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How do use your car as collateral for a loan?
I have some debt and am thinking about using my car as collateral for a loan. How do I do it?
Will Baldwin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Using your car as collateral should be far from your first choice, but if you’ve arrived here there are some things you need to know. Because the terms of a car title loan put borrowers at such a disadvantage, some states make this practice illegal.
If you decide to process, you need to have positive equity in your car to be able to use it as collateral. Once you determine your equity, start shopping around for lenders. Some lenders don’t accept cars older than five or seven years. You also want to shop around for the lowest interest rates and most favorable terms of the loan.
If you have questions about this or need some expert advice on how to
reduce payments
, Jerry
’s agents are at your disposal. Jerry’s friendly agents are here to answer your questions and provide advice on the best coverage options. As your life changes, your needs change, and Jerry is ready to make those adjustments for you.
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- Gregory R.
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