Everyone knows that technology is evolving day by day and digitalization is covering all the sectors. This advancement has brought a revolution in our lifestyle. Today spending an hour without gadgets such as a tablet, mobiles, washing machine, refrigerators, etc. is quite tough. More devices such as Alexa, robots are becoming a part of our life. We all are running and working hard to get a comfortable life. Maintaining such a lifestyle is normal when life goes smoothly as per our planning for a car title loan.
People manage to save after fulfilling their needs and wishes. But there are circumstances when we cannot afford such a lifestyle even on using the savings. These situations include sudden house repair, emergency medical bills, overdue credit card bills, etc. This somehow unbalances the budget and burns a hole into our pockets. Several people decide to sell gadgets for an urgent need of money. Well, for how long will you sell your belongings? This means that it is not a good idea and not a reliable solution. So, what to do to get rid of the financial troubles that one is facing.
A car title loan is the best solution. Several people who need cash immediately apply for this loan because they get easy approval. This is a secured loan where the borrower uses his car or any other vehicle as collateral. People prefer vehicle title loans over other traditional loans due to fast approval and the easy application process. Well, before applying for one, it is necessary to understand the preliminaries of equity loans.
Points To Consider Before Getting Car Title Loan
1. To qualify you must have your vehicle
To apply for this loan one should have a vehicle like a car, truck, etc. This is because the title to the vehicle will be used as collateral and you will be going to get the money against it. Thus it is necessary to own a vehicle to qualify for this loan. You must have a clear title to the automobile that you own and you have to give it to the lender. The title should have your name on it. Remember your application will only be processed further if you provide a clear title to the lender.
2. The loan amount depends on the equity value of the vehicle
The loan amount that you can apply for is the value up to which you can get the money as a loan. This amount depends on the equity value of the vehicle. The equity value of your vehicle will be calculated based on its market value and working condition. You can only get a loan less than or equal to the equity value. Make sure your car should not be older than ten years.
3. No credit check is done
Your credit score will not affect your eligibility for an auto title loan. Why? Car title loan are secured loans which indicates that they are backed by collateral. As you are using your vehicle as collateral, the lending institution will not need to dig deep into your credit history just to determine whether it is risky to lend you money or not. This is why a majority of people with low credit scores rely on title loans to obtain the money needed.
Although vehicle title loan companies are heavily regulated, you need to know what kind of company you are borrowing from. Canadian Equity Loans is one of the best and well-known lending institutions that offer loans without any credit checks and within a few minutes of getting approved. Also, the lending institutions have nothing to do with your permanent income source and will give you a loan even if you are in between jobs.
4. You can still use your vehicle
Using your vehicle title as collateral is not the same as using your vehicle as collateral. The difference is that in the former you use the title and hand over the document to the lender and in the latter, you will give your vehicle. If you are approved to get a vehicle title loan, the lender will not occupy your vehicle. You will not be asked to surrender your vehicle to the lending institution. You can continue using your car as you were doing before, so taking an auto equity loan will not only help you get money but you can also enjoy it.
5. You can decide how to spend your money on a car title loan
Other types of loans have their own rules about how the borrower can spend the money he borrowed. But these rules and restrictions do not apply to title loans. If you get approved for this loan, you are free to spend the money as per your requirements. The lending institution has nothing to do with how and where you are going to use your money.
There is no doubt that car title loans can help you provide cash instantly. Therefore, if you are also in a financial crunch, get a car title loan and enjoy your life as you were doing it before.
