Getting a title loan is not a tough or a hard job. People prefer this loan because of the ease that one gets with this loan. Car title loans are a kind of secured loan that one gets in return for keeping the car as collateral. These loans are designed for people who need instant cash to pay bills and manage debt to cope up with emergency situations.
If you own a vehicle it will be quite easy for you to get this loan i.e. by keeping the vehicle as collateral in order to get the loan. There are several aspects that you need to cross-check in order to get the loan. Let us have a look at these aspects.
1. To get a car title loan, you will be required to own a vehicle
This is one of the keys and the primary things needed for you to have in order to get car title loans. You will be required to have a lien-free vehicle. Also, the vehicle should not be older than ten years in order to get this loan. This loan tends to range between $100-$5500- an amount that is typically equal to 25%-50% of the value of the car.
To get this loan, you should be able to present the title papers of your car and also show 100% ownership i.e. registration and insurance of the car under your name.
If you get approved for the loan, you will be required to hand over the title papers of your car to the lender for the loan tenure period in exchange for the loan. Once you have paid the complete amount of the loan, you will get the title papers of your loan back.
2. Car title loans have high fees and interest rates
When you get a car title loan, it is uncommon for lenders to charge around 25% of the loan amount per month to finance the loan. For instance, if you get a 30-day car title loan for $1000, the fee will be 25% and you will be required to pay $1250 and the additional fee to pay off the loan at the end of the month. The annual percentage rate will be more than 300% and this is much higher than any form of credit including credit cards. When you get the loan, the lender must tell you the annual percentage rate and the total cost of the loan. You can make use of this information and compare it with other lenders to find out the best deal for you.
3. If you cannot repay the car title loan, you might lose your vehicle
If you get yourself car title loans and find yourself in a condition where you happen to fail to repay the loan amount then you might end up losing the car. So it is always suggested to plan the finances beforehand while getting the loan for yourself to meet the finances with ease. So that you do not put yourself in trouble later on after getting the loan when you find it hard to pay back the loan amount.
These are the aspects that you should look into before getting or signing up for this loan. Once you are sure about getting this loan to meet your financial crisis then you can look forward to the ways to apply for this loan and get this loan for yourself. Now, you must be wondering about the ways to get this loan. Let us have a look at the same.
How to apply for car title loans?
To apply for the loan, you will be required to follow certain steps. Let us have a look at the steps that you will be required to follow in order to get the loan.
Step1- You will be required to fill out an online application form in order to get the loan. The application for the loan will be available at the online portal.
Step2- After filling out the online application form you will be required to submit a list of documents in order to get the loan approval from the lender. The list of documents is minimal and includes the following-
– A lien-free vehicle.
– The vehicle should not be older than ten years.
– Registration and insurance of the vehicle under your name.
– Proof of your permanent residency in Canada.
– Proof of your legal age according to your province.
– The title papers of your car.
These are the documents that you will be required to present in order to get the car title loan.
Step3- After submitting the list of documents, you will have to wait for the loan approval. After the approval of the loan, you will get a call from the experts to discuss the loan amount with you. The amount of the loan will depend on the condition of your car and also the market value of the car will be kept in mind.
These are the steps that you will be required to follow in order to get the cat title loan. People opt for this loan for several reasons and one of the foremost reasons why people opt for this loan is the process of the loan application. The process to apply for the loan and getting it approved is simple and quick. You can get the loan approval for the loan the same day you apply for the loan.
There are people who avoid loans for the procedure it revolves around for one to get the loan but with this loan, one does not have to worry about the long process of documentation or the paperwork and also is not required to wait for days, or in long queues in order to get the loan. The reason behind the same is that the process to apply for the loan and getting it approved is simple and quick. If you are certain about getting this loan then you might consider seeking help from Canada Car Cash in order to get this loan.