In the United States, 78% of workers live paycheck to paycheck. This means that you likely fall into this category.
Try as you may, it’s just impossible to save up. This puts you at a huge disadvantage. Not only will you be unprepared for an emergency, but you’re also unable to achieve many milestones.
Thankfully, there are ways to get extra financial help so you can get ahead in life. For example, you can get collateral loans to get funding for something you really need to pay off.
Interested in hearing more? Then keep reading. We’ll tell you all about this type of loan, including how to find “collateral loans near me.”
Collateral loans are also known as “secured loans.” As the name suggests, these loans are backed by a guarantee: some type of collateral you put up. For example, you can do a car title loan, where you offer up your vehicle title as a backup should you be unable to pay your loan back in full.
Car titles aren’t the only things you can put up for collateral. Other things you can use include:
You can get collateral loans near me as either a consumer or a business owner. Even if you’re the latter, you can still put down your personal assets to get a business collateral loan.
Essentially, the lender wants something that’ll help them recoup losses should you default on your loan. The amount they’ll let you borrow will typically be much less than the value of your collateral. For instance, if your investment portfolio is valued at $100,000, then they might only let you borrow 50%, or $50,000.
The actual amount a lender will let you borrow will depend on the exact institution you apply at.
So you know what a collateral loan is now. But what are the advantages of taking one out instead of another type of loan? We’ll show you below.
51% of Americans have subprime credit scores and almost 20% have no credit history. If you fall under either category, then you might know how difficult it is to apply for things like loans and credit cards. Credit is king, and if you don’t have it (or it’s poor), then you’re in for a challenging time.
However, it doesn’t mean all doors are shut to you. It just means it may be a little harder for you to find the perfect loan for you.
What’s great about collateral loans is in most cases, lenders don’t care about your credit score. Because you’re giving them your assets as collateral, there’s no need for them to. Borrowers will be motivated to get their valuables back, so lenders trust that you’ll do your best to avoid them collecting on it.
When it comes to loans for bad credit, collateral loans are the way to go.
As you may have guessed, there are also unsecured loans. When compared to these, collateral loans have much lower interest rates.
Because you’re putting down collateral, this takes some of the risk away for lenders. This means they’re more comfortable loaning you larger amounts of money than with unsecured loans.
If you have no or poor credit, then a collateral loan can be a great stepping stone. When you show you can pay off a loan responsibly, this raises your credit score and open the door for more loan opportunities in the future.
Getting a collateral loan is very simple. First, type in “collateral loans near me” on a search engine. This will give you tons of results in a split second.
Take a look to see what’s available to you. Make sure you take the time to properly research each site, as not all lenders (and brokers) are the same.
Not only will they have their own terms and conditions, but they’ll also have varying reputations. You want to select a company that has an outstanding rapport with their clients. This is a large sum of money you’re dealing with, after all.
You should go with a company such as TFC Title Loans, as we have years of experience helping people like you get the money they need, quickly!
So what are the steps in applying for a collateral loan with TFC Title Loans? We lay them out for you in the next sections.
Everything can be easily done online. Just complete our online form and one of our agents will process it promptly. You’ll hear back from us within minutes on whether or not you’ve been approved for a loan.
After approval, you’ll usually have to submit additional documents. If you’re applying for a car title loan, then one of our representatives will also have to inspect your car. This will determine how much you can borrow in total.
When we make a loan offer, you can then sign the official document if you’re happy with the terms. You’ll then have the money in your account promptly!
As you can see, collateral loans are fantastic if you don’t have a great credit score or if you don’t even have one. While you do need to have some assets to put up as collateral, this loan option can be ideal if you know you can pay off the entire loan within the specified timeframe.
Have you been searching “collateral loans near me”? Then apply for one with us today. You can get money in your account in as little as 30 minutes!