on the value of your car or the equity you hold in the vehicle. For a higher loan amount, you will need a car that is of high value. Likewise, you might be approved for a greater loan amount if there is only one or two monthly installments left on the vehicle.

You might have a good amount of equity in your vehicle depending upon the payments you have already made. A lender can increase the loan amount to cover the remaining installments.

This way the car gets a free and clear title to be used as collateral. This can actually come in helpful when you have some car installments remaining with no financial means to pay them off.

Buyout of a Title Loan

There are some lenders who can help you with your current title loan as well. There are a number of circumstances that can make you want another title loan lender.

In such cases, your current title loan is refinanced with the other lender. You get new loan terms in this process and a new lender. However, most lenders require title loans to be current. You might not qualify for a refinance if you are not up to date with payments.

Benefits of a Title Loan

You might need fast cash for a number of reasons ranging from unexpected bills, surprise expenses, or medical emergencies. Not everyone has the emergency funds to cover unexpected cash requirements. This is where title loans come in helpful.

1. Easy Process

These loans are quick and convenient. This is one of the reasons why most people facing a medical emergency prefer these loans. The approval process can be completed as quickly as within 10 minutes. You can essentially drive away with the cash within an hour of walking into a lender store front.

 

2. No Credit Checks

This is another major advantage of these loans. You might not qualify for a traditional loan with a bad credit score or poor credit history. However, car title loans use your vehicle as the collateral and do not conduct credit checks. You can qualify for decent interest rates if you prove that you have a lucrative source of income.

3. Driving Privileges

Unlike car pawn loans, you get to drive your vehicle. Your car’s title is used as collateral and repossession is invoked only when you fail to make repayments. Auto title loans are perfect for people who depend on their vehicle for their livelihood. You do not have to compromise on your conveyance with car title loans.

4. Cheaper than other Alternatives

There are not many alternatives when you want quick cash and have a bad credit score. You may charge the expense to your credit card with a higher APR or take up a cash advance. Both, these options are usually more expensive than car title loans.

5. Pay Current Car Loan

Not having the money to keep up with auto loan payments can be extremely stressful. It can be very difficult when you are going through financial hardships. The idea of losing your car to an auto loan provider can lead to sleepless nights.

A car title loan can help you get out of this fix temporarily by adding the car loan amount to your title loan.

This way you get to pay off your car loan and get rid of any mental burden. Car title loans come with easy repayment options as well. Most lenders will offer a repayment schedule at the time of loan disbursal. This schedule helps you plan your finances better.

How to Choose the Best Lender?

If you want convenience then applying online is the best option. You can apply to multiple car title loan providers at the same time and compare individual rates.

Do not accept the first loan offer you receive even if your car is not paid up fully. There are many lenders who provide competitive rates and you should shop around for the best ones.

Choose a lender who treats you as a person and not a profit making statistic. An ideal lender will not charge prepayment penalties and make the funding available as quickly as possible.

Look for loan providers who have a high approval rate and do not charge for application. At the end you should settle for the best repayment terms and interest rates.

Key Attributes

A car title loan can be helpful when you need quick cash. You can qualify for these loans without credit and use your car’s title as collateral even when there are installments remaining on the vehicle.

Car title loans require a proof of residence and valid government issued identification for application. In some states you might also have to show your proof of income in the form of a pay stub.

How to Get a Loan With No Credit History

Many of our customers visit our site looking for car title loans with no credit check. If you have an impaired credit history and are looking for loan companies with low monthly payments for a online car title loan offer, you have come to the right place.

If you are in need of quick cash to pay off debt, an unforeseen expense, or to cover the price that comes with a personal or medical emergency, chances are good that you are looking to take out some kind of loan. As you look for a loan, you will likely find out that having no credit history can really get in the way of your ability to take out some of the most common types of loans. That will make it harder for you to find the money you need when you need it.

So, what are your options when you need to take out a loan but do not have the sufficient amount of credit history? It depends on several factors that you will have to apply to find out for, but generally not having credit history will not keep you from taking out a few specific types of loans. To learn more, let’s go over some of the most popular types of loans that are available to those with no credit history.

Completely Online Loan Companies 

If you are looking for a way to get a non-traditional loan, one option to consider is peer-to-peer lending forn online title loan no credit check. With peer-to-peer lending, you will borrow money from individuals who crowdfund loans for profit online. These types of loans typically feature lower interest rates than traditional bank loans. You can complete the entire process online which makes it fast and easy. On top of that, because you will be looking for a loan on a massive database, you can look for loans or lenders that perfectly match your needs and financial outlook. While some peer-to-peer lenders do require credit history and a certain credit score, there is much more flexibility in this type of lending compared to traditional loans from a bank or more established financial institution. Thats a main downside of p2p lending for bad credit – usually you need to have good or great credit in order to qualify. 

If this sounds like an attractive possibility for you, consider taking a look at popular peer-to-peer lending sites such as Lending Club and Prosper.

Online Lenders with No Credit Check

Because online banks don’t have to pay for the upkeep of a brick-and-mortar storefront, they are typically able to offer lower rates on their loan products. This lack of upkeep payments also allows online lenders to take what may be considered a larger financial risk such as lending to those with no credit history.

When considering a personal loan from an online lender, it is wise to shop around for a multitude of options. Interest rates can vary greatly, and it is always to wise to see what options are available to you. See our guide on title loan lenders to help you find the best title loan company. 

Repayment terms on online lenders can also be flexible depending on which loan and lender you choose, so make sure you read the fine print and choose a payment term that works best for you. Many online lenders are available by doing a quick google search – often its best to find a lender near you and in your state as they understand the laws and regulations of your particular locality. 

Credit Unions

Credit unions are known for being more willing to take on the risk of lending a small amount of money to people with no credit than banks are. Back in 2010, the National Credit Union Administration created the Payday Alternative Loan program, which is offered by credit unions. That means that you can now borrow between $200 and $1000 for a term of one to six months despite a lack of credit history.

What is important to keep in mind if you are considering this route is that some credit unions might not report successful loan payments to all three credit reporting agencies. That means that even if you successfully pay back your loan in time, you may not reap the benefits of building your credit. This won’t matter if you are just looking to get a loan with no credit, but if you are interested in building a strong credit score, you will want to take out a loan that can help you build your credit.

Car Title Loan Online With No Credit Check

Another potential source for fast cash at your disposal even if you have no credit is a car title loan. When you think about it, whats the point in obtaining a loan with a credit check when you have no credit history! Many online lenders offer loans near you at great low interest rates, so you can save on your monthly payment regardless of your credit score. That is, of course, if you own a car and have a lien-free car title. The car is the security for the loan, and the quality of your car depends on what loan options are available to you. Certain lenders accept older vehicles or provide title loans for salvaged titled vehicles.

Car title loans are quite simple. Basically, a car title loan means you are borrowing from a lender based on the value of your car. For many lenders, they’ll only consider lending to you if you have already paid off your car in full and own it outright. While some lenders do allow you to borrow on a car that you are still paying off, it is not entirely common.

Once the value of your car has been established, the lender will decide how much they are willing to lend you. Car title loans typically range between $100 and $5,500. They can, however, go much high and depending on your car, you could qualify for a loan up to $50,000.

While the amount you can borrow is based on the equity that you have in your car and the value of that car, do not expect to get a loan that is equal to the actual worth of the car. Lenders want to make it as likely as possible that they’ll be getting their money back, so they will lend you only what they can get quickly and easily in exchange for your car in the event that you default on your loan. The vast majority of lenders will offer you a loan equal to the trade-in-value of your car, that is typically between 25 percent and 50 percent of your car’s actual value.

As long as we are talking about the possibility of a default, it is important to note that some lenders will require you to give them a key to your car or install a GPS tracking device on your car so that they can easily locate and retrieve your car in the event of a default and subsequent repossession.

Now that you know some of the most popular loans available to those with bad credit scores, it is up to you dictate what kind of loan is best to help you pay for what you want or need. Taking out loans are always a risk. That fact is even more true when they come with the interest rates and risks typically attached to loans meant for borrowers with bad credit.

If you believe you are up to the challenge of paying these loans back, however, they could be just what you need to get your financial life back on track.

Car Title Loan Companies vs Title Pawns vs Pay Day Loans

It is important when shopping for a loan online to understand the difference between these loans. Sure all 3 options can provide you with fast cash in the form of a loan online and deposit those funds into your bank account. However each type of loan operates differently. 

A title loan is where the security in your vehicle is used as collateral for a loan, and while you repay your loan you get to continue using your vehicle. A title pawn the loan company takes possession of your vehicle until you pay your loan back. What this means is that your monthly payment may be lower with a title pawn as there is less risk to the lender, however if you decide to repay your loan early you may still be up for the full payment as part of the loan. You might be ok with this considering that a a title pawn can be obtained without the need for a credit check. So its like a title loan that don’t require a car!

A payday loan you don’t even need a vehicle, so can sometimes be an option for borrowers looking for title loans no credit check near me who have a vehicle that does not qualify for a title loan. See our list of lenders to find a loan from near you. 

Why Title-Loan.com for a no credit check online auto title loan

We are not the biggest operator providing car title loans however we like to think we are the friendliest! Contact us today to find out what you need to get started with a completely online title loan and we can find you a nearby location to apply for a loan today!