Tag Archives: car title loans Canada

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.

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.