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Simple Facts About Car Title Loans You Need To Know

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Life can throw unexpected financial emergencies any time and it happens usually when we are not prepared.  If we do not have a sufficient amount of savings to meet those expenses, we might get stressed out. The first thing that comes to our mind is to think of getting a bank loan to solve this issue. But a bank loan is not always a perfect solution. This is because everyone does not have an excellent financial history or good credit score.  Bank loans or other traditional loans depend upon your credit score or history! An alternative to these loans is a car title loan! 

What Do You Mean By A Car Title Loan?

A car title loan is a type of secured loan where you can use your vehicle’s title as collateral to get the cash you require. For this, the borrowers are required to have a clear title in the name of their vehicle. These loans are also known as auto title loans, vehicle title loans, or car collateral loans. They assure the lender than if the borrower fails to repay the loan,  they have the right to repossess the car to get their money back.

How Much Money Can Be Provided On A Car Title Loan?

The loan amount that the borrowers get depends on the value in their vehicle that is being used as collateral. The age, make, condition, model, etc of the vehicle decides the amount that you can borrow on these loans. The higher the market value and condition, the more amount can be borrowed! 

Safe And Secure!

When you apply for these car title loans, all your information is kept safe, secured, and confidential. No one will be able to access your personal information given to the lending organization!

People Have The Option to Pay Out Early!

Sometimes if you are eager to pay off your loan early, you can easily go ahead with that without worrying about any kind of penalties! There are no prepayment penalties on such kinds of loans that allow borrowers to pay out before their due date arises!

Are You Allowed To Keep Your Vehicle?

While your car’s title is used to get the loan, you can still get the opportunity to drive it as usual during the loan process! This is one of the major advantages due to which people opt for these loans in case of financial problems.

People With Poor Credit or No Job Can Apply!

Car title loans are one of the best loan options for people with no job, bad credit or no credit. This is because unlike other bank loans these loans are based upon their credit history. There are no credit checks and job requirements associated with such types of loans.  The reason behind this is that the loan is secured against your vehicle and not your credit. Which means that even if someone has bad or no credit, but owns a car that has enough value in it, they can apply for these easily and get cash!

Loan Process Is The Simplest!

The title loan process is the simplest and can be completed without any hassle! You do not have to do much to get your much needed cash. Just make a call to the lending organization or you can easily apply online at the comfort of your home. Fill out the application details, Submit the necessary document which includes:

  • A valid government-issued id, 
  • Proof of permanent residence
  • A Valid driver’s license
  • Registration and insurance documents in the name of your vehicle
  • A clear title in the name of your car
  • The second set of keys to your vehicle 

Some other requirements that are necessary include that you need to be the owner of the car that is not much older and it should have a clear title to it. The vehicle should be free from any kind of financial obligation. Also, you should be 18 years of age or above! Fulfilling these minimum requirements can approve you within minutes and provide cash on the same day!

Interest Rates and Monthly Payments Are The Lowest!

The interest rates and monthly payouts on a car title loan are comparatively low as compared to other loans in the industry.  This makes it affordable for people and helps them pay back in small installments with ease! This is the reason why these are also known as installment loans. 

Repayment Plans Are Quite Flexible!

These loans have quite flexible repayment plans.  The Loan terms are usually the longest and most flexible in the industry which gives people ample time to pay back the loan without any difficulty!

To solve all your financial problems instantly, then a car title loan can act as a helping hand in getting your life back to normal! This is a great and secure source that provides cash urgently. 

 

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Ethan is a content writer at Canadian Cash Solutions. He has a Bachelor’s degree in English Literature from the Saint Francis Xavier University and a Master’s degree from The University of British Columbia. He loves to write so, left his part-time teaching job and started writing blogs and articles for the websites. He has changed his passion as a source of earning. Ethan lives in Scarborough and is a native of Antigonish, Canada.