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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.

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.

Get Cash on your Car

Statistics suggest that more and more Canadian families do not have enough spare cash to fund any sudden emergency. From a burst water pipe to an unexpected baby, families who are already stretched to the limit often struggle to meet these crises, and may fall into serious debt. For those who are already in a financial hole, the extra pressure of finances can be a disaster. If your family need sudden help with a financial burden, then one solution may be to get cash on your car with a vehicle title loan. Just like home equity loans, these can provide instant cash and allow the family to get back on their feet.

 

There are several ways in which people can get a financial loan on their vehicle, but the most secure is to ask for a vehicle title loan. These loans allow the car owner to drive the car, while making monthly payments to the lender until the loan is paid out. In fact you basically convert your vehicle into cash by using its equity. These loans are suitable if you have bad credit, for example, or are self-employed, both cases where most banks will not allow you to borrow against a house, car or other property. With a car title loan company minimal amount of paperwork required, there is no credit check and the process is faster than banks & traditional financial institutions.

 

It is a good idea for anyone new to taking out a loan on their car to consider several different car title loan companies before calling one and asking for a deal. Rates for car title loans will vary, so the amount that you need to borrow should always be a consideration when talking to title loan companies. For example, some will only offer a loan of up to $10,000, while others will allow up to $30,000. Another element to consider is the repayment time. Some companies only allow a short period for repayment, between one and three months, and may be ideal for you if you only need a small loan for a short period. However, for those who need larger loans, it may make more sense to check out companies who offer 2 or even 5 years term on the loan repayment. Pre-Payment penalty is another important component on your check list, some companies will charge you early payment penalties while others will provide you an open car title loan which can be paid out anytime with no penalty.

 

Before you can get cash on your car, you will need to be certain that you are eligible. Most companies ask that the car being offered for loan is completely yours, and that it has no other loans currently on the title. They will also expect the car owner to be at least 18, and most often 19. The car must have full coverage insurance in order to protect the company in the event of a car accident or theft and the car must also be registered in your name, to prove that you are the owner.