Car Collateral Loans: More Than Just Quick Cash

Quick cash loans can save the day, and so people make it a go-to option for additional funds when the needs strike. The best loans from financial institutions come with collateral, but the same concept hinders other borrowers to resort to other options. They don’t want to lose their property in the process, be it a house or a car.

Now, if you have decided that your car can serve as collateral, you can get quick cash without getting your hands off its steering wheel through OR/CR car loan or car collateral loan.

What is OR/CR Car Loan?

Car financing pertains to the various financial products that are offered to people who want to have a car but prefer a payment arrangement other than lump cash or a one-time payment. Car financing, also known as auto finance, is provided by banks, dealers, and non-bank financial institutions such as the leading car loan provider, Global Dominion Inc.

As long as you meet the eligibility and pass the assessment set by the lender, this product allows you to purchase a car from dealers or manufacturers without spending a huge amount of money in one go. Auto financing has served many businesses. It also helped first-time buyers or existing vehicle owners to get their dream car.

Key Benefits of Car Collateral Loan

Here the benefits that applying for this type of loan entail:

Quick cash without taking your car

In times of emergency, your car title can guarantee the money you immediately need. Cars have a high price worth of collateral, but you shouldn’t part with the convenience it brings by pawning the car itself. Through a car collateral loan, you still enjoy traveling while paying your debt.

Improved budgeting plans

Spending may come in huge amounts if an unexpected expense or crisis arises, and depleting your resources instantly to clear these away is not ideal. By taking an OR/CR loan, you avoid this situation by agreeing on terms of how much you pay every month. This allows you to use your money under monitoring and therefore enables you to save.

Builds good credit history

Credit history is essential in any financial transaction around the world, and it is on its way to being incorporated more visibly in the Philippines. So, if you have not built a strong credit standing or have none at all, loan approvals may be evasive to you. The best option, however, is applying for an auto collateral loan which can be approved without looking into your credit habits. And it also helps build a good credit history as long as you pay your dues on time.

What to do in applying for a collateral loan

Before tying yourself to a monthly payment, better do these steps to avoid financial troubles:

Check your financial resources.

The reason for getting a loan is the need for money. However, you must assess your financial capability to repay a debt before doing an application. The inflows and outflows of your income can indicate how much of a loan you can afford, which helps you avoid deeper financial loss in the future.

Get prequalified with various lenders.

There are many loan providers in the market be it banks or non-bank financial institutions. A good step in finding the loan offer most suitable to you is to get prequalified with various available lenders. You don’t sign an agreement right away with the first lender that offered you a loan.

Make a comparison of the offers. 

If you passed the qualification of the lenders, the next thing to do is compare all the offers. Evaluate the details and match it to your current situation and resources. This way, you set an expectation on what financial obligations you will face each month.

Collate the required documents. 

Collect all the documentary requirements for your application. This includes your government-issued IDs, certificates, and other legal papers to strengthen your application. Make sure everything is covered to avoid delays.

Submit a loan application.

Together with the needed documents, submit the official loan application. Ensure clarity when filling out forms and the accuracy of each data given to fast track the process.

Wait for the disbursement.

The processing of secured loans can take time so have patience after your submission of requirements. However, it’s also best to prepare your documents just in case there is a need for revision or update. If necessary, contact the loan provider for updates.