This pandemic has made it difficult for people to manage expenses and catering for immediate cash requirements. One can consider going to the bank for a loan or borrowing money from relatives or friends. A bank or traditional loan is a good option if you have a good credit score and you have time to wait for money, An auto title loan in Vernon is exactly what it sounds like, it is a loan that uses title papers of your vehicle as a security. Title loans are useful for borrowers with poor credit and need fast cash. The ease of obtaining a car collateral loan also comes at a cost and that is you have to submit your title papers to the lending institution. But this totally depends on the consumer how he wants to get the money and what suits best to them.
Auto title loans known as auto equity loans. This is because the title of the vehicle is used as collateral, but it’s equity will be going to decide the loan amount that you can borrow. To learn more about whether an title loan is right for you, read below to understand what an auto title loan is, what are the requirements for approval and how it can help or solve your finances.
Specialized Auto Title Loans In Detail
You may have heard of home equity loans before, auto title loans are quite similar to home equity loans, except a car is used as collateral instead of home. The lending institutions do not have this requirement of fully owning your vehicle.
Finally, the market value and working condition of the car determined the car title. Typically, the maximum amount that a lender will extend is the amount of equity in your car. Generally this loan is designed for individuals with bad credit or past financial issues. Apart from people with bad credit, auto equity loans are useful for those who are in an emergency situation and require some quick cash.
Title Loan Requirements
Fortunately, you do not have to worry about your credit score with an equity loan. But there are some other requirements that you should still consider before applying. Below are the general requirements for an auto equity loan.
- A fully paid for vehicle that must not be older than 10 years
- A lien-free title to your vehicle
- A valid Canadian driver’s license
- Proof of your permanent residence
- A proof of your legal age as per respective province
- Vehicle registration & insurance documents in your name
- The second pair of keys of the vehicle that work on all ignition and doors too
Perks Of Car Title Loans
- Relatively long loan terms – Compared to other loan options for borrowers with bad credit, vehicle equity loans have a longer loan term. This fact helps you easily manage your loan payment and pay it within time. The loan period makes monthly installments quite low.
- Almost everyone is eligible – Having good credit is usually one of the toughest criteria to meet when it comes to getting qualified for a loan. To apply for this loan, you’ll be using your vehicle as collateral and submit lien-free title papers. Therefore, you do not have to worry about your debt history, which makes it quite easy to qualify.
- Surrendering your car is not an option – Several lending institutions do not keep your vehicle with them such as Bad Credit Loans Vernon. After getting approval you can collect the money from the institute and at the same time you are free to take your vehicle with you. You can use it as before even in the loan period.
Stop worrying about the requirements, get ready to solve your financial problems and enjoy your life to the fullest.