Emergency situations could arise an urgent need for money, but you do not have the money to finance the problem. You would have to take a loan, maybe from a bank, co-operatives, unions and other financial institutions offering lending services. Taking a loan is a very difficult process, and for some, it is an impossible task to carry on, as lenders would want to know the financial standing and credit status of the borrower. Hence, people who fail to have an impressive credit score will find it near impossible how to get salvage title loans Los Angeles or anywhere in the US. Coupled with this fact, is the issue of collateral. Borrowers must own an asset which should be in worth and value, higher than the loan being acquired.
As has been observed, some borrowers do not have assets for collateral, in terms of real estate or landed properties, but have their cars. Would the lender accept their cars as collateral? Yes. There are lenders who give car title loans to borrowers. They do this by collecting only the title document of the car while allowing the borrower to drive his car while he repays his loan.
What if your car has a salvage title, will you still be able to get a loan with it? Salvage title cars are cars that branded as damaged or a complete loss by an insurance company. Salvage vehicles are generally cheaper to buy because of the sense of loss of value. Getting a salvage title loan is not an impossibility. It’s just that lenders are most times reluctant to give loans to people with salvage title cars. If they do, the interest rates charged, and payable by the borrower is usually high. The lenders must inspect and value your car and give you only a total of 50% of your car’s worth in loans. Thus, using a salvage title car as collateral will mean having less money form the loan than you expected.
Getting salvage title loans is most times more difficult. The borrower will be required to fulfill the following requirements for the salvage title loan application will be granted.
· The original documents establishing the borrower as the owner of the car, also known as the car title, will have to be handed over to the borrower as collateral.
· The borrower must be at least 18 years of age.
· Have a valid government issued ID or driver’s license.
Do not allow the salvage title of your car prevent you from getting a title loan. Obtaining salvage car title loans is very possible, you just must work harder to find the right lender who is willing to offer you a loan, even with your salvage title.