Can you use your car to pay your college fees? Yes, you can by using your car title as collateral to take out an auto equity loan. To get approved, you must have a clear car title, and can even keep your car while you repay the loan.
A secured, short-term loan can be taken out to pay for emergency expenses by putting up your automobile equity as collateral. These are called title loans, also known as pink slip loans. The pink slip, or automobile title, is retained by the lender until the loan and the interest is paid back in full.
But how do you make do without a car in college?
Well, with auto pawn loans, residents do not have to give up their car. They can continue to drive it while they pay back the title loan.
Auto Title Loans: Students’ Ideal Source of Fast Cash
The interest rates for these loans are higher than traditional loans from banks, credit cards or payday advances, these loans are also available to people who have bad credit or no credit history and they have longer repayment options.
This makes them ideal for students who need emergency cash to pay tuition and have no credit history. These loans can supply large amounts of cash (typically up to about 50% of a car’s wholesale value) in a short turnaround time. Automobile equity loans can pay for emergency college expenses
There are many different types of college expenses where timeliness is an issue, including:
* Tuition: Some schools will not allow students to attend class until tuition is paid in full.
* Travel expenses: Getting to and from school for holidays and breaks can add up.
* Books: The required books for a semester of classes can cost hundreds of dollars.
* Housing: Students often have to pay for on campus or off campus housing.
Borrowers who have an automobile with a clear title and a source of steady income, can use their car title as collateral to get quick cash online in order to cover college expenses. Some companies do not require proof of income, but it’s wise to have a way to repay a loan worked out before you apply, to avoid losing your automobile.
Make sure to work with a reputed lender that offers flexible payment terms and competitive interest rates. Calculate the annual interest rate to make sure you know how much you will have to pay.
As long as you have a clear car title and the documents to prove that your car is paid for or nearly paid for, it is easy to get approved. Most auto equity loan companies accept applications online or by phone and will notify you if you’ve been approved within minutes.
For students, a cash title loan can help you cover emergency expenses until you can work out another source of funding. If paid back in time and on schedule, they could even help a student establish a good credit history and allowing the student the opportunity to use conventional funding in the future.