If you’re wanting to borrow money, you agree to pay it back. A lender wants to be sure that you do pay it back, after all, they’re not just giving you the money. That’s where collateral comes in. It’s called securing a loan. You agree that the lender can take something you put up as collateral, such as your paid off vehicle, and then they sell it if you don’t pay back your loan.
Title pawn loan companies work that way. But, if you’re going through a difficult time, your collateral can make it possible for you to get a loan simply because the lender takes less risk. And, it also means you could get a better rate.
How does collateral work?
As already stated, lenders want to get paid back for the money they loan out. That’s how they stay in business … and can help you right now. Legal action gets expensive so your collateral is used as a safety valve. They are not in business to own automobiles, for instance, after all, a lender is in the loan business not auto business. But, it is a way for a lender to be assured that they won’t lose all of their money.
If you put up collateral when you land a loan, a lender has the right to take your collateral if you stop making your payments. Bottomline, if you make your payments as you agree to, everything is rosy for both you and your lender!
Can my car or truck be used as collateral?
Assuming that your vehicle is paid off and you have a free and clear title from your state of residence, then the answer is yes, your car or truck can be used as collateral.
1-800 NewRate, will guide you through the process to discover the value of your car or truck, then establish other simple criteria needed to quickly help you get a consumer loan.
What if your credit score is not the best in the world?
There’s good news if you have bad, slow, or no credit. A collateral loan, also known at 1800NewRate as a consumer loan, is perfect for people who feel that their only option for extra money is to go to a title pawn loan company.
At 1-800-New Rate your interest could be significantly lower than a title pawn loan company and your payment can be significantly lower as well. There are other great benefits offered by 1-800-New Rate … to find out what they are simply call them at, you guessed it, 1-800-New Rate. An experienced and friendly credit specialist can help you get out of your title pawn loan, or even help you acquire a new loan. Why not call and find out how, now?
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