Car equity loans, also known as title loans, are a type of secured loan where the borrower uses their vehicle as collateral to secure the loan. These type of loans, however, comes with potential risks.
This article will examine the benefits and potential risks of getting car loans in Edmonton and how Mr. GOOD Loans can help!
What is a Car Equity Loan?
If you are in a situation where you require emergency cash in Edmonton, car equity loans can help you access the money that you have tied up in depreciating assets.
You have worked hard and acquired assets (Automobiles, Motor Cycles, RVs, and Power Sport items). However, most of these assets depreciate over time, some faster than others. Unforeforeseen circumstances have made it necessary to access cash, and a car equity loan can do it. The sooner you access the equity in these assets, the sooner you can get a cash loan to cover your emergency.
Loan Requirements
A few requirements are necessary before your car loan application can be finalized. With Mr.GOOD Loans, once these criteria are met, you can get instant approval and drive off with cash!
- 18 Years or Older & Valid Canadian Drivers License
- Positive Equity In Your Vehicle & Proof Of Ownership
- Collision & Comprehensive Insurance
- Insurance & Registration In Your Name
- Proof of Address
Potential Risks of Car Equity Loans
In Edmonton, car equity loans can be an easy way to access cash, especially for borrowers with poor credit. However, if not careful, they can be costly and risky. Here are some things to consider with these types of loans:
- High-interest rates
- Additional Fees
- Risk of repossession
In most cases, lenders require applicants to obtain credit insurance if they do not have comprehensive or collision coverage. Loan payments are covered by credit insurance if the car is damaged, but this insurance is an additional expense.
Furthermore, if you cannot make your payments, your lender may assume ownership of your vehicle.
Why Choose Mr.GOODLoans?
While many lenders secure loans by holding onto your vehicle, with Mr. GOOD Loans, you can keep driving your car during the repayment period!
Mr. GOODLoans offers a quick and easy approval process. Most lenders have inflexible lending policies, making getting fast cash challenging. Mr. GOODLoans offers loans that provide the money you need while allowing you to keep your vehicle.
We also offer same-day title loans with the lowest interest rates. So if you require an emergency cash loan, contact us today!
