Home Equity Loans vs. Fort Erie Auto Pawn Loans: Which Is My Best Option? - Instant Loans Canada

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Home Equity Loans vs. Fort Erie Auto Pawn Loans: Which Is My Best Option?

Mar 25, 2014

In times of great financial need, you get to explore a dozen of options that can remedy your situation. In fact, you may have already heard about home equity loans and auto pawn loans. These solutions are extremely helpful in getting you through a financial mess. But do you really know everything about these loans? Let us explore what each can offer.

HOME EQUITY LOANS

  • Collateral. With home equity loans, the basis for the loan approval would be your home. You don’t have to have fully paid your house before you can obtain such loans. As long as you are currently paying the same, a home equity loan can be approved to you. However, this also means a greater risk. You are loaning your house. In case of default, you are in danger of losing a home and I don’t think that is a situation you would want to bring yourself into.
  • Interest Rates. Interest rates of home equity loans are much lesser compared to Fort Erie auto pawn loans but the risk attached with such loans is bigger.
  • Credit Check Requirements. Home equity loans are approved only to those borrowers with favorable credit scores. Subprime borrowers have no chance of getting approved of these loans.
  • Time For Approval. Home equity loans take time to process. In fact, it may even take weeks to months before you can get a decision for your loan application. This is not an option for people who need instant cash.

FORT ERIE AUTO PAWN LOANS

  • Collateral. Auto pawn loans require its borrower to submit a car’s title as collateral. Here, the borrower is required to have fully paid the vehicle before the loan can be approved. Compared with home equity loans, you will only be risking your vehicle. The worse that can happen is having your vehicle repossessed in case of default. I bet this is something you can handle better than losing a home.
  • Interest Rates. Although auto pawn loans come with higher interest rates compared with home equity loans, the reason is due to the fact that these loans are approved even without a credit check. So even a bad credit borrower can have a loan approved.
  • Credit Check Requirements. As mentioned above, Fort Erie auto pawn loans are based on the equity of the vehicle collateral. Its lenders won’t require a borrower to submit for a credit check since the same is immaterial to the loan’s approval.
  • Time for Approval. Auto pawn loans are known for being approved so fast. They provide instant cash to all its borrowers. The fastest time to get an auto pawn loan approved is less than an hour. Hence, you can just head to a lending company during your lunch break and go out with your cold cash.