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.