Many of us are now familiar to car title loans. These are the type of loans that are secured through a vehicle or a truck of the borrower. But what comes out of our curiosity is the question, “is it possible to make a motorcycle collateral for a car title loan”? If you don’t own a car, can your motorcycle help you with your finances?
Unfortunately, the answer is no. You cannot use your motorcycle as collateral for Georgina car title loans. Car title loans are collateral-specific. Only vehicles or trucks can be used as collaterals for such type of loans. But this leaves you not without any resort. If you really need cash but only own a motorcycle, you can still apply for a pawn loan.
What Is A Pawn Loan?
A pawn loan is a loan type wherein you submit something of value as a form of security for the money you will borrow. Just like Georgina car title loans, you will be required to submit collateral in exchange for cash. Pawn loans accept anything as collateral as long as it has a high value. Hence, you can make use of your motorcycle in case you don’t meet the criteria for car title loans.
Similarities Between Pawn Loans And Car Title Loans
Aside from being a secured loan, pawn loans and Georgina car title loans cater a wide variety of customers. Any person can borrow cash through a car title loan or a pawn loan. This means that whether you have a poor credit or no credit at all, it is possible for you to have a loan approved as long as you are able to submit collateral for the cash: your vehicle in the case of Georgina car title loans, or your motorcycle or any other valued possession when it comes to pawn loans.
Are The Interest Rates Affordable?
Both pawn loans and car title loans come with high interest rates. However, such loans offer lower interest rates compared to when you apply a loan from a bank when you have a bad credit rating. The reason for these loans having skyrocketing interest rates is because they mainly cater people with poor credit rating. Such borrowers are very risky to deal with because of the possibility of them defaulting in payment once again.
But wait, you can still find a way to lessen the amount you will pay with such loans. You can do that by paying your loan the earliest possible time. The faster you pay the loan, the lesser the possibility of the interest rate increasing.