1-877-804-2742
If you’ve ever been turned down for a credit card because of poor credit, you know how difficult it can be to live without one. Yet, these financial institutions are the leading sources for instant cash loans and lines of credit — and not everyone with a low score qualifies for them.
Yet, if your situation is dire, other options are available to you! Learn about the uses of title loans Red Deer and how they might be helpful to someone with less-than-stellar credit.
What Is a Title Loan?
A title loan is also sometimes called a personal check advance. It’s a secured loan issued by a company based on the value of your car as collateral. Although this is a loan, you don’t write any checks or sign any contracts. Rather, the borrower needs to provide the lending company with a clear car ownership title and a picture ID. When these documents are verified, you will receive your loan in the amount of the value of your vehicle (or some other predetermined amount).
How Title Loans Help People With Bad Credit
People with low credit scores or no credit history often don’t qualify for traditional small-dollar loans. These borrowers can turn to title loans as an alternative source of credit as they attempt to repair their financial standing. Title loans Toronto are useful to these borrowers because they’re available to people with a history of making small payments. And title loans are quick and easy to get.
How Do Title Loans Work?
There are two basic types of title loans: secured and unsecured.
Unsecured Title Loans
Unsecured car title loans Mississauga are loans that aren’t as easy to qualify for, but they can be used as a short-term solution to your cash-flow issues. These loans tend to have higher interest rates than their secured counterparts and offer a more limited repayment plan. You must repay unsecured title loans before obtaining another loan with the same lender.
Secured Title Loans
These loans are secured by your vehicle as collateral, so you do not need to have a great credit score or good credit history to qualify. Secured title loans tend to be more flexible than unsecured title loans. They come with lower interest rates. You must repay Secured title loans before obtaining another loan through the same lender.
What Are The Benefits?
If other financial institutions have turned you down, you may find it refreshing to know that title loans are unsecured. You don’t have to put up any cash as collateral, and you can use the same lender for several loans — even if your credit score is low. Besides, since bad credit car loans in Kamloops are secured, you can rest assured that your vehicle’s title is safe with us, and more, your vehicle will remain intact in the event of default.
The Process
The application process is straightforward and quick. You will need to provide the following information:
- A clear title of car ownership
- A picture ID
- An estimate of the value of your vehicle, provided by an appraisal company
- Your basic contact information (home address, phone number, etc.)
If you’ve decided that a title loan is your best solution for pending financial difficulties, keep researching until you find the best lender available. You don’t want to waste time with too-high interest rates or unnecessary fees or charges.
Car title loans terms and conditions can change after they get approved. So be sure to check with your lender on any changes they may make. It’s also good to do plenty of research before applying for a title loan. You want to understand what you’re getting into before taking the plunge. Contact Car Title Loans Canada for more details at 1-877-804-2742.