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What is a Car Equity Loan?

If you need financial assistance, but are unable to get approved for a traditional loan because of bad credit, then a car equity loan may be the perfect solution. Car equity loans are a form of secured loan available to people with great, decent and sometimes, even terrible credit.

These loans are perfect for those looking to raise money quickly, as they can often be approved and funded within the same day of being requested.

City Loan makes it easy to get the money you want today because we offer one of the quickest, easiest application processes in the industry. The best part about getting an equity loan from City Loan is that you can complete an application and get the cash you want in mere minutes!

To get a loan from us, simply:

  1. Apply online by filling out our easy application form, or over the phone by calling us now at 1-888-238-9085.
  2. Submit your relevant information (the car’s pink slip, your income verification, etc.) for our review
  3. Get the cash you want the same day!

It may sound strange, but it really is that simple.

 

How do Car Equity Loans Work?

Car equity loans are an affordable form of personal loan that you get to pay off over a series of monthly installments, making them an extremely convenient way to borrow money.

If you own your car outright, or have nearly paid it off, then a car equity loan may be the best possible way for you to borrow large amounts of money.

The way car equity loans work is that you are able to use the equity you’ve built up in your vehicle as collateral for a secure installment loan.

By temporarily trading possession of your car’s pink slip, you’ll get to borrow money against the value of your car, typically in the range of several thousand to tens of thousands of dollars.

Here at City Loan, we’ve focused on making the borrowing process as quick and painless as possible to ensure that our customers can get the cash they want in mere minutes.

In fact, we’re typically able to approve and fund our loans within the same day that they’re requested, sometimes delivering the cash to our clients within hours of receiving their initial contact.

Our entire equity loans process is so simple that it can be summed up in four simple steps:

  1. You give us temporary possession of your car’s title (A.K.A “pink slip”)
  2. You get a cash loan based on the value of your vehicle
  3. You issue a series of affordable installment payments to pay off the debt
  4. You get your car’s title back after the loan is fully paid off

It doesn’t get much easier, or more convenient, than that!
 

Benefits of a Car Equity Loan

Car equity loans offer numerous benefits, including: 

  • Car equity loans offer a quick and easy application process, often with the potential for getting the cash you want the same day that you request it
  • Car equity loans are great for those people with bad credit, because lenders are willing to loan to borrowers who use their car’s equity as collateral to secure the loan
  • Car equity loans are great for those looking to raise cash quickly, since the application process only take a few minutes to complete, and loans can be funded within hours, not days
  • Car equity loans use your car as collateral to secure the loan, but some lenders (like City Loan) won’t require you to give up access to or use of your vehicle while you pay off the debt

After you’ve reviewed the alternative forms of short-term loans available to people with poor credit, you’re sure to see that car equity loans are likely to provide the best bang for your buck.

 

Car Equity Loans Compared to Other Types of Short-Term Lending

There are all sorts of ways to raise money quickly in today’s economy, but car equity loans are significantly more convenient than the competition. Find out how car equity loans compare to other popular forms of short-term lending below:

Car Equity Loans vs. Payday Loans

Payday loans may be the most popular form of borrowing for those who need to raise funds fast. However, they have also been referred to as a potentially dangerous form of “predatory lending”, and have even been outright banned in several states.  At a glance, payday loans might seem like a good deal, but when you crunch the numbers and review the fine print, you may be surprised to find out about the following significant downsides to payday lending:

  • Payday loans always require proof of income, meaning that if you are unemployed, paid under the table, or have a variable income, then you may have trouble getting approved for one
  • Payday loans offer a short repayment period, requiring that you pay off the entire loan balance, plus interest and other fees, by the time you receive your next paycheck
  • Payday loans typically only offer small amounts of money because the amount you’re able to borrow is limited by the value of your next paycheck (for many people that may only be a few hundred dollars)
  • Payday loans have many hidden fees, including massive interest rate spikes and penalties for missing payments, being late on payments, or a variety of other things that could dramatically increase your borrowing costs
     

Car Equity Loans vs. Auto Pawn Loans

Car equity loans and auto pawn loans seem extremely similar at first glance, but there is a major difference between these two different forms of short-term lending.

The most important differentiator is that with auto pawn loans, you’ll typically have to sacrifice the use of and access to your vehicle until you’ve fully repaid the loan.

Car equity loans from City Loan aren’t limited by the same constraint! As long as you continue to make your payments on time, we won’t even place any restrictions on the use of your car.

If you need your car to get to work, drop off or pick the kids up from school, run errands and just generally get about town, then an auto pawn loan won’t be very convenient for you.
 

Car Equity Loans vs. Credit Card Cash Advances

While credit card cash advances are a better option than payday loans, there are some important limitations to credit card advances as well, including:

  • The amount of money you will be able to borrow will be based on your credit limit. If you’ve already racked up a great deal of credit card debt, then you won’t be able to borrow much at all
  • To get approved for a credit card cash advance, your credit score will be checked. If you don’t have great credit, then you’re likely to face huge interest rates
  • In order to get a credit card cash advance, you will need to have a credit card; it may sound strange to you, but in this difficult economy, many people don’t have credit scores good enough to get approved for a credit card in the first place
     

Car Equity Loans vs. Traditional Bank Loans

Typically, traditional bank loans are the cheapest ways to borrow lots of money, but they too come with some serious drawbacks, including:

  • Traditional bank loans aren’t easy to apply for because they require a mountain of paperwork and a detailed, comprehensive credit check
  • Traditional bank loans aren’t easy to qualify for because they typically require having a perfect credit score and a huge down payment
  • Traditional bank loans are usually only provided for specific reasons, like purchasing a new house, upgrading a piece of property, starting or investing in a business
  • Traditional bank loans take forever to get funded, so they’re a terrible idea for anyone looking to raise money in a hurry
     

Tips for First-Time Borrowers

If you’ve never taken out a car title loan, vehicle title loan or auto title loan before, then please pay attention to the following tips:

  1. You shouldn’t even attempt to apply for a car equity loan unless you own your car outright, or have only a few remaining payments on it
  2. Because your car equity loan will be based on the value of your car, you will need to own a car with a wholesale value of at least several thousand dollars, or you may have trouble getting approved
  3. Once you are issued a car equity loan, make sure that you don’t miss any payments, as defaulting on your loan could lead to having your car repossessed
     

City Loan Long Beach Can Help

City Loan prides itself on providing a great customer experience, flexible car equity loans, affordability and reliability that you deserve.

Even if you’ve already been told no by other lenders, we may still be able to help.

Get your equity loan from us and you’ll be able to enjoy flexible loan terms, hassle-free payments, and excellent customer service.

Find a City Loan Near You

The best car title loans City Loan Long Beach offers can be found in states like: South Carolina, Missouri,  Utah, Texas,  California,  New Mexico, and  Arizona, and we’re ready to help you today!

If you're in the Long Beach area, stop by our main office and speak to any of our loan officers. You can find us easily at: 

Address: 
3431 Cherry Ave,
Long Beach, CA 90807

No other car title loan company offers the type of service that you'll get when working with City Loan Long Beach. Our team is dedicated to making the car title loan experience easy and hassel free. 

To get your own fast, easy and convenient car title loan today, please call us now at 1-888-238-9085, or simply fill out our easy online application form.