When you are in need of cash for an immediate emergency, a business venture, or any other plan that costs more than what savings you have, you can turn to friends, family, or co-workers for help. Alternatively, you can always trust banks and financing companies to provide you with a loan.
Kinds of Loans
You may already be familiar with the basic forms of loans such as mortgages, student loans, auto loans, personal loans, and others. Do you know you can also get a loan by using your car title as collateral? You can even get a loan simply with a signature and a promise of payment. These loans are called title loans and signature loans, respectively.
Title as Collateral
For more specifics, a car title-backed loan is simply a form of collateral loan. Instead of using personal valuables or real estate property, as is usually the case, you can use your vehicle’s title as collateral. Once granted, your loan will contain an amount based on the value of your vehicle. Once you pay, you regain ownership of the vehicle. Otherwise, the lender will assume ownership.
Other Accepted Titles
You can still use your vehicle for as long as the loan is active. You can even use the titles of trucks, motorcycles, motor homes, or even ATVs and snowmobiles as collateral. What’s more is that lenders ignore your credit score since your vehicle’s value is what matters.
Signature as Collateral
On the other hand, instead of a vehicle title as collateral, you can simply sign and promise that you will pay the money you borrowed. This type of loan may be alluring, but it has certain nuances you ought to know about. A signature loan may have higher interest rates than other loans. Lenders of signature loans also look at credit history and income to determine the approval of an application.
You can get signature loans and title loans right in Provo. You can ask for referrals from friends and family to search for a lender. You can also search online.