Unlock more borrowing power with auto-secured loans

Collateral is something of value that you own and agree to give your lender should you fail to repay your personal loan. The lender can then sell that item to recover the unpaid portion of the loan. For example, if you use your car as collateral for a loan, you could lose your car if you fail to make your loan payments. The lender can repossess your car to then sell it for the lost funds.

First and foremost, you’ll need a vehicle that you own to get an auto-secured loan, such as a car or truck. Remember, when using a truck or car as collateral for an auto-secured loan, it must be adequately insured before it can be accepted for your loan. Additionally, your vehicle must meet certain collateral guidelines. Your local branch can provide more information to help you determine if you can utilize your automobile to secure a loan.

Some potential borrowers, especially those with less-than-perfect credit, may struggle to get an unsecured loan. By using collateral to secure a loan, you may increase your chances of getting approved, could get approved for a larger amount, and may receive a lower interest rate. While it varies based on the borrower, type of loan, and lender, using something like your car as collateral could open up opportunities for you to borrow money when you need it.

Some auto title loans can operate like payday loans with triple-digit interest rates and short terms, which can make it hard to pay off. Regional Finance provides fixed rates and may provide longer repayment periods. What does this mean for you? Fixed payments allow you to understand what your monthly payment will be for the duration of the loan so that you can budget accordingly. Longer repayment periods may also give you an opportunity to make lower monthly payments with more time to pay off your loan. 

If you’re ready to explore your options, look to Regional Finance. We’re more than a personal loan company. Our goal is to help our customers get the money they need to get back on track and provide support along the way. Read independently collected reviews from over 1,500 real customers across the nation and see why so many are saying that Regional Finance is the best place to get a personal loan.

Some lenders will issue a prepayment penalty. When researching auto loans, you may choose to go with a lender who will not charge you for paying off the loan early. At Regional Finance, we do not charge a prepayment fee if you decide to pay off your auto-secured personal loan sooner than the scheduled term ends.

If your car’s value goes down after you use it as collateral to secure a loan, you could end up owing more than what the car is worth. This is also known as negative equity or being “upside down.” This can happen as your car depreciates and interest collects on your loan. As a result, borrowers could have a difficult time selling or trading in their car.

An auto-secured loan simply means you’re using your car as collateral to borrow money. Personal loans can be used for a variety of expenses, from home improvements and auto repairs to a family vacation or childcare expenses. With Regional Finance’s flexible personal loan amounts, we can help you get the funds you need, when you need them.