Car title loans (also known as vehicle title loans or simply title loans) are a fast and efficient option for short-term loans. And when used properly, they can be accommodating when you’re in a financial pinch. However, it’s important to note: To take advantage of the utility of this loan, you must act responsibly. Failure to do so can make this option more trouble than it’s worth. If you’re considering a car title loan in Edmonton, keep reading to learn what it is and how it can help you.
What Is a Vehicle Title Loan?
A car title loan is a loan based on vehicle collateral. It allows you to borrow money against your car even with poor credit. This arrangement is permissible on the condition you use your vehicle as a form of loan security. When you submit a car title loan application, you commit your vehicle as collateral. So, if you cannot repay the loan, the lender has the legal authority to seize your vehicle.
How Does a Car Title Loan Work?
Car title loans function by allowing you to borrow against your vehicle. Consequently, you’ll require vehicle equity for the loan. This fact entails that if you financed your car upon purchase, you’d owe less than it is presently worth. Most title loans are for nominal amounts, varying between $100 and $5,500, respectively. To qualify, you must have a minimum of that much equity in your vehicle.
Once you receive a car title loan, lenders either supply you with a cheque or deposit the cash into your account. Then you start making your installments. In the interim, you can still drive your vehicle as you did previously. However, if you cease your payments, your lender can seize your car and sell it to reimburse the loan balance.
Moreover, your lender can put a lien on your vehicle when you receive the car title loan. This act makes it legal for them to repossess your vehicle for non-payment.
Car Title Loan Approval
Because your vehicle is used as collateral, you can get a car title loan approved even with low income and poor credit. Applying for a car title loan requires the following information:
- Proof of ownership, insurance, and permanent residency
- A bank statement
- Proof your vehicle is paid for
- Your driver’s license
- A valid car check
You might need to agree to have your vehicle armed with a car immobilizer or GPS. These devices allow the lender to keep tabs on the car. Additionally, you may be charged a fee for installing these tools.
Conclusion
We all fall on hard times occasionally. If handled responsibly, a car title loan may be the “break” you need. At Mr. GoodLoans, we offer title loans even if you have a low income or poor credit. We’re here when you need us. Contact our team today to get approved for your car title loan in Edmonton.
