Are you going through a financial hardship or do you need to capitalize on a dream? If you have a car paid off, you can apply for Atlanta Car Pawn Loan with a vehicle as collateral. This is one of the most advantageous types of loan on the market. Hiring is simple. Interest rates are more attractive. The process is much smoother, and the longer term. Still, it is possible to get a higher credit value compared to a personal loan. However, in order not to lose your car, you need to have a clear objective.
Credit amount may be higher
The loan amount is proportional to the vehicle’s market price. If you have a sustainable car valued at $50,000.00, for example, you can get up to $40,000.00 in credit. With the personal loan, you would get around $20,000.00. This means that credit with a vehicle as collateral is interesting for those who have a higher cost purpose.
You keep the car
When the time comes, we make drastic decisions to get life back on track. The loan with a vehicle as collateral is an alternative to selling. You capitalize on giving the bank the security of the car, but you will keep it for normal day-to-day use. For those who use the car to make income, this is an undeniable advantage. Still, the alienation only lasts until you pay all the installments. After that, the vehicle returns to its name.
Bureaucracy is less
Hiring is very simple. You just need to apply for the loan, send the documents required by the finance company and wait for the financial and legal analysis, in addition to the car inspection. The whole process takes about 30 days.
Interest rate is more attractive
All financial institutions do credit analysis before releasing any loan. Even so, there is always the possibility of default. The greater the chances of the consumer not paying the agreed installments, the more expensive the bank will charge for that money. That is why unrequited loans are often less worth it. Unsecured personal credit can have an interest rate that exceeds 9% per month. Nevertheless, that does not mean that this modality is bad. In fact, the unsecured loan is ideal for emergencies.
Payment term is longer
The logic of the term is similar to that of the interest rate. In addition to the higher loan amount, with the vehicle as collateral, the bank has more confidence in the customer to make the number of installments more flexible. Overall, you can get up to 48 months to pay off.
Benefits weigh less on your pocket
With a longer term and lower interest rate, it is clear that the installments will be smoother. Thus, the installments will not compromise the family budget, and you will be able to fulfill your dream faster. To understand the size of the advantage, let us do a very simple calculation. Imagine a personal loan of $20,000.00 with a term of 24 months and interest of 7% per month. With the loan with vehicle as collateral, this same amount could be divided into 48 months and with lower interest rates.