Your Guide to the Dos and Don’ts of a Loan Using a Car Title
Life seldom goes as planned. In its unpredictability, you may find yourself in an emergency from time to time. An unexpected illness, car repair, job loss, or other crisis can put the average Canadian in financial peril.
During hard financial times, you may search for ways to find the cash you need. You may look for a bank loan or personal loan but find this type of loan requires a good credit score or other resources you don’t have.
When this happens, you may look for an alternative source of funding, such as a loan using a car title. If you’re in this situation, you aren’t alone.
Here’s a look at the do’s and don’ts of a car title loan.
Understanding Car Title Loans
A car title loan is secured with a vehicle as collateral. These loans are for personal use rather than business purposes.
When you apply for and receive a car equity loan, the lender does not take your car. This is a common misconception that many people have. Instead, the lender registeres a lien agains the vehicle for the duration of the loan.
Your car vehicle’s registration (also referred to a an ownership) remains with you. You are free to drive your car as usual while you make the title loan payments.
When you apply for fast car title loans, the lender will assess the value of the vehicle to determine the amount of money you may borrow. You will need to provide some personal information and documentation of your financial status before your loan can be approved.
It’s important to show proof of income so the lender sees you have the means to repay the monthly loan. Once the car equity loan is approved, you will receive your funds in the same day if you provide all the necessary information and sign the documents.
A Short-Term Solution
It’s important to remember that this type of loan is considered a short-term emergency loan. Car title loans are intended for individuals who may not qualify for traditional loans.
Car title loans often have a lower interest rate than other types of emergency loans, including payday loans. They are often the best solution for someone who needs cash in a hurry.
The Do’s and Don’ts of Applying for a Car Title Loan
You may be worried about getting approved for a car equity loan, especially if you’ve been turned down for other loans. Getting an auto title loan isn’t difficult if you meet the requirements.
It’s a good idea to have an understanding of the process before you apply. If you need money fast, here’s what you should know about car title loans.
A High Credit Score Isn’t Necessary
A car title loan revolves around the ownership of your vehicle, not your credit score. You must show documentation as proof of ownership of the vehicle you are using as collateral.
Even if your personal credit isn’t good or you lack credit altogether, you may be eligible for a car equity loan.
- Do keep track of your credit to note any mistakes and areas you can work to improve your credit
- Don’t worry that your credit is less than perfect before completing a title loan application
Keep Your Car After Securing a Car Title Loan
Although you must provide proof of vehicle ownership to obtain a car title loan, you don’t give the lender your vehicle. You will continue to drive your car as long as you stay current on the scheduled loan payments.
- Do continue pay your loan on time each month as you normally would
- Don’t hesitate to report any financial problems to your lender if they occur
The Application Process for a Car Title Loan Is Simple
The requirements for a title loan are different than those for traditional loans. To apply, you must be at least 18 years old and have a vehicle registration in your name. The vehicle must meet certain minimum value requirements.
The lender must have proof of your ability to repay the loan amount you’re borrowing. Eligibility requirements may vary depending on the lender. Speak to your lender about the documentation you need to apply.
The types of documentation needed for a car title loan may include:
- A driver’s license or government ID
- Proof of income
- Proof of address
- Proof of vehicle registration
The lender will assess your car’s value as part of the application process. They may ask for a vehicle inspection or pictures of the vehicle to determine its value.
Get Cash Using a Car Title Online
People are struggling financially due to rising inflation and higher prices of products and services. If you’re struggling to pay your bills or lack emergency funds, you aren’t alone.
The good news is you can apply for a car title loan online. The process is quick and easy. Most car title loan lenders have a simple online application process.
- Do apply for a car title loan online to get the cash you need fast
- Don’t waste your time traveling to your lender if you can apply online
If you’re experiencing a cash shortage and need help for a personal matter, there are options. If you’ve been turned down for a traditional loan, you may still be eligible for a loan if you can provide proof of vehicle ownership.
Applying for a car equity loan is a simple process. In a matter of hours, you can have the cash you need to get your financial situation back on track.
Get a Loan Using a Car Title Today
The economy today is difficult for many Canadian families. You may be struggling to pay your bills or handle an unexpected expense. Even if you have poor credit and have been turned down for other loans, you still have options.
At Fast Action Finance, we understand how life’s little emergencies can drain your finances and cause chaos in your life. We’re here to help you get the cash you need.
You could be eligible for a loan using a car title of up to $25,000, and you can continue to drive your vehicle as usual. Contact Fast Action Finance today to apply for a quick and easy car equity loan.