Collateral loans are some of the easiest type of loans to obtain, regardless of your credit. A collateral loan is an item of value and the bank or lending institution lends you the amount of money your collateral is worth. Applying for a guaranteed collateral loan is an easy process.

Step 1

Firm up how much money you need, then find collateral matching that amount. Collateral includes such items as automobiles, homes, jewelry, boats, ATVs and anything else of value. The collateral has to be paid off and you must have a clear title.

Step 2

Take your collateral's title to your loan officer, stating that you want to apply for a guaranteed collateral loan and for what amount, then provide your clear title. Once the loan officer determines the collateral's value matches the loan, the officer will have you complete the loan application.

Step 3

Complete the application and answer any questions the loan officer has and await loan approval. Collateral loans are called guaranteed collateral loans because the banks win either way. If you pay back the loan, they win. If you default, the bank will sell the collateral for profit and still win.