Christian Cash Loans With Car As Collateral
Christian cash loans with car as collateral will allow borrowers to get money quickly because, essentially, they are promising a lender that if a payment is late, he can keep the vehicle. These are generally last chance loans to pay for an emergency expense. To seek one for any other need would be reckless since the borrower can lose the car and lose credibility. They are sometimes called auto title loans, since the lender holds the title (proof of ownership) until all debts are paid. Obviously, people can only get a cash loan with car as collateral if they own the vehicle free and clear with the legal title in their possession. For immediate cash flow problems, these loans can help. However, it is only a win-win transaction for the lender who profits from steep interest rates, fees, and perhaps a "free" vehicle ---one that can he can repossess and sell to pay off what he is owed if the amount is in default.
This type of lending is a lure for a fast financial fix. Many unsuspecting borrowers are fooled because they choose to trust what is too good to be true. Scam artists thrive in communities where there are young, low-income consumers who think from paycheck to paycheck. A short-range thinker sees cash loans with car as collateral as simple and safe. The Department of Defense has initiated legislation to help protect soldiers and veterans against high-risk loans like these. For instance, lenders can give at a mere fraction of the car's market value with no legal recourse for the borrower. He could be locked into a debt he can't pay with a car he can't sell. This is why a cash loan with car as collateral is high-risk in nearly every case.
If a borrower finds himself putting up his vehicle in order to borrow, the utmost caution should be taken to seek financial counsel from a reputable credit counselor. There are many non-profit financial planners, debt consolidation counselors, and clergy who can help a debt-heavy consumer plan for emergencies and protect assets rather than risk them in a cash loan with car as collateral. Reputable lenders know that a well-educated consumer is less enamored with slick promises that often accompany cash loans with car as collateral. Unfortunately, wise counsel isn't always as popular compared to an easy fix. We do well to remember that wisdom often requires trust and patience. "Shew me thy ways, O LORD; teach me thy paths. Lead me in thy truth, and teach me: for thou art the God of my salvation; on thee do I wait all the day." (Psalm 25:4-5)
Blank check auto loans only work in a certain way to protect both the lender and the borrower. The borrower, once approved, fills out the check addressed to an individual owner, dealership, or auction house for the price of the automobile. A borrower may get approved for a higher amount than the blank check auto loan, but he is under no obligation to purchase an auto for the greatest approval amount. Lenders will typically approve a borrower's request for an amount they feel the borrower could comfortably handle with monthly repayment obligations. Whether or not the borrower uses the entire amount authorized is of no concern.
The interest rate on the blank check auto loan will not fluctuate unless the borrower is refinancing because lenders only allow a fixed interest rate at this time. The borrower and/or the co-signer is restricted to the amount of the payment of an automobile purchase. These transactions only have a small window of time for purchase, generally 30 to 45 days before the check becomes void. Funds are available for the purchase of a new or used car, truck, SUV, minivan, or motorcycle. The purchase can include the taxes, license, registration, credit insurance, extended warranty, service contracts, and any other costs normally associated with the purchase of an automobile.
The financial transactions clear if the purchase is made prior to the expiration date. The amount filled in on the document will cover the total cost of the auto plus miscellaneous expenses. Interest will be charged on the entire pre-approved amount of the blank check auto loan. Approval usually takes a few days, with the addition of 3 to 5 days when sent through postal mail to reach the borrower. If the borrower decides not to use the blank check auto loans only because he can't find the right automobile in time, he can get an extension. The expiration date can be lengthened to accommodate the pickiest of auto purchasers.
It is recommended that those borrowers in a hurry to receive their blank check auto loans, only pay what is absolutely necessary to have a rushed mailing of the documents. The psalmist tells us, "The wicked borroweth, and payeth not again" (Psalm 37:21). We must be careful about how much we borrow and that we pay back all we owe. Mailing fees may be added into the balance of the check and the borrower may find himself paying interest over the course of a few years on the expedited mailing service. Credit experts recommend a borrower negotiate first with the lender for interest rates, then negotiate the purchase price of a new or used car to fully receive all the benefits a blank check auto loan can offer.
Christian Sub Prime Auto LoanA sub prime auto loan is for people with bad credit and often can be an unwise investment. Being labeled as a sub prime borrower just means that the borrow has a poor credit history and could be unreliable. Therefore, lenders will charge higher interest and have different terms for these people, often making the lending process more expensive. This is not always the case, though; sometimes sub prime auto loans are offered through reputable institutions and offer a way for customers to improve their credit history. However, because they are traditionally offered to applicants will poor credit, many offers for these types of loans have fine print that end up costing the applicant hefty fees or interest rates.
Those who have poor credit history and need to apply for this lending in order to receive financing for a car, there are some tips to follow. First of all, just because one's credit is not perfect does not mean he or she has to take whatever rate the dealership offers. Applicants can find a sub prime auto loan through a bank so that at the dealership, financing is already secured. This is a good idea for consumers needing to borrow funds because it gives them more control over their terms. Second, when applying, car owners need to make sure and determine the best price to spend on a car based on the value of the deal not on the amount of the payments. One way dealerships make money off people applying is by giving them a car with an inflated price, but making the payments look attractive. When choosing cars to finance with sub prime auto loans, pick one that is three to four years old. This will insure that the car still has a number of reliable years left on it and a car a couple of years old is often the best value.
A car payment is an excellent way to build credit. By applying for a sub prime auto loan, car owners can begin the process of repairing their credit so that in the future loans can be secured at the best rates and the best terms. Sub prime auto loans provide the opportunity to purchase a car in spite of a bad credit history, and the opportunity to make scheduled payments in order to improve that history. Those who agree to the terms through a reputable company should make sure to get the most of the opportunity. "There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up. He that followeth after righteousness and mercy findeth life, righteousness, and honor." (Proverbs 21:20-21)
Obtaining a low income car loan is the easy way for people with low-paying jobs to buy an automobile. Earning a low income means not having a lot of cash at the end of every month, and taking on the added liability of a vehicle payment may seem unwise or impossible. However, low income car loans may actually help individuals and families with their finances if they go about them in the correct way and with the correct attitude.
Many companies offer low income car loans to families that meet the income guidelines. Depending on family size, an income of about $30,000 or less is usually applied. These loans tend to offer lower monthly payment options that conventional loans provide. This makes them especially appealing to people with low incomes. However, low income car loans will likely carry a higher interest rates than conventional loans. This provides a kind of safety valve for the lender in case the borrower is unable to pay back the money according to the terms. Experts advise borrowers to apply for the smallest possible amount of money to buy a vehicle. This may mean settling for a car that is not as nice in terms of features and so-called bells and whistles, but it will be worth it when the bill comes. "But godliness with contentment is great gain," (1 Timothy 6:6).
The easiest way for someone to obtain a low income car loan is to speak with a representative at his or her bank. They already have much of the financial information on hand and they will do their best to get the money for a vehicle. However, a borrower will need to do some homework before completing the paperwork. For starters, they should know how much they want to borrow for a vehicle. They should also fully understand all of the rates, fees, and additional charges associated with the agreement. In addition, consumers should be aware of any penalties that could be levied in case of late or missed payments.
Also Christian borrowers ought to think long and hard about whether a low income car loan is even necessary. Maybe money can be set aside each month until enough is saved to buy a vehicle. Because of the interest rate alone, low income car loans will end up costing more than buying a car without financing. As always, sound counsel should be sought when making big decisions and long-term consequences should be considered.