Secured Loans Vs. Unsecured Loans

Do you need extra cash for a family vacation to go to Albuquerque, New Mexico and you really do not have enough funds to get yourself the nice treatment that you deserve? What is on your mind right now? Could it be getting a loan for that dream vacation? It might not be such a bad idea.

A loan is a financial contract in which one party (that is the lender), agrees to give the other party (that is the borrower), a specific amount of money which has a due date to be paid back by the borrower. The payment of loan attracts interest. Interest rates differ per lender, but it is usually agreed on by the two parties. Every lender has conditions in which they lend money out to people.

Loans exist in various forms, but there are two main types which are secured loan and unsecured loan. Our main subject here is the secured loan. Of course, the main difference between the secured loan and an unsecured loan is making use of your asset as a security to obtain the loan whereas for an unsecured loan you do not have to make use of your asset as a security to obtain the loan.

A secured loan is a loan in which the borrower pledge some assets which could range from a car, real estate, a hotel, a warehouse, office buildings, machinery and factory equipment, jewelry and so, to serve as a collateral to obtain the loan. The assets pledged now becomes a secured debt owed to the creditor i.e. the lender who gives the loan. The creditor, by default of the borrower, takes full charge of the property and may sell it out to get the money he lent out to the borrower.

Secured loans are of a better advantage because the interest rate attached to it is always low compared to that of an unsecured loan. Also, the time for a repayment is always considerate by the lender to suit the borrower. It is also an advantage on the part of the lender because the property can be sold off if the borrower does not meet up to the agreed payment or defaults in a way that the lender does not get what he gave out, he could sell to get his full payment.

A car title loan in New Mexico is one of the best ideas to obtain a loan to give yourself and family a nice treat if you do not have enough fund. A car title loan which is a short term loan and a loan for a small amount of money, do not require a long process in its mode to obtain it. To get a car title loan, you give the lender the title of your vehicle, a token is also paid to obtain the loan. A car title loan becomes risky when you cannot pay back the money borrowed as the lender takes full ownership of your vehicle.

An Auto Title Loan in Albuquerque is based on Qualifications

Are you going to head to an auto title loan lender for extra cash in Albuquerque, NM? Is the cash a necessity or for something extra like taking your family to the Albuquerque Biological Park or maybe taking a fun and educational trip to the Albuquerque Museum of Art and History? The title loan lender is not going to stop and ask those kinds of questions, it is not a loan requirement. Banks and credit unions will want this information, as their process is much different.albuquerque

What you will use the money for or why you need it so urgently are not questions which apply to an auto title lender. There are no intrusive questions which apply to the cause of the financial emergency. What a title lender wants to know is based around the payoff. Because these lenders work with what are normally “riskier” applicants, the payoff is the focus for the application.

  • What condition is the car in? Since the title loan is secured with the title to your vehicle, the value of the vehicle is extremely important and an evaluation will be done by lender provided appraiser. The auto title loan lender will need your vehicle on the premises in order to process the application.
  • Do you own the title clear out? Bring the title with you. Your title will not work if it belongs to another party or if there is a lien placed on it. The title lender needs to protect their interest since this is their only way to collect if the loan goes into default.
  • Do you have your New Mexico driver’s license with you? There are many factors which relate to this qualification. The photo ID lets the lender know who they are working with and that it matches the owner listed on the title.
  • Show proof of employment. Even though the loan is secured with the pink slip, a lender will ultimately prefer payback in the form of money. This information gives the lender that you have the means to pay off the title loan.
  • Bring in a current utility bill to prove your residence. Often times a license will not have the most current address. Since utility bills are paid each month, you will need to provide the most recent one.

A bank’s application involves pages of documentation and questions to answer. The approval process may takes weeks and include an interview with the loan officer to find out more information. An auto title lender will not waste your time; as long as you bring in all the qualification information, once your car is assessed, you will know right away whether or not your application has been approved. Imagine driving away with the money in your pocket in what could be less than an hour! Fast money is simple when you use an auto title loan in Albuquerque, New Mexico.

Car title loans Albuquerque lends you the money equal to the selling price of your car in current market. That is why auto title loans is able to provide a larger amount than banks. How much money we loans you depends on your car’s model, mileage, make, year, style. You provide the details of your car online and we send you a pre-approval message mentioning the exact amount we can loans you. It is a hassle free process, where you know the amount you can obtain before you get it.