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Purchasing a Car With a Home Equity Loan?
It may sound strange, but it is possible to purchase a car by using the money obtained from a home equity loan and you may end up saving a lot of money in the long run by doing so. Home equity loans compared to car loans are inexpensive sources of finance and also, they are a lot easier to qualify for. Thus, if you have equity left on your home and you are planning on buying a car, keep on reading.
A home equity loan has no specific purpose and thus can be used for purchasing anything you want or need. In this case, you can use the money to buy a new or used car and by doing so, youd be reducing the interest rate you will pay for the money borrowed. Though car loan and home equity loan are both secured loans, the loan conditions of home equity loans are more advantageous.
Benefits Of Equity
Equity can provide a lot of benefits when you need to borrow money. Home equity constitutes better collateral than a car and thus the financial transaction backed up with home equity implies less risks for the lender. Thus, you will be able to obtain better interest rates and better loan terms like higher loan amounts, longer repayment programs and lower monthly payments while saving money in terms of interests at the same time.
Also, equity as collateral has less possibilities of destruction or damage compared to a car. Thus, the costs on insurance will be significantly lower. Anything that reduces the risk in the financial transaction pushes the interest rate down because the rate is the way the lender compensates for the risk that lending money entails.
Moreover, for the same reasons expressed above (the risk reduction on the loan transaction) the requirements for approval will be lessened. When it comes to credit requirements, truth is that as opposed to car loans, if you have equity left on your home you can obtain financing even if you have extremely bad credit, no credit at all or a bankruptcy on your credit history.
Disadvantages Of Using Home Equity Loans
The main problem of using your home equity for purchasing a car, is that the means are way above the purpose. It is just like using a bazooka to kill an ant. Thus, if you ever need to resort to this form of financing for other purposes like making home improvements or consolidating debt, you may find difficulties because you have already obtained a home equity loan for purchasing a car.
The other problem, maybe the most serious one, is that since home equity loans use the equity that is left on your home as collateral for the loan, you are risking repossession of the property if you even fail to repay it. It works just like mortgage loans. In the event of defaulting on the loan, the lender has the legal right to seize the property and sell it in a public auction in order to claim the money lent. Thus, you should make sure that you will be able to afford the monthly payments.
Instant Loans No Check: Get Fast Loan without Credit Worry
Instant loans without credit check provide fast cash to handle immediate financial needs. There may be a time when you need some extra cash to cope up with necessities like sudden medical expenses, home improvement or to clear some due bills immediately. No credit check instant loans provide the required monetary help easily as the transaction of loan is faster than any other loan and also the credit history does not affect your chance of getting the loan.
Getting instant loans without credit check is much easier than you may think as all you have to do is to fill up the application form available at lenders office or through internet. The overhead of paperwork is not there as no credit check is required thus a lot of time is saved. To avail these loans you have to fulfil certain requirement stated below:
a) you must be above 18 years
b) you must have a regular employment and an income above £1000
c) You must have a personal checking account operating since 6 months.
The loan amount varies from £100 to £1000 and may go up to £1,500 if you have a favourable case. The repayment time is short ranging from 14-18 days. As expected, the interest rate is a bit higher than other loans but it counts nothing seeing the urgency of situation.
Advantages of no credit check instant loans
Getting a loan when you have a bad credit and in a quick time is not easy and it you cause you mental tensions. Here the importance of instant loans without credit check becomes visible. The loan is approved without checking your past credit record and so the time taken in doing paperwork and checking the credit history is saved. This increases the speed of whole process and you get the money well in time so that you can use it properly.
Summary
No credit check instant loans provide fast cash without discriminating on credit account. The loan is sanctioned within 24 hours generally. These loans are also available online so if interested you can go for online transaction. The repayment mode is according to your situation so you dont need to worry about it if you go in a planned way.