Are you in need of cash and do not have a way to get it quickly? Most lenders will not give a loan to a high-risk borrower, and an unsecured loan will charge you outrageous interest rates. But if you have bad credit, you can still get a secured loan at a lower interest rate by using your car as collateral and applying for vehicle equity loans.
By putting your car up as collateral, you can get an auto equity loan depending on the value of your vehicle. These loans are secured by the auto title. That means if you default on your loan payments, your vehicle may be repossessed and sold by the lender.
Vehicle equity loans are typically considered subprime because they primarily cater to people with bad credit or have a low income, and they usually charge higher interest rates than other creditors.
Vehicle equity loans are structured by the state law, which varies from state to state. Los Angeles law imposes interest rate caps on small loans up to $2,510. It's possible to borrow money in excess of $2,510, however, if the collateral vehicle has sufficient value. In this situation, Los Angeles lenders will typically charge you a higher interest rate.
When you apply for a vehicle equity loan, you must provide proof that you own your vehicle. The lender will then assess the value of your car, considering its wholesale price, and then decides how much of that value, they are willing to lend in cash. It is typically around 50% of the vehicle's value, but it will vary.
The lender has to ensure that the car will cover the cost of the loan, should you default on your payments. If this happens, the lender will repossess and sell the vehicle. The lender also may require proof of income or do a credit check, typically, bad credit is not a deal breaker when applying for vehicle equity loans.
When you need a higher-limit vehicle equity loans, contact a reputable lender like Wilshire Consumer Credit. They accept applications online or by phone. You could be approved in just a few minutes. They also offer flexible term options, so you have some choices on when and how you repay your debt.
If you need cash in a hurry, just fill in the form here. Apply for your vehicle equity loan today!