The answer to this question is yes, you can use your car as collateral for a loan. In a situation where you borrow money through a credit card, then there would be absolutely no need for collateral. This is basically Because credit cards are forms of unsecured loans where credit is given to the customer in exchange for just your word of repayments. This type of loan has absolutely no form of cash involved but in a case where you need physical cash and you need it urgently, then you would require collateral and this is where loaning with your car comes in. Since collateral is needed to secure a loan, many people opt for using their cars as one.
Title Loans
Title loans are very similar to payday loans but you can borrow a significantly higher amount of money using them but before you can take this loan, you would be required to check your cars insurance policy. Basic insurance policy isn't usually accepted by lenders.
If you have proper insurance for your car, your lender will require you to make a call to add them as a beneficiary of your insurance policy. So in a situation where your car is wrecked, your lender will make sure that they get their value back.
When you hand over the title of your car to a lender, the title loan company will then sign the title as a lien holder. That way, until the debt is completely repaid, they would have right over your vehicle. with these restrictions, you cannot sell your car until your debt is completely repaid.
Although this is a good way to get quick and easy money, it can be quite expensive to pay off and you stand a high risk of losing your vehicle.
find out more on title loans here >>> https://investinganswers.com/dictionary/c/car-title-loan
