Posts

How to Choose a Lender for Bad Credit Vehicle Title Loan in Ontario

Choosing a Lender for Bad Credit Vehicle Title Loan in Ontario

Much like with just about anything, not all vehicle title loan companies are created equal. Each company has its own policies and its own way of doing things. You have to be careful not to assume that all bad credit vehicle title loan companies operate in the same way. They do not.

So how do you choose the right bad credit car loan company? Here are a few tips to help you out.

Reporting to Credit Bureaus

One of the most important aspects to consider is whether or not the lender reports to the major credit bureaus. Successfully paying off a vehicle title loan can help improve your credit rating. Credit agencies want to see that you are able to borrow money and pay it back on time. However, you’ll only receive this benefit if the lender reports your activity to the major credit bureaus. If they don’t, the credit bureaus won’t find out about the payments that you make and you won’t be able to improve your credit rating by getting a car title loan. Not all lenders report to all of the major credit bureaus, do so don’t assume that this is the case. Always ask.

Interest Rates, Charges, Fees & Terms

You will also want to pay attention to the interest rate that you are being charged. Obviously, a lower interest rate is generally preferable. However, you will also need to focus on the other terms of the loan. Again, don’t assume that all car title loan companies offer the same terms. Read the interest rate documents and the terms closely. Pay attention to any upfront fees and other charges that may be listed in the documents as well.

Is there any Payment Flexibility or Additional Payment Options?

What happens if you are unable to make a payment? What happens if you have some extra money and want to make a larger payment or an early payment? Different companies have different policies regarding these situations. It’s important that you find out this information before you accept the loan.

The Reputation of the Company

It’s also important to consider the reputation of the lender. How long has the company been in business? How many loans do they offer? Are they a trustworthy company to deal with? All of these considerations are important when choosing a bad credit vehicle title loan company. You’ll want to deal with a company that is stable, straightforward and a company that you can trust.

Like our blog? Join smart money club.

FREE SMART MONEY CLUB

What are the Requirements for an Auto Title Loan?

Looking to get an auto title loan? Here’s what you need to know before getting that car title loan.

What You’ll Need to Get an Auto Title Loan

auto title loanA car title loan often makes sense for people who have bad credit. It allows you to get a loan without paying the high interest rates that typically come with other types of loans. It’s certainly cheaper to a pay day loan, which will cost you a very large amount of money if it’s not paid back quickly.

But what do you need to get a car title loan? Here are the general requirements.

One of the most important requirements is that you need to have the title of the car. This means that you will need to own the car outright. If you still owe money on your car, the bank or the lender associated with the loan will still have the title. This means that you won’t be able to get an auto title loan. The same is true if there is more than one person on the car title. You’ll need to own the vehicle outright on its own in order to get an auto title loan.

The vehicle can also not have any other loans against it if you hope to get a car title loan. If the car was recently under lien from another lender, but that debt has since been paid off, you will need to show documentation that proves this. These documents can usually be acquired from the other lender.

You will also be expected to provide some sort of financial documents. While you usually don’t need to have full time employment to get a car title loan, you will need to show that you have the ability to pay back the loan. There typically is no credit check with an auto title loan since you are putting the vehicle up as collateral.

Identification is also required. You need to show proof of ID as well as proof of residence in order to get a car title loan. You will need to show proof of insurance as well.

A car title loan is generally an easier loan to get than many other loans. This is because you are putting your vehicle up as collateral. However, there are still requirements that you will need to keep in mind if you hope to get an auto title loan.

The faster you are able to provide the documents needed, the faster you will be able to get your loan, so it makes sense for you to know what the requirements are. This will allow you to have everything ready when you go in to apply for the auto title loan.

Like our blog? Join Free Smart Money Club.

FREE SMART MONEY CLUB

Why Getting a Car Title Loan is better than a Payday Loan

car title loansIf you are looking for fast cash, you may be tempted to get a payday loan. After all, you’ve likely seen these services advertised in the past and the general idea sounds like a good one. However, if you need money quickly, you may want to consider borrowing against your vehicle instead.

Why? There are a number of reasons.

Advantages of a Car Title Loan over a Payday Loan

One of the main reasons to avoid payday loans is that these loans cost you a very large amount of money.

For example, many payday loan companies charge around $20 to borrow $100 for a two-week period. This may not seem like much at first, but it adds up to over 500% interest over the course of a year.

As you can see, if you’re not able to pay one of these loans back quickly, you’re going to end up paying a very large amount of money. Sure, you’ll be able to get cash quickly, but it will certainly cost you.

 Watch Video: What’s the real costs of a Payday loan?

Another option for fast cash is a car title loan. A car title loan is a loan where you borrow against the value of your car. To get a car title loan, you need to own your car outright.

A car title loan is a secured loan, which means that you usually don’t need a credit check to get one. It also means that you’ll be able to get the cash you need quite quickly. In most cases, you’ll only need to wait a day or two before you receive the money from a car title loan.

A big advantage to a car title loan is that the interest rate that you will pay will be significantly lower than the interest charged on a payday loan.

The actual rate that you will be charged will depend on your particular situation and the lender that you are working with, but it will certainly be lower than the incredibly high rates that are charged on payday loans.

Car Title Loan Tips

If you are looking for a car title loan, it’s important that you work with a reputable company. Not only will a reputable company be easier to deal with, but it will also be more likely to offer you a lower interest rate.

You’ll also want to ensure that the company you are working with reports to the major credit bureaus. Getting a car title loan and paying it back on time can help you improve your credit rating. However, in order to do so, it’s very important that you don’t miss any payments.

Finally, you don’t have to worry about losing access to your car when you get a car title loan. As long as you make your payments, you can use your vehicle in the same manner that you always have. You don’t have to worry about changing your lifestyle just to get an affordable loan.

Like our blog?

Join FREE prudent smart money club. Click below.

FREE SMART MONEY CLUB

FREE SMART MONEY CLUB

Applying for a Car Title Loan?

What do you Need to Know when Applying for a Car Title Loan?

thinking to buy a car

A car title loan is a secured loan where a person can use his or her vehicle as collateral against the loan. A car title loan can be a good loan option for someone who has bad credit or bankrupt or in a consumer proposal. Car title loans are also good options for those who do not have a steady income, such as people who are self-employed, those who work on commission and people who are on pension or disability.

However, there are a few things that you need to know before you apply for a car title loan.

Your Car Must be Paid Off in Full

A car title loan uses your car title as collateral. Therefore, you must own your car title. If you still have payments to make on your vehicle, then the car’s title is still held by the bank or financing company and you won’t be able to use it to get a car title loan.

You Must have Car Insurance

In order to get a car title loan, your vehicle must be insured.

Car Equity May Depend on the Wholesale Value of the Vehicle

In many cases, the amount of the loan that you will be able to get will be based on the wholesale value of your vehicle. This means that higher value vehicles and vehicles that are in better condition will likely be able to get you a larger loan amount.

The Loan Not Only Depends on the Car’s Value

However, the value of the vehicle is not the only aspect that is used to determine the amount of the loan. Several other factors are considered as well. These factors include the cost of monthly insurance, the debt-to-income ratio of the person applying for the loan and the monthly cash flow of the applicant. All of these factors will be considered by the lender and used to figure out what size of a loan you will be able to get.

Your Car Must be in Good Standing

Your car cannot have any other loans taken out against it or any other money owing on it for any other reason.

Ownership must be under the Borrower’s Name

The car title needs to be in your name in order for you to use it as collateral for a loan. You are not able to use a vehicle that is under someone else’s name for a car title loan, even if you are the primary driver of the vehicle. It has to be your car.

Once the loan has been repaid, the car title is returned to the owner. You are able to continue driving the vehicle while you are paying for the loan and you do not lose access to the car as long as you keep up your loan payments.

CLICK TO JOIN FREE SMART MONEY CLUB

CLICK TO JOIN FREE SMART MONEY CLUB

The Benefits of Borrowing Money using your Car

Car_title_loan_bmwThere are a number of benefits to getting a car title loan. Here are the benefits of borrowing money using your car.

The Benefits of a Car Title Loan

Borrowing money using your vehicle as collateral is called a “car title loan.” Car title loans can be good options for people who are short on cash and who have bad credit or an inconsistent income.

However, that isn’t the only advantage to a car title loan. There are a number of other advantages.

Bad Credit is OK

As mentioned above, a car title loan is a good option for someone who has bad credit or very little credit. To get a car title loan, you simply have to have a vehicle that is paid off in full and meet a few other requirements for the lender.

Since the car is being put up as collateral, there is very little risk for the lender. That means you are more likely to get approved for a car title loan than you would be for a personal loan.

You Can Get Money Quickly

Since the car title loan process is very straightforward, you are able to get the money you need very quickly. The lender simply needs to ensure that you own your car and that it is worth at least as much as you are looking to borrow. The process is very simple which means that it is also very quick. You can likely get the money that you need within a day or two, which is great if an unexpected bill comes up that you have to pay right away.

The Loan is Secured

Since the loan is secured and your car is used as collateral, you may be able to get a lower interest rate than you would be receive on another type of bad credit personal loan. For example, when compared to payday loan services, car title loans have significantly lower interest rates. This means that you will spend much less money paying off the loan.

Using a reputable company to get a car title loan is a great way to get a lower interest rate. When you get a car title loan from a trustworthy and reputable lender, you will likely be able to get a lower interest rate and save yourself some money. This is why it is important to do research on lenders and to choose a lender that is reputable and that offers a competitive rate.

You Can Keep Your Car

When you get a car title loan, you don’t have to give up your vehicle. While the lender will hold the title and a set of keys to the car, you still have full access to the vehicle. This is a big advantage as you can continue to drive your car to work, school and anywhere else that you need to. There is no change in your lifestyle other than that you have received the loan.

Have questions? Give us a call or apply online. Contact us here

CLICK TO JOIN FREE SMART MONEY CLUB

CLICK TO JOIN FREE SMART MONEY CLUB

Why Get a Car Title Loan from Prudent Financial?

Why you should get a car title loan from Prudent Financial?

Because Prudent Financial Services offers the lowest rates bad credit car title loans.

Second of all, Prudent loans are open. So if you decide to pay off your loan early, you will get full refund of the remaining interests. (discharge fee for lien release of $250.00 may apply).

Finally, we report to credit bureaus. So start improving your credit history today!

 

CLICK TO JOIN FREE SMART MONEY CLUB

CLICK TO JOIN FREE SMART MONEY CLUB