Do You Really Need A Title Deed To Get An Auto Title Loan?Fast Action Finance
Conventionally, a car title is the major ingredient that gets things going when you need an auto title loan. A title loan is a useful solution for short-term financing. It allows you to handle urgent matters and return the money later. In that case, there are a few requirements that make you eligible for the loan. You only need a car and car title.
The car title is a physical proof that you own a car. For personal loans and signatures loan, a little paper work is required. This may involve credit checks. The credit does not necessarily have to be perfect. This again depends on the type of lender. To know whether you can qualify for a car title loan using a title deed, here is a breakdown to enlighten you.
Do things work without a clear title?
The question about getting a vehicle title loan without a clearly defined car title is popular across many regions. For a fact, firms offer auto title loans to customers when they need them. However, they barely grant loans if a person fails to present a clear title. Essentially, the implication is that you cannot get a loan with an unclear title. You need a lien-free title for starters. The title is a proof of outright ownership of the vehicle that you intend to use as collateral when obtaining a title loan.
Car with several owners
It is also possible to have cases where an applicant co-owns a vehicle with another person. This could also be a list of several people. In that case, if you present a car title that indicates a list of names regarding car ownership, you may not stand a higher chance of getting the auto title loan. However, some firms will look further into the matter to obtain details of all the owners listed in the title. In a case where you co-own a car with one person, it may not be very complicated. You may only need the approval of the person you share the car with to get the title loan.
No title info
It is important to present a car title that clearly indicates paperwork to the satisfactory level as per the stipulated policies of a financial institution. In many cases, offering a car title with little or unclear information may not guarantee you a loan. In essence, you need title paperwork. Although it relates a lot owning a clear title, having a car title with title paper work goes a long to show legal proof that you are the car owner. A lender can verify that you are the legal owner of a lien-free car. In the event you have a lien-free car and happen to have misplaced the title paperwork, it is advisable to get a replacement from the local department for motor vehicles.
Issues with title replacement
In some situations, it may impossible to replace title loan. If this totally fails in the local department for motor vehicles, then it is advisable to consider other types of loans such as personal loan or signature loan. For these types of loans, vehicle details are not really necessary. However, if you really need a significant amount of loan, you may have to search every nook and cranny of your home to get the title paperwork.
What about a title deed?
As mentioned previously, the major requirement that makes things work when applying for car title loans in Toronto is a cleared car title. That means that even if you show up at a financial institution with a title deed, there will not be much of a difference. Your title deed is as good as the car title with a lien.
The title deed may work in other cases that may require property as collateral for getting a loan. As far as a car title loan is concerned, it will not do much. However, there is a similarity between a car title and title deed. Both of them can be used as collateral when acquiring a loan. The only difference is that you cannot use a title deed as collateral to get an auto title loan.
If you intend to get an auto title loan using a title deed, things are not going to work. Many lenders only use a car title to approve of the loan. The car title shows that you are the legal owner of a vehicle. It is used as collateral that gives the lender the power to repossess your car in the event you default. To get you car title back, all you have to do is ensure that you make payments on time according to the signed agreement. If you lack clear ideas on how to strategize on a repayment plan, you can always make use of a financial adviser.