For a long time, people have been warned against the pitfalls of using a car title loan. In the past, these types of loans were scandalous for charging people an exorbitant fee in time of need, and often making them depend for their services. However, this does not go for Canada title loans.
What is a Canada Title Loan?
Canada Title Loan, also known as a car title loan is a loan that relates to a personal loan received from a bank. The only difference being, that you use your vehicle title to protect the loan as opposed to your credit. Since credit isn’t attached to a car title loan, potential borrowers even with poor credit may be handed a loan as per the value of his or her car.
What are some great benefits of Using an Auto Title Loan?
The worldwide financial system and economy has affected almost everyone in some way or the other, and has caused them to tighten their wallets. However, some have been a lot more affected and have noticed layoffs or have not been able to pay certain bills on time each month because the expense of living rises.
When unexpected financial burdens occur, for instance car repairs or perhaps lawyer fees, a car title loan might get you the money you may need in as little as an hour without forcing you to sell off your assets or perhaps further compromise the emergency funds.
Other benefits to having a car title loan includes:
- Zero additional out-of-pocket costs
- Zero pre-payment penalties
- Monthly repayments that are possible in your respective budget
- 36 months of repayment period
How to get into a car title loan?
Only companies properly licensed to obtain auto titles may give a person a car title loan, and they’ll require that you own the vehicle in your name and that the car is worth at the very least $4, 000 to be able to provide a personal loan. Auto title companies don’t generally require the credit check to secure a loan, but they will definitely require some income related documents.
Basic documentation which is usually required to secure a loan includes:
- References (Usually personal)
- Residence proof of the borrower
- Proof of ownership of vehicle
- Proof of income as is shown by the owner
- Insurance proof of the vehicle
- Owners driving license
When one uses this kind of loan properly and responsibly, a title loan can result to being a great way to supplement income without needing to worry about small repayment periods or perhaps high financing fees. When considering the decision of acquiring a car title loan, always go for a credible company having a long standing reputation of excellent customer service to use. You should not be afraid or shy to request for recommendations or to turn down a company’s service when you feel that they do not seem trustworthy and reputable.