Simply put, a boat title loan enables you to use the title from your boat as collateral on a secured loan. This type of loan is no different in theory when compared to an auto title loan or motorcycle loan. Boat title loans have been around for years. You used to be able to walk into your local pawn shop and let them hold the title to your boat as collateral. Problem was you weren’t able to keep using your boat! With the increase in online lenders of the past few years we’ve seen more and more companies offer boat title loans where you still get to use your boat. That’s a good thing if you ask us!
Allow us to explain in further detail exactly what a boat title loan is. If you hold the title to a boat and you need quick money, you may exchange the title for a cash sum which reflects the value of the boat, plus some other variables such as your employment history and take home income. When you choose this option, you’ll be taking out a boat title loan in order to get a loan that can be anywhere from $3,000 to $40,000. It really just depends on how much equity you have in your boat. The title will remain with the lender until you pay off the loan. As long as you pay your boat title loan off according to the online loan terms, the title will be returned to you. If you default on the loan, the title will remain with the lender and you’ll lose your boat. Those who are certain that they’ll be able to repay their online loans on time (plus interest and any fees) are the best candidates for boat title loans.
A lot of online title lenders offer boat loans in addition to their core product which is an auto title loan. It’s good to shop around, with a mind to finding the lowest possible rate of interest from a reputable lender. A boat title loan is a secured type of loan. The title to the boat functions as collateral, which secures the online loan so that it’s less of a risk for the lender. It’s a convenient way to borrow against at least some of the value of the boat, without needing to actually sell it! It’s best for those who don’t want to apply for unsecured loans. In some cases, you may only be able to get fifty percent of the boat’s value. Lenders have different terms, so be sure to know exactly how much you will be able to borrow against your vessel. When you apply, you’ll need to have information about your boat at the ready, including its model, where it’s moored or “parked”, the valuation of the watercraft and what year the boat was manufactured. This type of loan is a good fit for those who have spotty credit, as the collateral provided will override the usual need for a good credit score from a borrower. Money that you receive may be utilized for any purpose, from paying a child’s college tuition to home repairs and beyond. Since you’ll be able to keep the vessel as long as your loan is repaid, a boat title loan has advantages. However, you’ll need to be very careful about repaying your loan on time and repaying it in full. Now that you know more about boat title loans, why not shop around for the right lender today? Look for a lower rate of interest, ethical loan terms and a strong business reputation.