Common Myths About Auto Title LendingFast Action Finance SEO
While many people understand how home equity loans really work, many have yet to learn some basic details about auto title loans and their upsides. If you are a resident of Brampton, or other cities across Ontario, and are in search of an auto lending facility, here is your best guide. You can easily get a loan based on the value of your vehicle. You can get money to take care of expenses like home improvements or personal expenses with online title loans. However, some limiting myths about auto title linking have been circulating. Have a look:
Do Auto Title Loans Have Coughing Interest Rates?
Mistaking an auto title loan for a payday loan? Since both options lend quick and easy cash? It is highly likely to believe that auto title loans come with extremely high-interest rates like payday loans. The flipside is auto title lending is popularized because it does not overcharge interest. All the loans are secured by your vehicleâ€™s worth, so you wonâ€™t be trapped in hefty interest rates, even when it comes to the smallest loans. As a borrower, you will get the money you need and pay off as the friendly terms spell out.
Do Title Loans Include Prepayment Penalties?
This relies on lending facilitiesâ€™ terms. Most times a large percentage of lenders do not impose prepayment penalties. In fact, as a buyer, you can add extra funds to each installment or hand over a huge sum all at once. Before committing yourself to a lending facility, take some time to inquire about their rates and terms, so you do not miss the mark and make a wrong decision.
Can You Keep Your Car?
You are thinking you are going to lose your favorite car, right? If you think you will have to lose your car to get a loan, you are misguided. With title loans, you are not handing over the car itself as you get to keep and use it as usual. However, a lien is placed on the vehicle which is what secures it as collateral. The lien will be removed once the loan has been repaid.
Additionally, it is the cash that lenders are seeking, not your car. If you fall behind on payments or are struggling with money then talk to your lender. They will be flexible as they just want your payment.
Is Creditworthiness Considered?
Another misconception is that auto title loans consider the borrowerâ€™s creditworthiness. Other lending facilities may have hyped this myth which is not logical. Contrary to other loans, which hugely consider your credit worth and history, auto title loans do not. With your car as the collateral, you will be granted the loan depending on your carâ€™s equity.
Are Auto Title Loan Companies Unfair?
Auto title loan lenders are not unfair. they are not discriminatory in any way as your credit history and employment status are not considered when applying for this type of loan. The only thing that determines how much can be loaned out is the equity in your car. With more equity comes more money from the loan.
Before you make up your mind and choose a certain lender, conduct thorough research to figure out how they operate. A reputable lender should one of the legitimate companies. In addition to their friendly terms, you will receive dignified treatment even if you are disabled, in debt or unemployed.
Do Auto Title Loan Lenders Choose Potential Defaulters?
The flexible and lenient terms of auto title loan lenders make many people believe that they are fraudulent, and only choose defaulters. Even if they do not consider your employment or credit, the bottom-line is your carâ€™s value. The lenders also verify your car insurance. This is why it is also ideal to read through the lendersâ€™ terms before taking action to avoid inconveniences.