How Do Title Loans Work? Everything You Need to Know About Car Title LoansFast Action Finance
Are you in need of money fast?
Emergencies happen and bills to need to be paid. Your typical Canadian creditor doesnâ€™t care if your money is short this month.
When money is short, then you can try getting a title loan to pay for things until you get back on your feet.Â You make ask yourself, how doÂ title loans work? If youâ€™re the average person, then you probably don’t know. If you need cash fast, then itâ€™s a viable option for you.
Weâ€™ll discuss title loans and when theyâ€™re the best option for you. Youâ€™ll get the money you need, and you can pay the bills that the average Ontario resident is burdened with.
How Do Title Loans Work?
A title loan works by providing you cash in exchange for allowing the lender to put a lien on your car or truck.
For most title loans, you must already own your car and have possession of the car title.
You visit the title loan company’s office andÂ bring your car registration. They go over all the necessary information such as identity verification, residency documentation, etc., and you allow them to place a lien on your vehicle. There is also the option of getting a title loan by doing all of the paperwork online.
In exchange, they give you the money you requested, and you pay it off with the agreed upon time frame. This is the simplest method of explaining how a title loan works, but weâ€™ll break it down into more digestible bits.
Title Loans Are Short-Term Loans
While it may have taken you several years to originally pay off your car, a title loan does not go longer than a typical car loan.
Itâ€™s not the same thing as a car loan. Itâ€™s designed to provide you with enough to take care of your emergency needs but also paid it back at a quicker rate.
While car loans are paid back sometimes over five years, title loans are paid back within two years at the most and many times within a few months. This means that the monthly payments can be a little higher than regular car loans because you are paying the principal back faster.
If you canâ€™t pay it back within the agreed-upon time, then you can usually roll it over and adjust the payments to suit your needs and ability. Itâ€™s important that when you take out the title loan that you speak frankly to the title loan lender so that it is structured to best suit you.
Some provinces may limit the number of times you can roll over a loan or if the practice is possible.
How Much Money Can I Get for My Car Title?
How much money you can get for yourÂ car titleÂ depends on how much itâ€™s worth.
If you bring in an older model car thatâ€™s not in the greatest shape, then you wonâ€™t be able to get a large amount, if any at all.
Also, youâ€™re not going to get the full value of the car. Generally, the best youâ€™ll get is about 50-percent of the total worth. The loans arenâ€™t supposed to be for large amounts of money because you need to pay it back quickly.
The practice of providing only a fraction of total worth makes sure you donâ€™t get over your head. The loan companyâ€™s main desire is to provide you with emergency money when you need it and for you to pay it back.
The amount of money you get from a title loan company is usually between $1,000 to $7,500, depending on the total value of your car.
Benefits of Car Title Loans
Car title loans are for you to get the money you need when you need it.
If you go for a more traditional bank loan, thereâ€™s all sort of red tape to go through. Youâ€™ll have to go through a credit check, and it can take days for you to find out if you qualify.
You could end up wasting three days waiting for a loan that you donâ€™t qualify for. For someone that needs the money to keep the electricity from being shut off, waiting three days isnâ€™t an option.
A title loan lets you get the money that day and in cash. Youâ€™ll have it in your hand and ready to use.
The short-term nature also makes it perfect for immediate needs. You donâ€™t want to get a loan from a bank that youâ€™ll end up paying for many years. With a title loan, you can pay it back within a month if you wish and get the lien removed from your vehicle.
You also know what youâ€™re getting from the start. If you try for some of thoseÂ online payday loans, you donâ€™t really know who youâ€™re dealing with. They’re sending you money from who knows where and you canâ€™t guarantee theyâ€™re on the up and up.
You could pay off the online loan and then they try taking more money. With a title loan, you speak with a person face-to-face in Ontario. If you have any questions, you know how to contact them.
Many online loans donâ€™t have easily available contact information. You could end up losing far more than the amount you borrowed with online loans. A title loan is a way to go.
People Do It All the Time
Many title loan stores have been around for years in the same place or associated with companies that have been doing it for years.
Thousands of people take out Canadian title loans every year for their emergency needs.
Itâ€™s a common method for getting the money you need when you need it. Title loans are quick, easy and transparent with their practices. Many title loan providers have repeat customers who come to them whenever they need funds for an emergency.
Title Loans Are A Great Funding Source
How do title loans work?
We hope this explained it in a way that was easy to understand. All thatâ€™s left if for you to visit a title loan provider and get the money you need.
If you want to learn more about title loans, then pleaseÂ explore our site.