How can I get a loan on my car from a reputable bank?
darinaras asked:
I lost my job, I am behind on my rent, and my credit is extremely bad due to a divorce. I am trying to find a way to get a lien on my car, which I have clear title to, for one third it’s value. I know there are auto title loan companies that do this, however I’ve researched and found out they are extremely high interest rates (300%apr on average), they don’t offer enough to get me out of debt, and they usually end in repossession of the vehicle. How can I get a secured loan from a reputable bank using my car as collateral?
Francisco
I lost my job, I am behind on my rent, and my credit is extremely bad due to a divorce. I am trying to find a way to get a lien on my car, which I have clear title to, for one third it’s value. I know there are auto title loan companies that do this, however I’ve researched and found out they are extremely high interest rates (300%apr on average), they don’t offer enough to get me out of debt, and they usually end in repossession of the vehicle. How can I get a secured loan from a reputable bank using my car as collateral?
Francisco
Tags: Rent, Secured Loan, Title Loan Companies
March 4th, 2009 at 8:43 pm
Jamie
Have you checked with a bank or two in your area? Do you belong to a credit union?
Since it would be a secured loan, they might go for it even if your credit is bad. Extremely bad, very possibly not though.
March 4th, 2009 at 11:55 pm
Lois
Try lendingtree.com
I had a similare situation and was able to get a loan against the car for 25% of its kelly blue book value. Rate was high though, I think 16%. After a year though I was able to refinance.
March 5th, 2009 at 3:54 pm
Micheal
honestly there are several companies that do autosecured loans such as citifinancial.. but with the derog credit.. it will not qualify. Believe it or not for the type of loan typical rate is 26.99 percent.. southern cali.. and the rate only goes down 1 percent if you secure it with your car. so.. yah not really a big difference. If you are a homeowner and your credit is between like 600 & 680.. you may still have a chance.. Then you have to take debt to income ratio into consideration as well. Just a lien will be costly with the loan sharks,, trust me my parents own that type of company.. and yes they do always usually end up in repo… I worked for them and now I work for citifinancial.. so I know..
I hear your story every day!Call your nearest office.. hehe.. u never know. Good Luck
March 6th, 2009 at 9:58 pm
Ruth
Poor credit car loans have been specifically designed for those people who have trouble getting credit due to their credit score being too low, if your credit score is too low then you will be seen as a huge risk and as such the lender will not take a chance on you and so turn you down. You can bring your credit rating back up by doing certainwebsite will also be able to offer you the best advice. However unless you know something about car loans and in particular what to look for when it comes to getting a poor credit car loan then you could end up paying way over the odds for the privilege of getting the loan.
March 7th, 2009 at 5:30 pm
Danny
I found interesting information about your answer & THE BEST car loans options here.
Good luck!