There are many ways to get car title loans in Canada. The easiest way is to apply for a loan when you have equity in your car and the lender will take it if they don’t receive payment. In this scenario, the lender takes the car title as collateral. If you need help choosing a car title loan, read this article.
Why Car Title Loan?
The main reason you should get a car title loan is it’s the easiest way to secure a loan in Canada. The lender sees your car title as collateral for the loan. Some reasons are as follow:-
- It’s easy and quick.
- It’s a straightforward loan application with few documents to fill.
- You can end up having more cash than you paid for the car.
Bad Reasons To Apply For A Car Title Loan
- You are in a hurry to get transferrer the title to you.
- You need cash quickly and don’t have any time to arrange for other loans from banks or credit unions.
- Are you willing to reduce the value of your car by pledging your title as collateral for a loan.
There are many companies in Canada that offer title loans and car title loans, but some are better than others for different reasons. There are also some things you should look for when applying for a car title loan that can make or break you. The following is a list of the things to consider when applying for a car title loan in Canada:
- Lenders will only approve borrowers with excellent credit scores and extremely good income.
- Look for a lender that will approve you even if you have bad credit.
- There are many unscrupulous lenders out there who are not authorized to give title loans. They will use their lack of authorization to trick you into renting a car for them, forcing you into repossession. Taking your home or other things of value that they think are easily converted for cash. Before you apply for a title loan lender, make sure the lender is authorized by the government to give car title loans. Make sure the lender is authorized to give car title loans by the government.
- Do your research into lenders before you apply. You can check out Consumer Affairs Canada for a list of bad companies.
- Compare rates with different lenders and find the best deal that will work for your situation. The lender with the best rate is not always the one that you should choose.
- If you apply with bad credit, the lender may ask for additional proof of income. They will usually accept pay stubs or tax returns, but they may also require bank statements if they want to see your spending habits.
- Pay off the loan early if possible, because the lender sees your car title as collateral. They have the right to take the car away from you if you do not pay them back on time.
- If you want to sell your car in the future, make sure that selling it does not affect the lender’s rights to repossess your car.
- Some companies let you drive your car while on loan, while some do not. Check with your lender before you take your car to a mechanic or have repairs done so that you don’t do anything that will jeopardize your loan.
- You can do a title search to make sure that the lender is giving you the right information. Before signing any contracts and making any loans.
The Best Ways to Apply
Apply online – The easiest way to apply for a car title loan is to do it online. You can submit your application online and you will get a decision on the spot if you fit their criteria. Most of the lenders you will find online are from Canada. They will usually require you to complete some simple form and verify your identification.
Call Directly to Loan Company – Many companies will allow you to call their loan department directly. In this case, you won’t need to go through a website, which makes the application process faster. You may get an instant approval or they may ask you to complete some forms.
Apply to Cash Store – This is an interesting option for Canadians who want to get a title loan with bad credit. Some lenders will allow you to apply at the store and if they approve your application, they will have their own loan officers contact you.
Submit Detailed Application to Different Websites – If you want to apply for car title loans by mail, then look at some of the different websites that offer this service so that you can compare rates and terms. The online sites usually have high approval rates and are very easy to use.
The Government Loans Program – This is a government program meant to help Canadians who need money quickly but do not have good credit or banks will not give them access to a loan.