Collateral Loans - Is it possible to do this?

[Anonymous]

Hi,

I have a 2006 fully paid for car that I want to use as collateral to possibly get a loan from a credit union like Navy Fed and use as collateral for the loan. I need to borrow $1500 to pay off two tax liens, one of which just popped up on my CR's. The wholesale cost of the car is about $8500. Are there loans like this and/or does anyone know anything about this type of loan?

My scores are not the best because I am rebuilding post CH 7 but I do have some open lines that I have been paying and I have a secured card with Navy Fed that I have been paying as well since October. The scores that I know of are 545 for Equifax and 601 from TU. 

Thanks for any input.

[MarineVietVet]

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@Anonymous wrote:

Hi,

I have a 2006 fully paid for car that I want to use as collateral to possibly get a loan from a credit union like Navy Fed and use as collateral for the loan. I need to borrow $1500 to pay off two tax liens, one of which just popped up on my CR's. The wholesale cost of the car is about $8500. Are there loans like this and/or does anyone know anything about this type of loan?

My scores are not the best because I am rebuilding post CH 7 but I do have some open lines that I have been paying and I have a secured card with Navy Fed that I have been paying as well since October. The scores that I know of are 545 for Equifax and 601 from TU. 

Thanks for any input.

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I've done this. Having 2 sons I've done it several times. I kid my wife that my truck was paid off in only 9 years!!!!    It shoudn't be a problem using your car as collateral. 

7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
"Hello my name is Sandy and I'm a recovering crediholic".

[Anonymous]

Navy Fed uses EF and my score there was 545 before the liens. So, do you think my score will have an impact even though my car is worth way more?

Thanks.

[Jazzzy]

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@Anonymous wrote:

Hi,

I have a 2006 fully paid for car that I want to use as collateral to possibly get a loan from a credit union like Navy Fed and use as collateral for the loan. I need to borrow $1500 to pay off two tax liens, one of which just popped up on my CR's. The wholesale cost of the car is about $8500. Are there loans like this and/or does anyone know anything about this type of loan?

My scores are not the best because I am rebuilding post CH 7 but I do have some open lines that I have been paying and I have a secured card with Navy Fed that I have been paying as well since October. The scores that I know of are 545 for Equifax and 601 from TU. 

Thanks for any input.

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We recently did this. It's some insurance for us until I finish grad school in May. We haven't had a car payment in quite a while, but we do for this.

PenFed advertised 3.99%. Because there are no fees, we felt this was better than a balance transfer, plus it doesn't count in utilization.

Do you have any local credit unions? You may want to develop a relationship with one.

[Anonymous]

we have two large credit unions in the area and neither grant credit to those scummy bankruptcy people...lol.

seriously, both say they do not do loans for less than 650 scores.

thanks. 

[Anonymous]

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@Anonymous wrote:

Navy Fed uses EF and my score there was 545 before the liens. So, do you think my score will have an impact even though my car is worth way more?

Thanks.

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I doubt with your scores that NFCU would approve.  They don't want to reposses the car...so the value won't really matter.  That's why the title loan companies do so well.

But if Navy approves, please let us know!

Good luck.