Tag Archives: car equity loan

Understanding Car Title Loans

Some highly developed countries like those of Canada and the United States, have developed a numerical representation of the creditworthiness of a person, and they call it “credit score.” This numerical appraisal of a person’s credit worthiness is definitely critical to the ability of a person to qualify for financial loans; hence, the citizens of these highly developed countries always try to make their credit scores high to ensure that loans would be open to them. Loans are important, especially, if you want to raise funding for a particular project or purchase. Moreover, in a highly developed society, most people use credit cards; and some privileges can be had if you have a good credit score. Likewise, lenders generally make use of the credit score to figure out the amount of risk involved in lending a particular person. For this reason, if your credit score is low, you are likely to be denied a loan. The credit score is usually provided by the Credit Bureau and is based on the assessment or credit report of this bureau.

It is a pity more often that those with low credit scores are the ones who are usually experiencing financial crisis or are those who are in dire financial strait. Moreover, those with low credit scores are surely badly in need of loans. It is tragic however that they are the ones who are denied loans because of their low credit scores. Hence, they are hard-pressed, with no one to turn to in times of financial crises. It is good enough however that there are loans that could be availed of despite having a low credit score. These loans are called secured loans because these loans are provided against a collateral. You can only avail of these loans if you have something to put forward as a collateral, and one type of these loans is called “car title loan.” Car title loans are loans in which you would use your car as collateral in order to avail of these loans. In Canada and United States, there are car title loans lenders who are more willing to provide this type of loans. If you live, for example, in Canada and you badly need a loan, you can readily avail of one of the car title loans Canada.

It is easy to acquire a car equity loan, considering the fact that this type of loans are secured and entail less risks on the part of the lenders. Within 15 minutes, you can already acquire a car title loan. Moreover, the amount of loan that you can get on a car title loan can go up to around $30,000.  Lenders of car title loans usually provide loans around half the price of the car. The reason for this is that, in case you renege or default in your repayment of car title loan, your lender can get hold of your car and can sell it to recoup the amount of money they have lent you. Additionally, the title of the car stays in the hand of the lender, and until you have repaid the loan amount, the title will remain in the possession of the lender. But the good thing about this type of loans is that, you can still use your car during the loan duration.

What is a Title Loan and How Do Title Loans Work?

Nobody can predict what is going to happen in the future, but you can mitigate the impact of a possible event or incident in the future. Events do not happen without any reason. Events and incidences are likewise governed by the principle of cause-and-effect, and this principle is a universal principle that could not be contravened. For this reason, no event will happen if the right conditions and factors are not present to make the event an actuality. Similarly, the effects of financial loss due to a future event can be mitigated and lessened if you know how to mitigate or lessen the impact of this future event. You can mitigate the risks involved in the occurrence of a future event by preparing yourself for the eventual occurrence of that future event. Using your imagination, you can anticipate and play in your mind a possible future event, and thus you can anticipate the risks involved in such event. You can likewise avail of insurance to mitigate the financial loss that could be incurred in case the event happens.

Even if you have an insurance to mitigate the risks involved in any future event, you may sometimes end up in a financial crisis if you are not earnest enough to hedge yourself against this future event. Sometimes, crisis after crisis would beset you, waylaying you financially, and making you incapable of escaping the financial quagmire brought about by these crises. In instances like this, you may end up with a bad credit rating. Your low credit score would surely negate your chances of getting the needed loans to bail you out of your financial problem. Like a drowning man, your first option of availing of a needed loan is immediately precluded you due to your low credit score. In desperation, you may go out, seeking the help of your friends and relatives. But often, your relatives and friends—seeing that you are drowning in debt—would often shy away from you, and leave you reeling in despondency and all alone.

In case like this, wherein your relatives and friends have already abandoned you, if you have a car, you can immediately use your car to avail of car title loans online. Car title loans, unlike any other types of loans, are loans that you can avail of even if your credit rating is very low. Lenders are liberal in providing this type of loans because they know that these loans are highly secured; moreover, you can avail of online auto title loans immediately. The vehicle title loan online is secured against your car, and for this reason, lenders do not even bat their lashes when providing this type of loans. They surely don’t have any reservation because they know that they would be compensated in case you renege from your payment of the loan.

At the onset of applying for this type of loan, your car will be assessed if it qualifies as a collateral to the loan. There are other prerequisites, however, that you must comply with before you can qualify for a car title loan. You have to provide the lender, for example, with the car title, and until you have fully paid the loan, the car title will remain in the hands of the lender.

Car Title Loans Canada as Secured Loans

 

Life is full of crises and as a person matures, a person usually encounters myriads of crises that could make that person strong and resilient in life. A crisis is derived from Greek word Krisis, and it means an event or happening that could lead to a situation that is dangerous and unstable. Crisis may affect an individual, a group of people, or the society at large. Crisis definitely entails change or changes, and these changes are always considered to be negative.

There are many types of crises; yet, one of the most common types of crises is financial crisis. A financial crisis includes a wide range of situations wherein a person, group, institution, society, loses large part of the nominal value of its financial assets. In a limited sense, a financial crisis may also refer to a situation wherein a person finds himself financially decrepit. This type of financial crisis can cause a person to be bogged down in the quagmire of indebtedness and badly needing financial bailout. However, in such a situation, a person may find himself in a bad credit rating and unable to secure the needed financial loans, considering the fact that most lenders always look at the credit score of an individual before acquiescing to provide a loan to an individual. Hence, more often, a person experiences a double whammy effect during a financial crisis because it is during financial crisis that he badly needs loans, and it is also during this financial crisis that lenders shy away from providing a loan to a person who is enmeshed in financial crisis because of that person’s low credit rating.

A person with low credit rating and in urgent need of financial loan is like a sinking ship that sends SOS, but nobody hears his urgent message. As mentioned above, this person finds himself without succor. If that person, for example, is leaving in Canada, he got one recourse in moment when everybody else abandons him. If he has a car that he owns, he could use his car to avail of one of the car title loans canada. Anyone with a car—that is not older than those cars that were released in 2008—could use his car to avail of a car equity loan Canada. He could use his car as a collateral for the loan. However, he has to provide his car title to the lender for safekeeping until he is able to repay his loans.

Why Lenders of Car Title Loans are so Liberal in Providing Car Title Loans?

The reason why lenders of car title loans are very liberal in granting car title loans as compared to other lenders lies in the fact that car title loans are secured loans, i.e., this type of loans is secured against the car of the owners. There are other requirements that are demanded by car title loans lenders, and these requirements are quite simple to comply with. The good thing about car title loans, however, is that lenders of these loans do not take into consideration the credit rating of a borrower simply because it is a secured loan. Hence, in times of financial crisis, when you are almost despondent for the needed loan, your best option is to avail of a car title loan.

What is a Title Loan and How does it Help Those Who Badly Needed Cash?

There are definitely myriads of risks that come along with living a full life, and some of these concomitant risks are predictable, while others are not. Due to these accompanying risks involved in life, many of us save money so that we will have a safety net in instances of emergency. There are many reasons why people save, and one reason is that of the need for emergency cushion that would enable a person to go through emergency times without necessarily getting mired in debt. Another reason is that of retirement reason, wherein a person needs to have some savings so that by the time of retirement, a person will have enough to get by. Furthermore, the volatility of the social security can be a good reason behind why a person saves.

Savings are very important as safety nets against life’s crises and concomitant risks; however, there are times that savings would be exhausted because sometimes there are financial problems that come inadvertently like downpour of rain. In times like this, there is often a need for immediate cash or loan that could assuage the impact of crises. The sad thing however with life’s crises is that they leave us devoid of savings and sometimes in deep indebtedness. This deep indebtedness makes us lose our good credit standing, leaving us with a bad credit rating. In such a situation, we could only hope that there will be no longer be any problem that would come our way, for with a bad credit rating, we are left with no option if ever another problem comes our way.

In times wherein we can’t have a loan because of our bad credit rating, we can still avail of fast title loan if ever we badly need financial help. I, myself, for example, can borrow with my car as a collateral. Using your car as a collateral, you can borrow up to $30,000. The process is easy and there is no required credit or background check as long as there are no legal hindrance or encumbrance to your ownership of the car. The repayment likewise of this type of loan may stretch from one year to five years.

There are simple requirements however to this type of loan. First, you need to have a car that was released in the year 2008 and up. Second, your car should have been fully paid and there should be no legal encumbrances to your ownership of the car. Third, you should have been issued with a valid driver’s license. Fourth, you should be at least within the eighteen years of your life. Lastly, you should have a full coverage insurance policy for your car.

Many people have attested to the fact that the availability of car title loans really helped them in times of financial crisis. Moreover, car title loans, as attested by some people, have served as a saving grace to a lot of people. Savings may be a great way to come out unscathed from a life crisis, but without emergency savings, car title loans can be a great way to get by during times of financial crises.

The Many Benefits Of Car Title Loans

Where and how you obtain a loan may change, but it is always important to get the financial aid needed in a timely manner so your goal can be achieved. One of the most convenient ways to obtain a loan is to obtain a car title loan online.
Apart from being a quick and nearly effortless way to obtain a loan, there a number of other benefits that come with this type of financial transaction including:
Access To Money Within The Same Day
If you need cash quick, then a vehicle title loan online may be the best way to get the funds in your bank account instantly. Some companies can get you approved with ONE hour and you can have the cash on the same day.
No Credit Checks Necessary
A lot of companies which offer online auto title loans will get you approved regardless of your employment status or credit rating. Bad credit is acceptable and no employment is necessary.
Your car title loan company often looks on the equity of your vehicle rather than your personal financial condition and rating. Loans available for bad credit, self-employed, new comers to Canada, students, seniors and general public.
Car Title Loans Have Lower Interested Rates
A bad credit loan institution may have massive interest rates while the majority of car tile loans companies and most financial institutions are below what is charged by payday loans, pawnshops and personal private outfits.
the fact of the matter is that a vehicle title loan is almost always cheaper than a payday advance and is far more lenient because an important asset – your vehicle – is involved.
You are also given more flexibility in terms of repayment and interest based on your job and the vehicle which you are taking a loan out against. In most cases there are no penalties for paying out your loan early and you get longer repayment terms with affordable monthly payments.
You Will Continue Driving Your Vehicle
One of the greatest concerns drivers have is that taking out a fast vehicle loan means that you cannot drive you vehicle. Car owners can still continue to drive and operate their vehicle. This is how it works:
The lender will treat the title to your vehicle as collateral. You will continue to make payments towards that collateral, and after you have made your final repayment, you will receive your title back clear of any liens. You are still able to drive you vehicle to work, to the grocery store, and even around the country when you take out a car title loan.
Title Loans Are Secured Loan
Nothing can be more secure than putting something you own on the line for a loan you need. When you take out a vehicle title loan, you are using your asset to obtain a loan. You secure the loan through your asset and as a benefit, through securing your loan you enjoy a lower interest rate and far more flexible terms than you would if you were to approach another lender.