Need some quick cash but not sure what to leverage? Did you know you could leverage your car for cash? If you need some quick cash one way to do it is by leveraging your automobile. Here are some tips on how to leverage your car for cash that you may not know.
You Don’t Always Need Good Credit
If you have perfect credit you may not need to leverage your car but perfect credit is not a reality for many of us. Since you are using your car’s title as collateral, your credit score may not impact your ability to get a cash loan in the way it might in other financial products.
Make Your Payments
Since your car is securing your loan make sure are borrowing an amount you can reasonably payback. You don’t want to risk losing your car, so make sure you are using the loan in a responsible fashion. As with any loan, don’t take more than you need or you can payback and if you have concerns make sure you check with a financial advisor before accepting.
You Need to Own Your Car
In order to leverage your car for cash you need to have your car paid off (or very close.) This is because you are getting a loan based on the title of your car, so the title must be yours. While you repaying your loan you will still be able to drive your car as normal.
You Don’t Always Have to be Employed
Usually, proof of income is a must when looking for a loan but if you choose to leverage your car for cash the requirements may less stringent than with other loan types. This is because you are using your vehicle as collateral. This is helpful if you need some cash between jobs or are self-employed and have a hard time verifying income. Again, always ensure you have the means to pay back any loan before you take it.
Your Car Secures the Loan
With an online title loan; your vehicle’s title secures your loan. This means that instead of a home, credit score, or employment status; your automobile’s title is securing this loan.
The Amount you get depends on Value of your Car
The amount you can possibly receive by leveraging your car for cash can be up to 75% of the value of the car. The nicer and newer your car is, the more money you may borrow. While this isn’t going to be a massive six-figure sum, it can definitely help if you need quick small amounts of cash.
So if you need a quick small amount of cash for an emergency situation you may want to consider applying for an online title loan. When you leverage your car for cash, you can keep driving your car but use its title to guarantee your loan. As long as you know you will have the means to make your loan payments, it may be worth checking out how to leverage your car for cash.