Can You Borrow Against an Auto Loan?
The only way to borrow against an auto loan is to use the title as collateral. This is a very risky way of borrowing money. If you cannot pay the loan, you will lose your car. Moreover, the loan you receive depends greatly on the value of the car at the time you wish to take the loan. Before you even consider this type of loan, consider the following:
- You will have to assess the value of the car by checking the Kelley Blue Book, which is the best way to get an accurate value of your car.
- Also keep in mind that the approximate rate given for vehicles is up to half their value.
- Depending upon the state you live in, you may not be able to borrow more than $2500 against the value of your car.
- Your credit score will determine the interest rate you pay on the loan.
Collateral Loans Are Not Feasible in This Economy
Given these facts, it is not advisable to borrow any money using the title of your car as “collateral.” If you need funds right away, the best course of action is to apply for a payday loan. There are four top companies in which you can apply online today and receive the funds in your back account tomorrow. They are: Assurance Payday Loans, Borrow When You Need It, Downtown Money Advance, and Finish Line Payday Loans.
Why Should I Apply for a Payday Loan Instead of Borrowing Against an Auto Loan?
The most obvious reason is that you don’t need collateral, that is, you don’t have to put up the title of the car to get the loan. Second, regardless of whether you have good credit or bad credit, you will still qualify for a loan up to $1000.
What If I Need More than $1000?
Payday Loans can help you in this regard as well. You can renew the loan and pay the interest and fees only or you can renew the loan and pay the interest and part of the principal. Certainly, you can apply for more than the $2500 you would get if you used your auto title to borrow money. All you have to do is to apply to any one of the payday loan companies mentioned and apply online. You will be matched with a suitable lender. As long as you have income and a bank account, you qualify! Don’t put your car at risk for a loan you can easily attain through payday loans.