Applying for a car collateral loan in the Philippines is easy. What makes it hard for some borrowers to accept is the fact that very few loan agents know how to pre-qualify their clients. The sad truth is this will only lead to bad results and worse to get your OR CR loan application declined by lending providers.
For those who are on their way to seek for more information, it is best to consult either the internet or someone who knows their way in and out of unexpected problems with loan application. In either case, you, the borrower had only 2 places to find help. That is online or thru the internet and second – thru hiring a qualified, accredited and professional loan agent. A freelancer will always do better because you can have as much choices as possible and more choices means that you have reservations just in case a failed, declined or disapproved loan application occurs.
Below are some of my very own tips for loan borrowers not just for secured and low risk collateral loan but also for those who might be interested to apply for non-collateral unsecured and high risk loans in the country. Just to give you an overview, I would like to enlighten you first about the difference between a high risk non collateral loan from a low risk secured collateral loan.
Difference Between Collateral and Non Collateral Loan In Terms of Borrowing Money
- Collateral loans are much quicker in terms of approval and release of your cash while non collateral loan takes time due to process like credit investigation and so on.
- Collateral loans are secured type of loans which means that lending companies would rather prioritize borrowers applying for this type of low risk credit offer.
- Non-collateral loans are high risk for lending companies and applicants for this type of loan usually get to be only second on the line to be approved.
- All non collateral loan have high interest compared to collateral loan. It also applies with processing fee. For example, with my lending company providers, seaman loan (a type of non-collateral loan) had 3%-5% interest rate while car loan only has 1%-2.5% interest rate.
- It is easier to come up with a basic computation and quotation for collateral loan compared to non collateral loan with the use of a loan calculator.
- Borrowers could only come up with minimal or lower loanable amount approval compared to collateral loans.
- Processing for collateral loan is much faster than non collateral loans.
- Collateral loans being able to provide higher loanable amount will come up with a higher or bigger monthly loan amortization or payment amount.
- The loan payment terms for non collateral loans are shorter compared to collateral loan. A good example for this is with either a car loan or house and lot loan, loan term extends up to as long as 5 years while seaman loan, personal loan, doctor’s loan, business loan and the like would only give you a maximum loan payment term of as long as 2 years to pay.
- Most of the time, no coborrower is needed for a collateral loan while non collateral loans will always require a co borrower to qualify to apply and get approval of the application.
As an additional tip, for those vehicle users who are second owners, you may opt in to learn more about how to go over with the process and how to apply for cancellation of mortgage in LTO first.
Top 10 Ways to Know and Ask Yourself if You Qualify for Car Loan
Now that you already know the difference between a collateral and non collateral loan, here is the juice for knowing if you can come up with an approval with your application. There are so far top 10 ways to find out if you can really get cash out of your car in exchange for using it as collateral. If you think that lending companies including banks would just give you a loan out of your auto just like that, you better consider asking first a qualified loan agent. This way, if you are lucky in finding the right professional to assist you in your loan application, you’d be halfway ahead of getting an approval. Otherwise, you’d have to see my list below or at the least, Contact Me to make a direct inquiry.
- Do I have sufficient source of income to pay for my loan? Income serves as capacity to pay for any type of mortgage as well as loans therefore, if your income is just enough to fend for your dependents or yourself, it is most likely that you’ll get declined of your loan application. Otherwise, there is a way – provide for additional income source by having a co-maker.
- Is my car fully owned and not under mortgage? By fully owned, what I mean is if the car OR CR is under the borrower’s name. Second, third or fourth owners have an option to apply and get an approval first before applying for a change name with the LTO.
- If my car is under mortgage, is it already paid at least 70%-80%?. To qualify to use your vehicle for car collateral loan, this is a requirement.
- I have my car paid more than what is required of 80%. The next question is,,, do I have arrears or unpaid balances that is enough to get me under legal department request of repossession of my vehicle. If this is the case, you’d have to settle unpaid mortgage first and secure a complete history of payment from start to latest amortization.
- Do I have court case? Many would question the need to find out if a borrower had court cases because most borrowers think and reason out that they have property to collateral, why is there a need have a clean credit record? Well, the answer is, if you have for example a case of BP-22 or replevin case or sum of money case and the like, it reflects your type of a borrower or client. If you failed to pay for your mortgage or to fund your checking account on time for your dues with whatever mortgage you have, then lending companies would think that it would be most likely that you’ll end up with the same style and type of failed payment with them so why would they let you borrower money if you can’t be able to pay for it?
- Do I have the right and complete documents as listed in the car loan application requirements? It is easy to come up with the requirements but there are a few clients who are not willing to provide for it. For example, there are clients who wouldn’t submit bank statements or COE or don’t have TIN ID. If this is your case, ask me. I might have alternatives for your special case from providers who don’t allow so much requirements to providers who don’t ask for too much documents. But if this is your case, rest assured that you don’t have a choice but go for higher interest rates.
- Is the year model of my case allowed from the list of pre-qualifying requirements to apply for car loan?
- Do I have other existing unpaid or delinquent paid loans with other lending companies?
- Am I on bad credit with my unpaid credit card bills? How much do they amount?
- Am I willing to disclose accurate and absolute information in case needed by the lending company?
Now, there might be other important consideration to think about before you can be assured to qualify to apply for car loan without taking your car credit offer. For more information, choices and options, please don’t hesitate to ask me using any of my contact details below.
Call me to apply for Car Loan – Sam Casuncad (Pinoy loan consultant)
home office phone: 542 7015 / 366 3645
Sun Cellular No 0932 – 872 5532
Smart Cellular No 0939 – 9269335
Globe No 0917 – 5019245
Email application form at firstname.lastname@example.org or email@example.com