Mishaps can happen anytime in life and urgent cash is required to solve them as early as possible. Many people are facing financial emergencies these days, especially due to the Covid 19 situation. Everyone might not be rich and in a situation to save funds for such situations. and not everyone is rich by birth to handle all financial issues without taking anyone’s help. Big or small expenses can pop up anytime. In such situations, car title loans can help you get the cash you require by using your vehicle as collateral.
Car Title Loans- Introduction
If you own a lien-free vehicle, you can use its title as an asset to get the cash you need in times of financial crisis. Car title loans are long-term loans where a lender allows you to use your vehicle as collateral to provide the loan amount. The amount of the loan depends on the market value and condition of the vehicle. The greater the value of your vehicle, the more cash you can receive from the lender.
How Does The Procedure Work?
A lender just requires your vehicle’s title to give you an approval on a car title loan. There should be enough equity in the vehicle to get an enough loan amount. Different lending organizations have different loan amounts to offer. They can repossess and sell the vehicle if you are unable to pay back the loan amount.
Some Features Of Car Title Loans
- These loans are given at the lowest interest rates to people.
- The applicant’s credit history is not taken into account
- The loan process is fast and easily
- The loan terms are long and flexible
- The loan amount depends upon the condition of your car, which includes the year, make, model, and mileage of the vehicle.
Advantages Of Getting Title Loans On Your Car:
- You don’t have to worry about losing your car and keep driving it
- You can get high loan amounts
- It requires very less documents to get approved
- There are no hidden fees involved.
- You get same day cash for your problems
- You can utilize your car fully while making loan payments.
Difference Between Car Title Loans Other Unsecured Loans
- Your car is used as security
- The interest on these loans is comparatively low
- The loan process is quite flexible.
- The loan amount borrowed depends on the value of the vehicle that has been used as collateral
- People with no job can also apply.
- The loan approval process is much faster as compared to any unsecured loan
Requirements To Be Fulfilled For A Car Title In Canada
- You must attain a minimum of 18 years of age.
- The vehicle that is used as collateral should have proper registration and insurance.
- You must have a valid government-issued id.
- Your car must be fully insured.
- You require a clear title in the name of vehicle
- A valid driver’s license is required
- Spare keys to your car.
What Is Credit Score And How Does It Matter In Car Title Loans?
A credit score is a number that tells your financial reliability and most banks and lending organizations use this credit score to approve you for a loan. Usually the credit score depends on your payment history. Unsecured loans depend on your credit, and make a much more significant impact on your credit score. However, loans that are secured depend on collateral and have the potential to affect your credit score. Therefore, car title loans usually do not require a credit score to check your reliability as they are already secured against your vehicle.
To apply for a car title loan for your financial problems or crisis, you can call the lending organization at their toll free number or apply online. There are many car title lenders that can help you out. Choose the one that best suits your requirements. Their staff will guide you about the loan services. You can also visit the location nearby to complete your loan application with them. They will inspect your vehicle and determine the loan amount to provide you the cash on the same day.