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Are you in need of cash but have a history of bad credit? Traditional loans from banks are not an option and you don't have a credit card to get a cash advance. Most lenders will not give a loan to a high-risk borrower, and an unsecured one will charge unfair interest rates. But you can still get a secured debt at a lower interest rate even if you have bad credit by using your automobile as collateral and applying for a vehicle equity loan. Borrowers who are putting their cars up as collateral for equity loans, are able to borrow up to the value of your vehicle. The law imposes interest rate caps on small loans up to $2,500, but it's also possible to borrow more than $2,500, if the collateral vehicle has sufficient value. In this situation, lenders will typically charge you a higher interest rate. The state law structures vehicle equity loans, so this will vary from state to state. These loans are secured by the auto title. That means if the borrower defaults on their loan payments, their vehicle may be repossessed and sold by the lender. Equity loans are usually considered subprime because they cater primarily to people with bad credit or have a low income, and they usually have higher interest rates than traditional lenders. How Vehicle Equity Loans Work The lenders may require proof of income or perform a credit check. Usually bad credit is not a deal breaker when applying for vehicle equity loans. But the lenders have to ensure that the car will cover the cost of the debt, should the borrower default and not be able to make their payments. If this happens, the lender will have to repossess the car and sell the car to cover the debt and the costs associated. This is why borrowers usually get an equity loan for up to 50 percent of the cars value. You must provide proof that you own your vehicle when you apply for a vehicle equity loan. Then the lender will do an assessment to find the value of your car by taking into consideration its wholesale price. The lender then decides how much of that value, they are able to lend in cash. It is usually around 50 percent of the vehicle's value, but it will vary from lender to lender. Finding a Reputed Lender When you do apply for an equity loan, make sure you find a reputable lender. Avoid the ones who use unethical lending practices aimed at getting desperate borrowers into further debt which will only harm their credit score further. A good lender will offer flexible payment terms and complete confidentiality. If you apply online make sure to use a secure interface, where you can safely submit your personal information. Most will also allow you to apply by phone. If you're in need of emergency cash, your car could be your biggest asset. An auto equity loan can get you cash in hand within a few hours of approval. Use an auto title loan to improve your credit score and regain control of your finances. Do 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. Visit www.123fundme.com to learn more.
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