Author - Fast Action Finance

collateral loan

How Can I Obtain a Collateral Loan?

There are many instances in one's life where you might need a great deal of cash fast. You might be in some sort of emergency situation, or you might need the funds to start a business or some other personal enterprise. If you have a less than stellar credit score, securing a loan from a money lender can be difficult. It can be especially difficult if you need the money fast. Luckily, there are other options available out there if you need money now. A collateral loan is a loan in which an object of significant value, such as a vehicle, classic/collector's vehicle, equipment, etc. is left in the possession of the lender and serves as collateral for the money that you want to borrow. How can you secure such a loan and what else do you need to know? Read on for more information.

What Is a Collateral Loan?

There are many, many different ways to get a loan out there. The most common situation for loan seekers is to go to their bank. Banks and other financial institutions weigh the amount of risk when lending money to people. A strong credit score from an individual gives the moneylender more confidence that they'll see the money they lend back on time with interest. If you don't have a strong credit score, you might need to take other steps to help money lenders feel confident in your case and lessen their amount of risk. Borrowing money without any type of collateral is known as an unsecured loan, while a collateral loan is known as a secured loan. Individuals can offer any type of property with high value as collateral for their loan. Vehicles, whether higher end or collectors/classic, construction equipment and other such high-value assets can help to secure money when you need it. How does it work? Your collateral lessens the risk of the lender. You let the lender hold the collateral during the term of the loan and get it back once the loan has been paid in full. If you fail to pay back the loan, or make any alternative arrangements, the lender can sell the asset that you've offered as collateral. That means in extremely rare cases failure to pay means you may lose your pledged collateral. The lender will then sell the asset for the highest amount possible and use the proceeds to repay the loan, and give you any amount received that is higher than what is owed. You also need to outright own these assets in order to borrow against them. But as long as you own a high-value asset, you can obtain a collateral loan. Assets should be easy to liquidate to count as a form of collateral. Vehicles, classic/collector vehicles, construction equipment are a great examples, while a rare china set may be less likely to be approved. If you need money fast, there's no more efficient way to get it than a collateral loan.

Advantages of Collateral Loans

There are a number of reasons that individuals attempt to borrow against their vehicles, equipment or other assets. The main reason is that you have a much higher chance of being approved when you apply for a collateral loan as compared to a traditional, unsecured one. If you need money fast, you might not have time to go through the application and waiting process for an unsecured loan, especially if you might just get rejected at the end of it all. Since you're reducing the lender's sense of risk, you might also be able to secure a larger loan than you would if you were applying for an unsecured loan. Depending on how much money you need to borrow, this can be a huge advantage. If your money is tied up in various hard-to-sell assets, borrowing against them can help you get liquid fast. Selling your car for cash, for example, can take a great deal of time and effort. Borrowing against it can get you the money you need at a much quicker pace. Collateral loans also offer a great alternative to less-than-preferable forms of borrowing money. No one wants to have to ask friends and family members for money, but many feel as if they have to take this step after being turned away by traditional banking institutions. There is a higher risk associated with collateral loans. But if you feel confident that you can pay back the money borrowed, they offer a perfect and convenient alternative to other lengthy and restrictive processes. You can find a collateral loan lender that can work for you to create an arrangement that works for both of you.

How to Secure Collateral Loans

If you have a car title or other asset ready to borrow against, what is your next step? There are a variety of money lenders who accept collateral offers in exchange for loans. National banks and community banks will both offer such loans. If you're already a member of a bank, you may prefer the familiarity and convenience of visiting your local branch. That being said, many people avoid going through banks because of the long wait times and restrictive business hours. If you need money fast, going through a bank can delay the process. There are many online money lenders that accept collateral loans. With these lenders, you can apply online from the comfort of your own home. An online application usually only takes half an hour to complete and you can be approved at a much faster rate than that of a traditional bank.

Your Car Title as a Collateral Loan

Need money fast and want to borrow against your vehicle? The above information should give you the basics on what you need to know about obtaining a collateral loan. Have more questions? Give us a call and let us help.
car title loan

6 Car Title Loan Management Tips for Easy Payments

Using your car as a collateral to get a loan is sometimes the best option you have. A car title loan can be your savior when you need money urgently. But just like any other loan, payment can be easier and faster if you follow the right loan management tips.

Have you taken a car title loan or are thinking about getting one? Here’re six ways to help you manage and pay your loan without suffering financial distress.

Round Up Your Payment Amount

You should round up your scheduled payments to the nearest $10, $20, $50, or even more. It’s a subtle way of paying more without feeling like you’re paying extra. If you were to pay $215, you can decide to pay $250, which is an extra $35 per month.

After 12 months, you’ll have paid $420 more, which is almost two additional payments. It means every year you’ll be knocking almost two months’ payment off your payment duration. You end up finishing paying your car title loan earlier than expected and free yourself from debt.

With that motivation, you don’t have to stick to one payment roundup. You can keep on bumping up your payment to a bigger number, which will translate to a significant cut down on interest and earlier loan repayment. Since after a predetermined amount of time, typically six months, there’s no penalty for paying your loans earlier, there’s no need to wait for the entire loan duration to finish up payment.

Avoid Missing Payments

Missing a payment is one of the biggest mistakes to avoid while paying your loans. It’s going to hurt you financially. It makes you fall behind on your scheduled payments, can subject you to penalties, and you'll be paying more if the loan is extended because of any missed payments.

The more you default, the more you may sink your credit score to the point it will be difficult to access loans from most lenders in the future.

If you are on the verge of missing your payment, consider cutting down on other monthly expenses such as eating out, fuel, and entertainment to save the situation until you get back on your feet. Also, most title loan lenders are reasonable and will move a payment if you call and ask.

Pay More Often

Instead of the monthly payment schedule, you can split the monthly payment and make payments every two weeks or even weekly. For example, if you’re paying $200 every month, you can instead, pay $100 every two weeks, or $50 every week.

If you pay $200 monthly, in a year you would have paid $2400. But if you pay $50 weekly, by the end of the year (after 52 weeks), you would’ve paid $2600, which is $200 extra every year. And you’ll be saving on interest and paying your loans in a shorter time, without much struggle.

Therefore, arrange with your lender or enquire about the possibility of paying your loans weekly or biweekly.

Make One Extra Payment

Sometimes you don’t have the money to commit to a weekly or biweekly payments. That shouldn’t worry you. You can make one extra payment every year and still get the same results.

You can save some money equivalent to or more than your monthly payment and pay it off at the end of the year. If you pay $250 monthly, you can look for an extra $250 or more and pay it in any month or at the end of the year. Use your bonuses from work, tips, or tax refunds for the payment.

The advantage of this method is that you have a whole year to look for the extra amount to pay. It’s favorable even to those who are struggling financially. Again, don’t limit yourself to one extra payment.

You can make several extra payments in a year if you have the opportunity to do so.

Get an Extra Source of Income

If you can find a way of making more money than you already have, it will get easier to pay your loans. Use the extra income as an extra payment to your car title loans. If you make $30 monthly in your side hustle, that’s an extra $360 of your loan payment every year.

Again, in the event of an emergency, the extra income can come in handy as you would use it to repay your car title loan. The extra income will save you from defaulting in times when you’re financially down.

With the additional source of income, you can combine all the above-listed methods to not only pay lower interests but also complete your car loan repayment earlier.

There’re many ways of making the extra income: you can rent your car, use it as a cab, sell DIY crafts, take up online jobs, supply products, and much more.

Refinance and Renegotiate With Your Lender

Car refinancing is where you revise the payment rates, payment schedule, and terms of the previous credit agreement. It involves the reevaluation of your credit terms and credit status. If you succeed, you'll be paying less interest in your subsequent loan repayments.

Thus, it creates a pathway to repay your loan faster. Refinancing is a good option if your new interest rates are lower than the current interest rates and the total saving amount outweighs the refinancing costs.

When you’re in deep financial trouble and paying the current title loan becomes difficult, you can consider getting help from your lender to ease the repayment. Your lender may understand your situation and renegotiate a new deal that can work for you.

Rather than defaulting your car title loan repayment and facing the consequences, discuss with your lender on the way forward.

Why You Should Pay Your Car Title Loan on Time

Apart from saving on interests and reducing the overall term of the loan, you will save a lot of money in the long run if you pay the loan faster. There’re many things you can do with the savings. These include:

  • Start a new business
  • Boost your existing business
  • Save for your retirement
  • Repay other debts
  • Cater to the household or personal needs
  • Travel or pick up a hobby

What's more, you'll save yourself from the stress and anxiety that comes with paying loans and defaulting due to unforeseen circumstances. 

Are You Looking for a Car Title Loan?

Coming up with a title loan management strategy enables you to repay loans fast, on time, and with favourable interest rates. 

Are you looking for a car title loan? You don't have to be employed or have a high credit rating to get one. Contact us today for a fast and secure car title loan.

Auto title loan

How to Value Your Car for a Title Loan

How to Value Your Car for a Title Loan

Everyone gets in a jam from time to time. Whether it's a traffic jam or a financial jam, we may feel stuck and impatient for answers. 

Financial jams are even harder to navigate at times. As we've been told since we were kids, "money doesn't grow on trees." So, when hard financial times hit, we may be at a loss on how to correct the situation. 

Getting an auto title loan is one solution you can explore. Auto title loans have no relationship to auto car loans. Although, an active auto loan may affect your ability to get approved for an auto title loan. 

Auto title loans can be secured online, at title lender's storefront, or sometimes at a bank or credit union. These loans take the value of your car and offer you a short-term loan. In return for the loan, the lender will place a lien against your vehicle as collateral.

It's worth noting that auto title loans aren't for everyone. They are typically short-term loans that require repayment over a shorter period than a mortgage of a bank’s term loan. They are generally used for emergency situations and not typically for entertainment or other frivolous purchases.

Want to learn what your car is worth for an auto title loan? Read on to find out.

Auto Title Loan: What's My Car's Value?

Auto title loans help people to get back on their feet when they need financial assistance. These loans, like any other loan, need to be taken seriously. While they are often easy to obtain, they must be paid back like other financial responsibilities.

Before you determine if an auto title loan is right for you, ask the title loan lender what repayment schedules are available and match the options to the one that best matches your needs and financial abilities. While most of us prefer to pay back a loan as soon as possible, if this is not what is best for you, then make sure that it is structured so the what you have promised the lender is what you can afford. Many title loan lenders will allow you to renew your loan, with or without getting new funds if the original payment structure is not working for you, but it is better to set it up correctly in the first place so you can keep your obligations for repayment from the beginning.

If you do want to get an auto title loan, then it's imperative that you find a quality lender. Find a lender with great customer service, that values transparency, and is willing to explain their processes in detail to you. 

Before you speak with any lender, you may be wondering exactly what your car or vehicle is worth. Explore the following ways to determine the value of your car for an auto title loan.

1. Canadian Black Book

Canadian Black Bookis a great tool for determining the value of your vehicle. To use it, you can first start by going to the Canadian Black Book website. 

From there, you can put in your car's make, model, and year. You can also add in any features which may increase or decrease the value of your car. 

Using Canadian Black Book gives you an objective estimate of what your car is worth. But, keep in mind that this doesn't guarantee how much a title loan company will give you for your vehicle. In fact, auto title loan companies tend to offer 25% to 50% of the car's value. 

Canadian Black Book will give a starting place to determine how much you can receive on a title loan. This will help you to negotiate with auto title lenders. It will also help you to choose the best auto title loan lender to meet your needs. 

2. Equity

The equity you have in your car can play a major role in how much the auto title loan company considers it be worth. Many companies require that you own your car outright. However, some companies may take into account the value of the car and the equity you currently have in the vehicle. 

The more equity you have, the more money you can receive from an auto title loan. However, if you currently do not own your car outright, you should thoroughly consider whether or not an auto title loan is a good idea. If you get an auto title loan while paying off an auto loan, you will have two repayment schedules to manage.

This could lead to a mound of debt that will require servicing that could cause you to neglect other bills as they come due.

3. Government Restrictions

Each province and country have rules and regulations that affect auto title loans. Canadian provinces do not set any minimum and maximum amounts that a potential customer can borrow on auto title loans. However, you can expect the auto title lender to lend based on their determination of your vehicle’s value.

Research your vehicle’s value to get a good idea of what the auto title lender will lend based on your vehicle’s value.

4. Appraisal Procedures

Each auto title loan lender has different appraisal procedures. These procedures may value your vehicle at more or less of what Canadian Black Book values it at.

Furthermore, some auto title loan companies will only offer you a loan based on the trade-in value. The trade-in value of your vehicle is the amount of money a dealership would give you if you traded in your car for a new one. Typically, the trade-in value is less than the Canadian Black Book value.

Speak with an auto title loan company directly to learn more about their appraisal procedures and policies. 

Auto Title Loan: Is it Right for You?

An auto title loan needs to be thought through before signing the dotted line. If you default on the loan the lender does not necessarily immediately seize your vehicle for non-payment as they are in the business of making money on interest, not grabbing a vehicle and selling them. However, bear in mind that because your vehicle is being used collateral the lender could take it to pay off the loan should you completely refuse to make any payments nor return their calls.

We all need our vehicles to complete everyday tasks. We also need them to make money at a job and take care of our children. This is why it's very important to think this decision through and to not make it impulsively. 

However, in life, the unexpected can easily occur. Last minute, we may receive a repair or utility bill we can't pay. In these instances, auto title loans can help. 

If you do feel confident in your ability to repay an auto title loan, then it can relieve your financial stress immensely. It can help you to get back on your feet when the unexpected occurs. Many title loan lenders do not require you to have an income, but rather just equity in your vehicle. This means that you will be able to qualify for a title loan even if you are not currently working. If you are not working the amount that you receive will most probably be less than if you are working, but you will still qualify for a loan of some amount if there is ample equity in the vehicle. 

Interested in getting an auto title loan online?Check out our eLoan processand apply today. 

vehicle title loans

Your Comprehensive Guide to Obtaining Vehicle Title Loans

Your Comprehensive Guide to Obtaining Vehicle Title Loans

Canadian's debt to income ratio is getting worse and increased to 14.9 percent by the end of 2018. In fact, the rate of growth for debt is outpacing income growth. If you are one the many Canadians facing high debt, you may feel overwhelmed by high-interest rates. 

There is an answer to your problem. Get out of your unfavourable financing agreement by paying them off. How do you ask? By using your car. 

Vehicle title loans give people an injection of cash to help them pay off high-interest debt, medical bills, or any other sudden expense. 

What Is an Auto Title Loan? 

A car title loan is a short-term loan that you secure with your car's title. Because you are using your car's title as collateral, other factors tend to be less important. So, if your credit score isn't great or your income isn't high, that won't bar you from getting approval. 

Most lenders will give you 25% to 50% of the value of your car. The one major catch is that you need to own your car outright. That means there are no other loans or claims to the car's title. 

When Should You Get One? 

If you own your car, have bad credit, and need cash quickly, then a title loan may be the right choice for you. Just be sure you can pay the loan off within the lender's proposed time frame.

What Happens If You Fail to Pay the Loan Back? 

You are using your car's title to secure the loan with the lender. That means if you fail to pay, the lender has the right to seize your vehicle if you avoid their calls and do not negotiate a revised payment plan. In the rare cases where the lender is forced to seize a vehicle, they will sell the car and use the proceeds to pay off the loan. Typically, if the vehicle is sold for more than the amount owed, you will receive the difference. 

Another option is to roll your first loan into a new loan. This will give you more time to pay the loan back. It will also mean you have more money to pay back too. 

How Do You Get One? 

When applying for a car title loan with Fast Action Finance, there is no need to come into one of our offices. You can apply for your loan electronically. There is also no need to check your credit scoreeither. 

All you need to do is send us some documents, we'll take ten minutes to review them, and that's it! If you are approved, we will email you the loan documents for you to sign. 

Once we receive the signed documents back, we will email or deposit your loan money. The whole process can be done quite quickly, which is perfect if you are facing an emergency. 

Take Pictures 

The first thing you will need to do is take pictures of your vehicle. We want to see the condition that it is in. You will need a total of eight images to show us your car adequately. 

  • The left side 
  • The right side 
  • The front 
  • The back (be sure the license plate is present in the picture) 
  • The odometer showing total KM
  • The front interior 
  • The back interior 
  • The door VIN 

Check your photos after you've taken them and before you send them. Make sure that you are backed away enough to show the entire vehicle in the picture. 

You also want to make sure that your pictures are well lit and not blurry. When taking a picture of your odometer, make sure it is on the total KMs driven and not a trip mile counter (odometer).

Another picture to be careful with is the VIN picture. There is a lot of information on this sticker, and it's relatively small. So make sure this picture is well lit and not blurry. This can be found on the dashboard on the driver’s side or on the driver’s door post.

Gather Your Documents 

You will need to make a copy of the front and back of your driver's license. We also need proof of ownership, both front, and back. 

Provide proof of insurance on the vehicle. This is to ensure the car, and the loan is protected in the vent of an accident. 

If you are currently employed then provide a copy of your pay stub. Don't worry if you aren't employed; you can skip this step. 

Include a utility bill from your address with the current date on it. The utility bill doesn't need to be in your name; the correct address is what is important. 

You need to provide a void cheque or pre-authorized payment form. This way we can process your loan disbursement as quickly as possible upon approval and document signing. 

Finally, you need to provide two from the following list: 

  • Birth certificate 
  • Passport
  • SIN Card 
  • Health card 
  • Citizenship card 
  • Fire arms acquisition card 
  • Permanent resident card 
  • Any other acceptable government-issued ID 

Once you have gathered all of your documents, email them to us, and we can get started reviewing your application. 

Consider Vehicle Title Loans

If you are facing an emergency, or are looking to pay down some debt, then vehicle title loans may be able to help you. This is a viable option for someone who doesn't have good credit or can't show proof of employment. 

The application process is quick and easy, just make sure you gather all of the necessary documents so that your application is complete and can be reviewed. There is no need for you to come into the office in person, which saves you even more time. 

Use your car today to secure a loan with our quick and easy process. 

car title loan

Is it Difficult to Pay Off a Car Title Loan?

Is it Difficult to Pay Off a Car Title Loan?

A car title loan is one of the best ways to secure instant cash when you need it. A lot of people prefer taking auto title loans because:

  • They are quick to process
  • They are available for people with low credit scores
  • No bank statements are required

However, these loans put an encumbrance on your vehicle, and as a result, some people steer away from them. In the worst case scenario, you may wish to sell your vehicle or trade it in on another one and having a Title Loan on it may impede the process.

Although a Title Loan is a saving grace to may people, it does have a few hitches, which is that you cannot do what you want with the vehicle until the loan is paid off.

Nonetheless, this doesn’t have to be the case.

If you are wondering how to pay off a title car loan with ease; you have come to the right place. We have compiled five ways you can get out of an auto title loan.

If you’re interested in finding out how you can pull this off; keep reading.

1. Selling Your Vehicle

Ideally, this is not the best way to repay car title loans especially if your title is not clean. A clean car title is a title that is not indebted anywhere for instance with your lender.

Nonetheless, it is still a viable option to pay off the auto title loan.

Selling your vehicle could get complicated, but can always get worked out. The Title Loan lender can make arrangements with the purchaser or car dealer, but many this could scare off a potential buyer, if they do not understand the process.

If you still need a vehicle, you may have to downgrade to a less expensive car. Hence, when you sell your vehicle, you can pay off your lender and still have some money left to buy a less expensive vehicle.

2. Refinancing or Consolidating the Loan

In financial terms, loan consolidation involves taking up a different loan with a different lender, to repay your current loan.

Now, this option doesn’t generally solve your debt problem, but it buys you more time to settle a new debt and still keep your vehicle. However, it is essential to note that this option entails you take a much larger loan to cover the original amount borrowed and interest accumulated by the auto title loan.

But, when you refinance a loan, you get an extended repayment period, and you might even get better interest rates.

If you have low credit, consolidation might be a problem for you because you have to borrow from banks, credit unions, etc. However, you can have a trusted friend or family member to co-sign the loan with you.

3. Prioritize Your Monthly Payments

A lot of people assume fast title loans require quick repayment or the loan is in default. Well, this is not true.

The reason you need to repay your auto title loan as soon as possible is to avoid paying more money in interest rates. Typically, every month you carry the loan; the interest keeps accumulating.

When you take the loan, always have a repayment plan in mind. This allows you to determine how long it should take you to repay the loan. With this in mind, it is easy to prioritize how much of your income goes towards repaying the loan.

If you stick to your repayment plan with utmost discipline, then you will pay off the title loan much easier.

Unfortunately, you may not be able to come up with the funds every month. Considering you borrowed the money because you were short, you may have to get creative. A good idea would be to lend out your vehicle to family and friends when you are not using it. This should help towards accumulating the repayment funds.

4. Negotiate With Your Lender

Lenders are business people, and as long as the deal makes sense, they are willing to push the loan for a given amount of time.

Hence, if you realize you might not be able to repay the loan within the agreed upon timeline, you ought to contact the lender beforehand. Inform them you have run into some trouble and you might not be able to meet the repayment deadline. Ask them if they can provide an alternative repayment plan or push the deadline.

A sensible lender will understand your situation and depending on their business’s position; they will avail one or two options of how to proceed. In most cases, they are willing to push the deadline by a week or two.

Understand that not all lenders are the same. To avoid any inconveniences, initiate negotiation as early as possible. This will give you room for further talks in case your finances still don’t work out. Don’t wait until it is a few days to the deadline to start negotiations.

5. Filing for Bankruptcy

Filling for bankruptcy doesn’t necessarily provide relief of the loan, but at the very most, it could buy you some time to settle the car title loan. Nonetheless, your vehicle will still get regarded as collateral.

The viability of this option is not set in stone, and hence, you will need to get in touch with a lawyer and assess your bankruptcy options.

Finally, on Paying Off of Your Car Title Loan With Ease

A car title loan is a viable solution for accessing quick money when you are in a financial fix. However, when taking up the loan, you should consider:

  • Who are provides the best car title loans near me?
  • How much do you need?
  • How fast can you comfortably repay the auto car loan?
  • What is the repayment plan and do I have a plan B?

The easiest way to have peace of mind with a title loan is to borrow the least amount of money possible and maintain your monthly payments.

Are you short on cash with a low credit score and looking for a quick loan? Get in touch with us for the most affordable title loan. We provide a variety of title loans with flexible repayment terms.