Car Title Loans: Urgent Help
What is a secured car loan in Canada? The topic is quite entertaining so let’s find out more.
What Are Car Title Loans Or Auto Title Loans?
Car Title Loans are cash loans secured. If you have a driver’s license, you can mortgage a car less than 15 years old if it is your own or someone else’s if they agree to sign a collateral agreement with the lender. Money is transferred to the card or given in cash.
How Much Can I Get on a Title Loan?
The amount depends on the value of the pledged property. You can find out your rate and the maximum loan amount after applying fast. The organization relies on the information you give in your application, your credit checks, and the value of your car. Alternatively, use faxless payday loans.
How Does A Car Title Loan Work?
You can calculate the parameters in a form on the lender’s website. Enter the necessary amount and convenient repayment term into the loan calculator so that you can know the approximate size of the monthly payment. The exact lump sum determines after the application process is finished. How to see the schedule and amount of regular payments.
A car in pledge allows the bank to offer the client more favorable loan terms and interest rates. The car thus remains the property of the client. The lender only puts a burden on it. Re-registering the car or transferring the original documents to the lender will not have to.
You can use cars in pledge as before, but there are some restrictions: for example, the car cannot be sold, donated, or rented out without the lender’s consent. What you can do with your car while it is in pledge.
Requirements for A Car Title Loan
Everything goes online — no need to go to the lender or send original documents by mail. You can apply online or in the mobile application to clarify all the terms and conditions.
You get a quick decision on the application. The lender considers the application within a day. In rare cases, more time may be required. Usually, you will receive your credit card immediately after registering the pledge at the Federal Notary’s Office, which generally takes two business days.
Vehicle Title Loan FAQs
Let’s answer the most popular questions about car title loans.
What Documents Do I Need to Obtain a Car Title Loan?
All you need is proof of your identity and proof of car ownership. You can use the credit money for anything, just like a personal loan. So it is better to take it out when it is vital to reduce the cost of your car.
Is Employment Necessary for a Title Loan?
You do not need a job. Also, everything happens without any references or guarantors. You will need only a passport to apply and a registration certificate to sign an agreement. Income certificates and other documents are not required. There is a procedure for simple registration of collateral. Spending time and money to put the car in pledge does not have to be. The lender will do everything for you.
Loan for any purpose — you don’t need to explain precisely why you need the money.
Retention of ownership — you remain the car owner and can continue to use it. You won’t have to reissue the car or give the lender the original documents.
No additional fees. The loan amount is transferred to your debit card, from which you can withdraw cash for free at any ATM. To make a monthly payment, just recharge the card.
You can close the loan prematurely for free. You can pay off car title loans Ontario.
in full or make an extra payment at any time, either by reducing the term or reducing the monthly payment. There’s no additional charge. Just deposit money on your card and choose early repayment in the mobile app or account.
How Do I Get Approved for a Car Title Loan in Canada?
All Canadian citizens between 18 and 70 with permanent or temporary registration in Canada can borrow money. However, borrowers must not be older than 70 years of age at the time of loan termination. For example, if the borrower is 68 years old, the lender cannot approve secured car title loans Canada for more than two years.
Can I Get a Title Loan with Bad Credit?
Yes, there is such a possibility. The lender makes an individual decision for each person who applies for a loan. It includes information from the applicant’s credit history. But in general, simply agreeing to provide collateral already increases the chances of loan approval — even for a customer with a bad credit history.
A loan secured by a car can also be suitable for customers with a bad credit history: it will be easier to obtain a loan secured by a car than an ordinary non-purpose loan.
Car repossessions by auto title lenders skyrocketed in the second quarter of 2021. In the first quarter of 2020 it was 13,113. And in the 2nd quarter of last yeas this number was 12,627.
How Much Can I Get on a Title Loan?
Usually, this amount varies from 30% to half of the value of the car. The average sum people get as a car title loan is from $100 to $5,500. But some lenders can give even $10,000 and more.
How to Apply For a Car Title Loan in Ontario?
You can do this on the lender’s website or at a branch. Even if you already have other loans, including other lenders, you can still apply. One exception: you must not have a current secured car loan with our lender. Until you pay it off in full, we can’t issue another one just like it. In that case, you can apply for a home equity loan or a credit card. Alternatively, use online payday loans Ontario.
Pledges increase your credibility in the lender’s eyes. So the lender can offer good loan terms: a more significant amount, a longer-term, and lower interest rates. Be ready, car title loans are expensive. The average APR is nearly 300%.
Losing Your Car
There are no penalties or consequences if you lose your car, as long as you follow the loan agreement terms.
How Does a Secured Car Loan Differ from Car Title Loans Vancouver?
These two loans are similar: the car must be pledged as collateral in both cases. But the main difference is how you can spend the money.
A loan secured by a car is an ordinary consumer loan and can be spent on anything. To get it, you need to pledge the car you already own — then, the lender can give you the maximum amount of the loan and reduce the interest rate.
You need a car loan to buy a car. After you buy a car, the lender takes it as collateral, so he knows that the borrowed money can buy him a specific car.
What Can I Spend Car Title Loans Vancouver BC on?
There are no special conditions. You can use it for everything, including repairs, big purchases, starting a business, travel, medical treatment, education — even if it means closing out other loans and paying less interest.
Can I Put Car Title Loans Toronto Against My Car in the Name of a Company?
No, the lender will usually only give car title loans secured by your vehicle to private individuals. However, there are unique fast loan products for businesses — you might even find them more advantageous.