Car title loans are very popular today but still so many of us don’t know much about this financing solution. Below are some of the frequently asked questions on Bradford West Gwillimbury car title loans. Read them before securing one.
Why Are Car Title Loans Preferred?
People turn to car title loans instead of running to other traditional loans offered by lending institutions because of the benefits they offer.
- Car title loans offer fast and easy cash approval. Hence, you get your cash when you need it.
- There is no credit check requirement when you secure a car title loans. Therefore, good or bad credit is not a crucial factor for title loan approval.
- Unlike other financing services, car title loans offer very competitive interest rates and repayment plans.
- The best thing about Bradford West Gwillimbury car title loans is that even when you use your vehicle as collateral, you can bring and drive it home with you.
How Much Can I Borrow?
The amount of cash that will be approved to you will depend on the equity of your vehicle. Equity value is the purchase price of your vehicle less the amount you owe. But some companies are willing to offer you a higher amount. It really depends on the lending agency where you apply your car title loan from. Hence, it is very important to choose your lender wisely.
What Are The Risks Involved?
All financing services come with risk attached. With car title loans, you get the risk of repossession. Repossession is when lenders will take away your car from you because of your permanent defaults in repaying your dues. By knowing this risk, you can keep your vehicle safe while you are on the loan. When borrowing a car title loan, it is very important that you keep your due dates in mind so that you won’t have late payments and therefore lessen your risk of repossession.
Can I Have More Than One Car Title Loan?
A car title loan, unlike other loans, is a type of secured loan. This means that you can use your car or vehicle as collateral for the loan. But as previously stated, you don’t need to physically submit your car to the lender. What is required by the lenders is the title of your car. They will put this document on hold during the loan term while you get to bring your car home with you. Unfortunately, a person can never have more than one car title loan for one vehicle. There is this 1:1 vehicle to car title loan ratio. However, if you have multiple cars, you can have as many Bradford West Gwillimbury car title loans as your vehicles.