Know Everything Before Applying For A Car Title Loan
A car title loan is also referred to as a vehicle title loan. It is a type of secured loan where the borrower can use his vehicle title as collateral to borrow funds with no credit history required. If you need instant funds, there’s no more efficient way to get it than a Car Title Loan. When applying for this title loan, prepare to show the lender a clear title, proof of insurance, driver’s license, and proof of your permanent residence. You will be able to get approval for the loan on the same day as you provide all the documents.
To Get A Title Loan, You Need To Own Your Vehicle
Your vehicle is utilized as security to apply for a vehicle short term advance, which implies you should claim your vehicle to meet all requirements for a credit. You will need to provide a clear vehicle title for your car, motorcycle, or truck during the application process. The vehicle title must have your name on it, or your application will not be processed.
The Amount Of Loan Depends On The Vehicle’s Value In Market
The amount of loan totally depends on your vehicle values. The loan amount will be less than the value of the collateral, which is why the amount you are approved for will depend primarily on the value of your vehicle.
No Credit Check Required
Your credit score won’t affect your eligibility for a loan. In order to obtain a vehicle title loan, you don’t require a good credit score. Because you are using collateral, the lender won’t need to dig deep into your credit history to determine if it’s risky to lend you funds. There is no credit check or job required in order to get vehicle title loans. This is why many people with low credit scores rely on car title loans to get instant cash.
You Can Still Drive Your Vehicle
The lenderdoesn’t store the car as security, you can continue to use your vehicle during the entire loan period. You are allowed to utilize your vehicle.
Competitive Interest Rate
Car title loans are often short-term loans, and lenders may provide competitive-interest rates. Before applying for title loans make sure that you compare the interest rate offered by the lenders, it may help you to get a loan at the lowest interest rate.
The need for urgent money can happen at any time. And getting money from the bank, or other private institutions takes months to get approval, and also you need to have a good credit score to get approved for the loans. While with this title loan you will get instant approval on loan and will get cash on the same day as you get approved.
Process Of Getting Car Title Loans
Step 1: Apply for the loan
If you own a fully paid vehicle that is no older than ten years, you can easily apply for a vehicle title loan. To apply for the loan you can call the lender or visit their website and fill the application form there, or you can contact one of their agents.
Step 2: Submit the documents
After applying, you will have to submit a few documents related to the vehicle. And these are:
- Proof for legal age as per your respective province
- Registration and insurance papers of the vehicle in your name
- Spare keys to your vehicle
- Your valid Canadian driver’s license
- A lien-free title to your vehicle
- Proof of your permanent residence
- A fully paid for car that’s no older than 10 years
Step 3: Vehicle inspection
Just after submitting the documents, you will be asked to bring your vehicle to the lender’s store nearest to your location for inspection. Well, the lender will inspect your car for its market value and its working condition. The loan amount is totally based on the market value of your vehicle. That is why this phase is very important.
Step 4: Get the cash you need
After the inspection, you can easily get the needed money and also keep it during the entire loan period. You don’t have to surrender your vehicle to the lender in order to get a loan. You are free to use your car even during the loan period.
So, whenever you find yourself stuck and some kind of cash crunch bothers you, you can get in touch with Canada Loan Shop for instant cash, as they are available 24/7.