Christian Vehicle Collateral Loans
Christian vehicle collateral loans may be one way to get someone out of an unexpected financial crisis. They may not be the best way out however, and there are a number of things a person ought to consider before diving in to such a business arrangement. There are a number of companies online that will loan a customer a certain amount of money for any reason as long as there is a clear title to a car. In order for a person to qualify for a loan of this kind, certain requirements must be met. "Therefore, my beloved brethren, be ye steadfast, unmovable, always abounding in the work of the Lord, forasmuch as ye know that your labour is not in vain in the Lord." (I Corinthians 15:58)
Vehicle collateral loans are based on a number of requirements. To begin, most companies offering such loans require someone to be at least nineteen years old, and some states require the person to be twenty-one. In most cases, the car, motorcycle, boat or truck must not be more than ten years old and clear title must be held by the person seeking the loan. Additionally, full collision and comprehensive insurance must be in place on the conveyance in question and the conveyance must be registered in the name of the customer seeking the loan. Also, the customer must have a valid driver's license and show a piece of computer generated mail addressed to the customer at the address provided on the loan application. Finally, the customer will have to give the loan company an extra set of workable keys to the auto so the loan company can easily take the car if a default on the loan occurs.
Vehicle collateral loans are usually never for the full amount of what the car is worth on the day of application. Rather, the loans are typically for about half of the car's wholesale value. Some companies use the Kelly Blue Book value which is a wholesale value to decide how to structure their vehicle collateral loans loan amount and some companies use their own resources to place a value on the vehicle. Of course, while some of this application process can take place on the phone, a person will have to bring the vehicle in question into an office so that the condition of the automobile can be assessed. Once the process is completed, usually a person can leave the office with a loan based on one to sixty months of pay back.
Vehicle collateral loans are also available to those who do not have clear title of a vehicle. These are called car title pawns and are based on how much equity a person has in the automobile at the time of the loan request. This kind of loan can be very tricky, especially if it is based on a car that was once financed new to the loan customer. For example, if a person buys a car new and finances most of the cost of the vehicle, the car loses about twenty percent of its value as soon as the car in driven off the lot. On a fifteen thousand dollar vehicle, this is a three thousand dollar loss immediately and if the customer only placed one thousand dollars down on the car, the owner is already "upside down" on the vehicle loan, owing more than what the car is now worth. As the car begins to depreciate as all cars do, the gap between what is owed on the loan and what the car is worth only widens. This all means that unless a car was bought used, when much of the depreciation has already taken place and the owner got a good deal on the used vehicle initially, no car title pawn will happen.
There are a few companies offering vehicle collateral loans that offer fairly low interest rates. Take for example one of the vehicle collateral loans taken out for a forty-eight month period. If a person would be so fortunate as to have sixteen thousand dollars free and clear on the title, that money could be loaned at an interest rate of six and a half percent. For some companies, there are no mileage restrictions and no model year restrictions. Of course, the shorter the loan period amount, the better the interest rates can be for the auto collateral loan offerings available for the consumer.
It is unfortunate to say, but those individuals who seek out such vehicle collateral loans are often the people who are least in position to pay them back. From the earlier description of such loans, a person who has nothing else to offer as collateral on a loan except a used car can easily get sucked into a downward spiral of more and more debt if the money from the loan is not used wisely. For example, if a person borrows money on equity from a car to pay off a higher interest rate credit card, that might be acceptable. If the money is used on a valid home improvement such as the remodeling of a bathroom or kitchen, this kind of loan could possibly pay for itself. On the other hand, if this auto equity loan is used for a vacation or new clothes or new television set, prudence would dictate that the customer wait and save his/her money and pay cash for such items.
Special Christian Auto FinancingSpecial auto financing can make it possible for individuals with no credit or bad credit to purchase a vehicle. Sometimes bad things happen to good people affecting their credit history. A person going through difficult financial times may have trouble making their payments on existing obligations on time. They may even have to file bankruptcy because of loss of income or for medical reasons. Businesses that offer special auto financing recognize that individuals have things happen to them beyond their control so they provide a way for financing to be possible even when credit history is poor. Many sites online guarantee approvals for individuals with bad credit and low credit scores. "O send out Thy light and Thy truth: let them lead me; let them bring me unto Thy holy hill, and to Thy tabernacles" (Psalm 43:3). A Christian would do well to take the matter of purchasing a vehicle on credit to the Lord for guidance and ask for help in making the best choices both for taking out a loan and for choosing the right automobile.
Persons who have been in the military may be able to find special auto financing online. There are no restrictions for being approved for a vehicle loan except that the person applying for financing will need to show proof of active service, the location of active service, provide a social security number, and the lender will probably check his or her credit score. Being in the military and having a good credit score will make it easy to be approved for a vehicle loan. In addition, lenders usually offer lower interest rates than traditional loans and have a flexible repayment programs. Lenders online make it easy to be approved through an online application.
Main qualifications for obtaining a vehicle loan include job verification and the customer can not be currently filing bankruptcy. A bankruptcy can be on credit history but it must be discharged or final before applying for special auto financing. Lenders will look closely at previous automobile loans listed on a borrower's credit report when considering the individual for a financial arrangement. A borrower should look over their credit history before applying for a loan. A low credit score could make a difference in the interest rate charged for a loan. Doing some credit repair may help an individual in raising his or her credit score.
Having financing approved before going to a dealership is best for the borrower because all that is left is finding the right vehicle for the best price. The dealership will not have to squabble with the lending department to try and get the borrower approved so being approved ahead of time makes their job easier. Special auto financing offers on the Internet promise to work with customers in helping them to acquire the funds necessary to buy the vehicle of choice and not having to settle for less than what is desired. Some lenders offer help with repairing credit and provide debt counseling services for those who qualify for them.
The best way to go about credit repair is to write to all three of the major credit bureaus for a copy of one's credit reports. The credit bureaus have a dispute form that a person can use to dispute any negative or derogatory information including just any information that is incorrect. It is not unusual to have errors on a credit report and the only way those errors will get corrected is if the consumer brings it to the attention of the credit bureau. Someone who is looking for special auto financing should engage in credit repair before applying for a loan. Credit bureaus have 30 days to answer any disputes sent by consumers. If the accounts in question are not answered by the creditors within 30 days the credit bureau is obligated to remove the items from the credit report.
Individuals shopping for a new vehicle may get discouraged if they are turned down for financing. Special auto financing is something that is offered by many sources on the Internet. Companies guarantee approval and guarantee low interest rates. They even guarantee approval if credit scores are low and customers have auto repossessions on their credit report. Individuals who are having difficulty buying a new car should consider doing a search on the Internet for other options. Some sources even guarantee fast approval by applying online for either a new or used vehicle. The best way to go about buying a new automobile is to get financing first and then go shopping. When a customer knows what can be afforded it helps them to choose a vehicle that matches with their financing. This eliminates the anticipation of choosing a vehicle that is not affordable and the disappointment of being turned down for that vehicle.
Christian lenders who specialize in special auto financing are trained to understand the needs of the consumer. In addition, lenders should understand the needs of a dealership so they can help the sales department move the inventory by providing the customer with financing options. Oftentimes the needs of the customer involve finding a monthly payment amount that he or she can afford on a vehicle. Customers who do not feel comfortable with the monthly payment set on a loan will probably not want to close the deal. Lenders who specialize in special types of loans need to have some knowledge about financial agreements and what a monthly payment amount might run taking into consideration the total dollar value of the vehicle, the amount of time the loan will be set for and the interest rate on the loan. Understanding how to calculate a monthly payment might help to give the customer valuable information to make a good decision that benefits all parties involved.