2 Common Questions About Non-traditional Loans

There are so many non-traditional lenders and programs available now that you can pick and choose how to get extra cash when you need it. More often than not, you probably will want cash for emergency situations, such as a car repair cash loan, or emergency home repairs. What most borrowers are concerned about is how to make these loans work in strange situations. As an example, one question you may have is, can you take out a title loan to fix the car on which you have placed the title loan? That question, and another of an unusual situation and nature, are answered below. 

Can You Keep and Repair the Car Named in a Title Loan?

If the car is operational enough to secure a title loan, and if the title loan company does not require that you surrender your vehicle at the time of the signing of the loan documents, then yes, you can title a car that is need of repairs and keep the car. Some title loan companies will let you keep the vehicle, knowing that you cannot pay back the money if you do not have reliable transportation to work. Other companies may have "exception" rules if you have more than one vehicle in your possession, but the other vehicles are either not legal to operate or not functioning at all at this time. There are also title loan companies that expect you to surrender the vehicle until you repay the loan. You will just have to check with the title loan companies near you to see what the details are in regards to keeping your vehicle. 

Can an Unsecured Loan Company Seize Assets to Repay a High-Interest Loan?

An unsecured loan company offering a lot of cash up front in exchange for really high interest cannot take anything of yours until they have gone through the proper legal channels. Even then, a judge is not likely to award the lender your boat, car, RV, motorcycle, or house as compensation. It is more likely, should you fail to make payments on this type of loan, that the judge will place a lien on your vehicle or other physical assets, and/or create an order to garnish your wages until the loan is paid in full. Hence, your car/truck is safe and cannot be repossessed to pay your unsecured loan when the vehicle was not used to secure the loan in the first place. 

About Me

financing a family swimming pool

Last summer, my family struggled to stay cool during the summer. We seemed to be trapped inside because when we left the air conditioned comfort of the indoors, we were immediately uncomfortable. I promised my kids that this year would be better because I was going to find the money to buy a pool for our yard. I have spent months looking into my different financing options to find out what would be the most affordable monthly option without costing me the most over the duration of the loan. Go to my blog to learn what type of loans I had considered and the pros and cons of each.