A car title loan is a short-term, high-interest personal loan that uses the borrower’s vehicle as collateral against the amount of money borrowed. The majority of people who use this type of loan are unable to qualify for other kinds and types of financial loans or options because they suffer from bad credit ratings or have no credit at all! Luckily, most applications can be completed online so there’s never any need for in-person visits with lenders. Before you go through with your application, make sure you know what documents will be needed by reading more below!
Title loans are the best resource for you to call upon when you need help in a tight spot. Several people are using title loans to pay back someone they owe money to, getting a down payment for their next vehicle, or getting caught up on some bills that are behind.
For whatever reason it may be, title loans are a great source to turn to. What’s great about these types of loans is that they don’t affect your credit. To qualify for a loan, you just need to provide a clean title of your vehicle and your name must be on the title. If the bank owns your vehicle, you will not be able to take advantage of this type of loan. Here is how you can get a title loan in Edmonton and what to expect once you have the loan.
1. You need to own your vehicle
You need to be able to hand over your title for collateral for the length of the loan. For you to be able to do this, the bank must not own your vehicle. Your name must be on the title of the vehicle so you can hand over the title.
2. Apply for the loan
When you apply for your loan, you can do it online or in person. Ensure you have a form of ID such as a driver’s license or a passport and be prepared to set about 25 minutes aside to apply. You could be approved the same day or even within 24 hours.
3. Understand the terms
You can keep your vehicle throughout the duration of the loan without exception and you will keep your vehicle at the end of the loan as well. The only thing that is taken is your title for collateral until you pay back the loan. Be sure you carefully study the terms and follow them. The terms are very fair. You just need to hold up your end.
4. Make your payments
If you miss payments on your loan. your title would be kept along with your car. Be sure you make these easily affordable payments and ensure you have a backup plan. These payments are easy to make because they are so small but you need to ensure you have other means to pay them just in case your first stream of income is affected.
Use this as your guide next time you need to get a car title loan. Be sure to Google ‘car title loans near me’ if you have any questions. You can call your car title loan lender to ask if you need to clear anything up. Now go get your loan!