Getting access to short-term cash during emergency circumstances is no longer a concern for you. Especially, if you are living permanently in Canada and earning a regular monthly income. You have heard about car title loans online Canada where the collateral is required as the sense of security to obtain much-needed funds. Relation to that, title loans on cars are one of the best financing offers available for all those owning their own car and getting a loan immediately in a hassle-free manner.
If you do not know more about title loans on cars, then we are here to provide valuable, detailed, and useful information on the same. So, stick to this blog for the next 4-min and get to know more about car title loans in Canada based on the following few key points.
- What are Title Loans on Cars?
- How Does this Loan Work?
- Check Out the Real-World Example
- Key Benefits of Availing Title Loan on Car
- How to Get Quick Approval of Car Title Loan in Canada?
- Possible Alternatives of Car Title Short Term Loan
- Final Note
Now, let’s discuss each point thoroughly.
What are Title Loans on Cars?
A car title loan is a form of short-term credit available only for Canadians living there permanently and earning a decent set income. It is meant for those only who own their car free from any previous loan or credit. Now, based on having a permanent car status, you can apply for this loan online by declaring your car as the necessary collateral against the loan offer.
One of the essential things to know about a title loan on a car is that you can get the loan amount equivalent to the current market price of your car. It means to say, it is a short-term level personal loan offering for all those be needing a decent amount of cash and can only be paid in installments.
Thus, to become qualified for such a small yet personal installment loan, the first and foremost thing you need to showcase is a permanent car status. Rest it all depends on your age limit, employment details, permanent residentship of Canada, and valid along with complete personal details.
How Does this Loan Work?
Now, you know the introduction of car title loans in Canada but should also know its working criteria. Concerning the same, let’s get to understand how to do car title loans work. Such is the short-term yet personal installment loan in which the loan amount depends on the current value of your car. The time period for the loan falls between 3 months to 3 years depending on your financial requirements.
Another important thing to notice about car title loans is that it has a higher interest rate that comes to around 60% APR. When it comes to actually analyzing the loan amount, then car title loan lenders will provide at least 50% of the total value of your currently owned car.
So, simply to say, you can apply for this loan online against at least 50% value of your car, pay back the sum in easy installments, pay slightly higher interest charges, and take back your car ownership once the loan is completed.
Check Out the Real-World Example
To understand the deep insights of car title loans in Canada, it is better to look at our given example. For example, if you own a car in Canada with a total market value of $2500. Now, when you apply for a title car loan, then you can get at least a $1250 loan amount for the desired choice of the term period. In terms of interest, at least you have to pay 20% charges on the loan itself. So, if you calculate the annual interest rate like this way, then you would have to pay 240% as the interest charges.
Key Benefits of Availing Title Loan on Car
From the above information, it is clear to say the fact that a car title loan is something beneficial to apply for during emergency circumstances. Apart from that, there are other benefits of this particular loan as well.
* FAST TO APPLY FOR: –
Online is the best medium to apply for car title loans in the shortest possible time. Automatically, it is fast to apply at any point in time even from your smartphone itself. Documents Required: –
- Driver’s License
- Valid government-issued ID.
- Clear title on your vehicle.
- An extra key to your car
* CONVENIENT LOAN OFFER: –
Even if you have bad credit in your profile, then also you can apply for such car title loans conveniently from any sort of circumstances.
- No Credit Check
- 1 Hour Approval
- Open Loans Only
- No Pre-payment Penalties
- We are the Direct Lender
- Cut middleman/broker cost
- 100% Confidential
* NO CREDIT CHECK REQUIRED: –
Obviously speaking, you need not undergo the credit check process which is not at all required in this particular loan offer.
* LESS DOCUMENTATION: –
Of course, you will be asked to provide minimal documents in terms of personal details, car details, and employment details.
* STILL YOU OWN A CAR: –
Even if you provide your car as collateral, then also you can still own your car, drive the same, and keep it with you.
How to get quick approval of car title loans in Canada?
Undoubtedly, a car title loan is something different from other personal and short-term loans. You can apply for it online from any point in time and from any device you like. There is no such requirement of visiting a bank, credit union, or any traditional credit department. All you need to do is apply online by getting your personal, employment, and car details ready for you.
Possible Alternatives of Car Title Short Term Loan
If you look at other options apart from car title loans, then you have few options to look after.
*PERSONAL LOAN: –
It is another convenient way to apply for short-term personal loans while meeting personal expenditures. The difference between this and a car title loan is the collateral. Here, there is no requirement of giving anything as security.
*BALANCE TRANSFER CREDIT CARD: –
Get this type of financial assistance by getting a direct balance transfer from your credit card. You can get the same for the next 6-10 months and repay the balance on a monthly basis.
*START SAVING FUNDS: –
Try to cut down your cost, earn extra sort of income, and save funds to become ready for the next sort of financial emergency.
Taking a car title loan is a beneficial source of funding for people in Canada to become financially secure and take care of monetary hardships. You can apply for the same online by showing a little bit of information in a hassle-free manner.
Frequently Asked Questions
What is the purpose of title car loans?
The primary purpose of the title car loan is to secure a short-term loan offering by declaring your own personal car as collateral. It is one beneficial way of sourcing the cash that you require during emergency circumstances.
What is the downside of title car loans in Canada?
The only disadvantage with the car title loan in Canada is the short period of time. Since you apply for the amount at least 50% equal to the car value, then as an owner, you get very little time to repay the loan money in small installments. So, it is essential to extend the time period of the loan to a longer extent and pay the same easily.
What is the difference between auto loans and car title loans?
Both the loans are different in some way or the other. Auto loan as you can is the loan you apply for when buying a car of your own choice. On the other side, a car title loan is something you apply against your already owned vehicle from an online private lender (Why Use a Private Lender). So, both the loans have a different set of appeal, terms and conditions, amount, and rate of interest as well.