Posted: Sunday, June 24th, 2018
The main difference between an auto title loan and an auto equity loan is that with an auto title loan, you need to have paid off the full value of your car. The auto title itself is held as collateral, allowing you to get more money than with an auto equity loan. With an auto equity loan, you can get a loan even if you don’t own the vehicle outright.
Should I Get an Auto Title Loan or an Auto Equity Loan?
Keep the following facts in mind before you make your decision:
- If you own your vehicle, and auto title loan will usually allow you to borrow more than with an auto equity loan.
- An auto equity loan is your only choice if you’re still making payments. They might have higher APRs than an auto title loan, but they are a way to get cash quick.
- With both loans, your credit score shouldn’t come into consideration. They’ll instead calculate the value of your vehicle to see how much you can borrow.
- Be sure that you’re aware of the interest rate on your auto title loan or auto equity loan, as they differ between states.
Turn to Green Light Auto Credit
Need help choosing between loan options? Contact Green Light Auto Credit at 800-200-5551 today.
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