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ORCR of your car as a collateral for your loan.
#11
How exactly does this work, won't they be able to just run away with your car or wouldn't it be better for them to just sell/rent out their car?
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#12
(01-08-2018, 10:49 AM)thediamante Wrote: How exactly does this work, won't they be able to just run away with your car or wouldn't it be better for them to just sell/rent out their car?

You give the lender your title and they lender gives you money. If you don't pay, they reposses your car because they hold the title to your car. They can sell the car to get their money back.

Don't title loans cost less than payday loans? After all, you are providing collateral for the loan.
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#13
(01-08-2018, 10:49 AM)thediamante Wrote: How exactly does this work, won't they be able to just run away with your car or wouldn't it be better for them to just sell/rent out their car?

Nope. The only thing that you are going to give them is the OR(Official Receipt) CR(Certificate of registration) or the Title of the vehicle not necessarily your car. Its like when using a land title as a collateral. Make sense?
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#14
(01-09-2018, 10:14 AM)Michael Puttman Wrote:
(01-08-2018, 10:49 AM)thediamante Wrote: How exactly does this work, won't they be able to just run away with your car or wouldn't it be better for them to just sell/rent out their car?

Don't title loans cost less than payday loans? After all, you are providing collateral for the loan.


Yesterday, when I was doing research I read that the interest rate on title loans usually varies between 36-100% between lenders. However one can still find a rate of 20% or a little over if they research enough and look for the perfect lender. So, yes, auto loans do cost less than payday loans.
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#15
(01-06-2018, 07:09 PM)Michael Puttman Wrote:
(01-06-2018, 12:16 PM)JB Fernandez Wrote: Sorry. I thought it's an universal abbreviation. ORCR mean Official Receipt and Certificate of Registration. It is like a land title that signifies your ownership on a particular land.

Got it. That’s what we call in the US “Title”, hense Title loans. If you have the title to your car you can get a title loan. The lender would hold the title (literally a government issue piece of paper that states you own the car) and when you pay the loan back you get your title back.
Just work the same here in the Philippines Sir. They will hold the ORCR upon granting you a loan, and will just return it upon paying in full. The term "title" here in our country is only applicable on land and real estate properties.
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#16
I would say it really depends on the country you are wherein one can use an ORCR as a collateral for a loan. And YES! In our country, there are several and multiple agencies and even banks who accept ORCR as a collateral. However I would like to share the pros and cons of it based on my friend's experience. To cut the chase, reason she used her SUV's ORCR is for her father's hospitalization.

THE PROS:
1. Approval time is fast. Provided all documents are forwarded in a timely manner.
2. No background check required.
3. Vehicle is still by the owner's possession even the ORCR was loaned.

THE CONS:
1. The loan amount is way low than the actual value of the car. Regardless of the year model.
2. Monthly interest rate is sky racket. Not to even mention the additional % added for even a day late payment.
3. ORCR itself is being stamped. Just like when you use a land title, the bank will put their stamp on it so when you try to use it again the other bank will definitely know that the title was once used as a collateral.
4. So much documents to submit and all of which need to be notarized by a public attorney.
5. You are technically bind in a contract.
6. Sharing of information. Once you loaned your ORCR, for no reasons you will receive a lot of phone calls offering other loan stuff.

Well, this might not true for others but these are just information humbly shared on an experience. Nonetheless, we give respects and thanks to those offices offering this kind of loan and there are still many rooms for improvement when it comes to technicalities. Cheers!
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#17
One thing that is said about emerging businesses is that taking up loans ain't the best way to keep it sustainable and that is the same reply that I'm going to give here in the sense that it's only you that has got to decide if taking up loan with your car title is really worth it or not. I would wouldn't have to take up such option matter what since there are better options that I can choose, but like they say, choice differs.
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#18
(01-06-2018, 10:25 AM)Michael Puttman Wrote: What is an ORCR?
In our country, you can pawn your Official Receipt and Collection Receipt issued by Land Transportation Office. I think you can pawn it to someone along with your car or motorcycle for a certain amount and certain time. OR and CR is equivalent also to Title loan since it is the best proof that you own that particular car or motorcycle to file a Title loan.
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#19
I think that is a great idea. You get the money you need and at the same time, you are getting money in exchange for a thing which you can still use. It is very helpful especially if you want a capital to start a new business. But you really have to pay it on time as there is a possibility of losing your car for the money that is way lower than its value.
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#20
I don't think most of the bank will accept ORCR of your car as a collateral for your loan specially if your car is not that expensive. Or if so maybe you can expect less money for it exchange of the possibility of not getting it back.
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