Many times people find themselves in situations wherein they need cash on immediate basis but just can’t figure out a way. So this post will be a helpful guide for those who own a car and can make the best use of it apart from just driving it. This post will tell the readers about car equity loans and how you can use your car to obtain short term and long term loans.
Why Is The Title Important For Title Loans?
A loan against a car title is a secured loan in which a car is used as collateral to borrow funds. At Equity Loans Canada, in order to get a title loan you need a clear car title . By clear title we mean there shouldn’t be any liens on it. This title acts like a security. One thing is clear that people with clear title can get these loans. So, the question arises, can people with lien on their car title get a quick loan too? You’ll get the answer of this question with a lot of clarity in the next part..
What Is A Lien On A Car Title?
When people buy a car on loan from banks or from car dealers, the title of the car gets transferred in the name of the bank or the dealership. It gives them the sole right to possess the title until the loan they have taken is paid in full. Possessing a title means that the lender gets to keep the original copy of the title. All other legal rights are also transferred to the lender. This is done in case the borrower defaults or isn’t able to pay the loan back, the lender has the full rights to repossess the car to recover the loan amount from it.
Can You Get A Loan With A Lien On Your Car Title?
The answer is yes. Some lenders out there consider such cases as well. Let’s try to understand this with an example. Let’s say you have $2,000 loan outstanding to pay to the bank and that bank has marked a lien on your car title for the same. But you want instant cash and your car qualifies for $6,000 instant car collateral loan with a lender. In this scenario, you can ask your new lender to pay out your pending loan to the bank hence clearing the title of the car from the lien. Now the total amount you’ll have to pay to the lender as principal will still be $6,000 before any interest of course. And you would get the difference which would be $4,000 to use in whatever way you wish. It’s a win-win situation for all parties.
What Are The Requirements For A Loan Against A Car Title?
A car title loan or as it’s also called car equity loan is a very simple and secure kind of loan. To get fast cash from Equity Loans Canada all you have to provide is:
- A vehicle not older than 2010
- A fully paid off vehicle that has a lien free title
- Registration papers along with insurance documents (collision included)
- A Canadian driver’s license
- Proof of permanent residency
- Proof of legal age
Does a Credit Score Matter?
The point is very simple and clear. If you have a bad credit score and stuck in a money crunch, don’t even think of going to a bank for loan. All you are going to get from them is rejection with a bad credit score. Loan against a car title from Equity Loans Canada doesn’t consider a credit score at all. Your poor credit history or no credit history has no part in the loan process at all..
So next time if you are in need of quick cash, call us (toll-free) 1-844-567-7002 or fill out our online application to get an estimate today.
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