Everyone I should think has an idea of what a loan is. Most people have at one time or the other gotten one kind of loan or the other, either from the traditional financial establishments or from friends and family. Regardless of where the loan is from, it is still a loan.
There are basically two types of loans. There is the secured and unsecured loan. These are the broad based classifications. Under these, you would find other types like personal loans, payday loans, pink slip loans, business loans, mortgage, auto loan etc. Our focus here today is personal loans and to be more specific, secured personal loans.
What are secured personal loans?
There are three words there the first being “Secured” and the second being “Personal” and the last “Loans”. We already know what loans are. They are financial aid given to a person or persons with an agreement to have such money returned to the lender within an agreed period. There could be an interest or charge attached to it or not. A personal loan is therefore such financial help given to an individual. It would be said to be a secured personal loan if the individual has to put up collateral for the loan.
Just to be clear, collateral is anything of value that you give to a lender to assure the lender of your intention to repay the loan. The agreement is usually that should you refuse or be unable to repay, the lender can take full possession of such an asset in lieu of the unpaid loan.
One of the most popular secured personal loans available today are pawn loans. An example of this is car pawn loans. A slightly different variation of car pawn loan that we would look at is car title loans.
Unlike car pawn loans where the car has to be deposited with the lender, in a car title loan, the lender simply has to give the lender the tile to the car and maybe a spare set of keys for the car. You are then free to use your car as you usually would while spending the money that you got from the lender.
Because of the nature of this loan, it is easy for people with bad credit to qualify for it. The lender would not be overly bothered about a bad credit score since they would have the title to the borrower’;s car and can therefore recover their funds if the borrower fails to pay back as at when due.
Car title loans can come in very handy when you need emergency cash. In many cases, you can get the funds you need within an hour of applying. Once you have all the documents required, the rest is a breeze.
Whenever you have an emergency and need some cash to take care of the emergency, take advantage of a car title loan. Needless to say, make sure you apply for an amount you can easily pay back to avoid the repossession of your car.