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applying for a car title loan

What to Bring When Applying for a Car Title Loan

Are you ready to apply for a car title loan? You need the right paperwork to get approved the same day. Don't worry. You don't need to run to the courthouse or the bank. Most of what you need is likely sitting in your filing cabinet already. Here's what you need to bring when applying for a car title loan.

Three Types of Documents You Need to Apply for a Car Title Loan

Car title loans don't require any underwriting or credit checks. Instead, you borrow based on the value of the vehicle and your ability to pay it back. To that end, you need to bring documents that fall under three categories:
  • Proof of identity
  • Proof of vehicle ownership
  • Proof of residence
As proof of identity, you need to bring your driver's license as well as two pieces of further identification, including:
  • SIN card
  • Passport
  • Permanent resident card
  • Birth certificate
  • Health card
  • Firearms acquisition card
  • Other government-issued ID
Your names should match on all IDs, and they should all be current. Proof of ID is essential because you can only borrow against a car you own. The lender needs to ensure that you are the full owner of the vehicle. As proof of vehicle ownership, you need to bring both your vehicle and your original ownership papers and proof of insurance. These papers guarantee that the car is in your name. If the car has a second current owner, then that person also needs to sign-off on the loan. You should also bring in further documentation demonstrating proof of address. A recent utility bill works. Be sure that it shows the address and a current date. Additionally, you need to bring your pay stub, if you get one. One or two current paystubs works just fine. Although you don't need good credit or a full-time job, the lender wants to be confident that you are comfortable paying back the balance of the loan over the loan period. If you are self employed and do not get regular paystubs, this is not a problem. In this case be prepared to show what you do for income.

What Other Items Might I Need?

You may also need to bring a spare key if you have one for the vehicle and a void cheque. If you don't have cheques anymore, then you will fill out a pre-authorized payment form. Pre-authorized payment forms are very easy to obtain. You can get them from any branch of your bank and in most cases get them online if you use online banking. Do you want to apply online? Instead of bringing the vehicle in physically, you can send eight high-quality pictures of the car, including:
  • Left and right side
  • Front and back (including license plate)
  • Odometer (not trip meter)
  • Front and back interior
  • Door VIN
These pictures can be taken with any smartphone and emailed. In addition, the other documentation needed and described above can also be sent in by taking clear pictures with your smartphone. Finally, if the vehicle isn't in your name only (meaning there is another name on the registration other than yours), then you need to provide written permission from the other owner. If they don't give you permission, then they need to sign on as a co-signer on the loan. To get permission from the other person, the lender will provide you guidance.

What if It's a Company Vehicle?

You can borrow on a company car, but only if you own the company. You cannot borrow on a company car provided to you by another employer. If you intend to use your company's vehicle as collateral, you need to provide extra documentation proving that you own the company. You will need to show your articles of incorporation. In this case, your name must be listed as a director on the articles of incorporation.

Do I Need a Credit Check?

Your credit doesn't matter. Although you provide your ID, you can still borrow whether your credit is ruined or a work in progress. You can even get a title loan if you are in an undischarged bankruptcy or a Consumers Proposal as long as your vehicle qualifies for the loan. If you apply during bankruptcy or Consumers Proposal, you may need to provide additional documents to prove that your vehicle qualifies.

What If I Have a Lien on the Vehicle?

If you have a lien on the title, then you typically do not qualify for a car title loan. In some cases the lender can pay off the current loan on the vehicle and provide you with extra funds. The lender can see if there is a lien in place when you submit your documents. In some cases, you can apply for another product like a repair loan. However, you need to discuss your case with the lender directly.

How Much Can I Borrow?

You can borrow up to 50 percent of your Black Book value. The maximum loan amount tends to sit at $25,000. The lender offers you the maximum amount you can borrow, but you are under no obligation to take the full amount. If you are borrowing to pay a bill, you may find it simpler to borrow only as much as you need the first time around. If you need to borrow for a repair on your vehicle, you can do this in a separate product. Additionally, you don't need to own the car to apply for it; leased and financed cars also qualify for repair loans. Also, if you own a movable piece of equipment that can be left with the lender you can borrow this way.

How Quickly Can I Receive My Loan?

As long as you bring all the necessary documents with you, you can receive the funds on the same day you apply. If you apply online, you will get a response during business hours. You will either hear from the lender by email or by phone, so double-check that all your details are correct before submitting your application.

Questions About Applying for a Car Title Loan?

Applying for a car title loan is easy. Unlike applying for traditional financing, you don't need to provide stacks of bank statements or paystubs. All you need is proof of ID, proof of ownership, and proof of residence. If you are facing exceptional circumstances and can't provide one of these documents, don't panic. You can talk to the lender in person to learn more about your next steps. Are you ready to apply for a car title loan? Click here to learn more about how to get such a loan from Fast Action Finance on the same day you apply.
ways to borrow money

Ways to Borrow Money in Canada (Even if You Have Poor Credit)

When it comes to money, everyone could use a little help sometimes. After all, there are moments when funds run low, and there's just not enough cash on hand to make ends meet. During times like this, some people look for options that can provide the money needed to make it through until payday. Fortunately, there are a variety of ways to borrow money. This article takes a look at how to get quick cash in Canada when you need it most. Keep reading to see your best options.

Borrowing from Family or Friends

When it comes to borrowing money fast, the quickest and least complicated method is simply getting a short-term loan from a loved one. After all, there's no paperwork involved, they won't be running a credit check, and you won't have to worry about your application being processed by a maze of corporate administrators. Keep in mind that borrowing from family or friends can be awkward. Money can create tension in even the best of relationships. It's typically not fun being indebted to those who know you best. But if you're needing some help and they have the resources to float you a loan, this might be the ideal situation.

Credit Cards

Credit cards serve a useful purpose. They provide purchasing power without having to haul around bags of cash. You can buy almost anything and simply run your little piece of plastic through the card reader. And yet this convenience comes at a price. You'll be charged interest if you don't make your minimum monthly payment on time or pay off your balance before the end of the billing period. Many people resist using credit for purchases except as an energy resource; this is probably wise. But credit cards can also serve as a useful resource when your bank account is strained. Thus, if you're just needing a way to put gas in the car and food on the table until payday swings around, your credit cards can make life much easier.

Cash Advance on Credit Cards

Aside from traditional purchasing power, credit cards also provide another convenience. Many allow you to take out all or some of your available credit as a cash advance. Taking out a cash advance on your credit cards is quick and easy. This is typically a simple matter of withdrawing funds at an ATM. This is helpful because you can make withdrawals at any hour of the day. Just be sure to keep in mind that taking a cash advance on your credit card will typically include a fee and interest charges. But when you need cash fast, your credit cards can bail you out of a tight spot.

Unsecured Loan

Another popular option for borrowing money is to apply for an unsecured loan. This type of loan means that you're borrowing money without offering collateral. While traditional loans require some form of collateral such as a home, car, or other assets the lender can use to guarantee repayment on the loan, unsecured loans do not involve collateral. Instead, a variety of other stipulations are typically involved in the agreement. So if you don't have any form of collateral to offer as a guarantee, this could be a good solution when you need a load as soon as possible.

A Line of Credit

Many banks and credit cards offer customers a line of credit. A revolving line of credit means that you're able to borrow against a set credit limit, and continue to borrow as needed as long as you make payments and stay within the limit. This can be extremely useful to anyone needing cash advances on a regular basis. The key is to pay back the amount borrowed as quickly as possible to avoid finance and interest charges, because these fees and interest charges will be applied to any outstanding amount at the end of each billing cycle. The beauty of a revolving line of credit is that it's always available when you need it.

Mortgage Your Home

Taking out a mortgage on your home is a bit more complicated than other options on this list, and includes the biggest risk to the borrower. When you mortgage your home, you're taking out a loan and using your home as collateral. This provides you with the opportunity to borrow the largest amount of cash, but you also risk losing your home if you don't make your repayment on time. Think long and hard about your need for money before mortgaging your home, especially if it's already paid off. After all, there are plenty of other options available for getting short-term loans without involving your home.

Home Equity Loan

Home equity loans are slightly different from mortgages. This type of loan allows you to borrow against the equity you've built up in your home. Thus, you can borrow up to the amount you've already paid down.

A Car Title Loan

Perhaps the easiest way to get a loan is using your car title as collateral. Car title loans are fast, provide the cash you need, and are far less complicated to process than a home mortgage, unsecured loan, or home equity loan. In fact, most title loans can be applied for online and are often approved within minutes.

Payday Loans

Another super-easy way to borrow money fast is with a payday loan. This method of borrowing money allows you to borrow against your upcoming paycheck. This is very popular with people who typically just need quick cash to cover their obligations for a week or so.

Common Ways to Borrow Money in Canada

Everyone needs money, especially when life throws you a curveball and you need to find ways to borrow money fast. This article shows you how easy it can be to find the funds you need, regardless of your situation. Click here to find out everything you need to know to get approved for a car title loan.
car title loans

Is It Worth It?: The Top Benefits of Car Title Loans

Is It Worth It?: The Top Benefits of Car Title Loans

 

Do you struggle to get a traditional personal loan from a bank? Maybe you made some mistakes with your credit. Perhaps, like an increasing number of people in Ontario, you work in the gig economy and don’t earn a regular wage.

The conventional banking system isn’t a one-size-fits-all option that covers people in all circumstances. That’s why other types of credit continue to pop up: to serve those who the banks leave behind.

Auto title loans are one of those lending opportunities. With a car title loan, you borrow against the value of your car. Is an auto title loan worth it? Keep reading to find out if it could help you get cash fast.

What Are the Benefits of an Auto Title Loan?

Auto title loans(or car title loans) offer a chance to get cash quickly. Unlike other forms of credit, they don’t require long applications or underwriting. An application takes ten minutes, and lenders provide the cash on the same day (or next day).

A second benefit of the auto title loan is that it allows you to work with what you have today rather than what you aspire to have later. Building credit is a long process, but owning a car is much easier. Whether you own a car, truck, SUV, or even a motorcycle, you can borrow by using your vehicle’s title. The title (along with proof of income) is all you need. No aspirational credit scores are required.

There’s no credit check involved at all. You can borrow against the following vehicles as long as you own them free and clear:

  • Cars
  • Trucks
  • SUVs
  • Snowmobiles
  • RVs
  • Motorcycles

Car title loans are also more forgiving than a cash advance. Because the loan provider has a car as collateral, there’s less risk, which means interest rates and fees are often lower. The repayment options are also made apparent upfront, so you always know what you need to pay and when.

An auto title loan might sound too good to be true, but it gets better. While you do have to pledge your vehicle as collateral until you pay the loan back, you keep your car for the loan period. You can go where you want when you want.

Ultimately, what makes a car title loan worth is stress relief. You can get cash quickly without worrying about the fees and interest rates that trap people in debt with payday loans. Borrow what you need, pay it back (plus interest), and call it done - all without damage to your credit.

Make It Worth It: Enter an Auto Title Loan with Your Eyes Open

There are real benefits to an auto title loan compared to payday loans, cash advances, and even traditional lending.

However, as with any form of borrowing, auto title loans work best when you are aware of the terms and expectations.

Most auto title loans are for small amounts of money, which you borrow over one year, (maybe for longer or shorter periods too). In the end the total cost to you for an auto title loan is much less than what you would experience under other types of loan arrangements.

To make the most of the loan, it is important to only borrow as much as you can afford to payback within the term of the loan. That means avoiding borrowing excessive amounts.

When you borrow too much, you increase the likelihood that you might need an extension. Extending auto title loans is always possible, but why not avoid doing this? As your debt grows, you become less likely to be able to pay it back. It can spiral out of control and cause unnecessary worries.

How to Make Sure You’re Ready for a Car Title Loan

Is a car title loan right for you? The answer to that question lies not only in your finances but also in your ability to hunt down the right loan.

Before you sign the dotted line, you always need to talk to the title loan lender to feel them out and assure yourself that they are the right people to deal with, that they will understand your position should you run into problems, and be willing to help you out more further down the road.

You should know every detail before you jump into it headfirst.

Additionally, work with lenders who work within the traditional title loan parameters: short-term loans with reasonable repayment terms.

Don’t fall for the low monthly payment promise; you may pay a low sum every month, but in the end, you pay back exponentially more than you borrow. Typically you should be able to borrow about50 percentof your vehicle's Black Book value.

Finally, consider adding a co-signer to your loan. Your co-signer improves your likelihood of approval if your assets are minimal, and they are also one more layer between you and the lender in case something goes wrong. Make sure your co-signer knows the terms exactly and understands that they must also own a vehicle that meets lending criteria.

How Will a Title Loan Help You?

A car title loan can help you out of a tough spot without the interest rates of a payday lender or the strict requirements of a conventional bank. When you use a car title loan, it is important to understand that you get out of it what you put into it. Borrowing sensibly and learning the payment terms before you apply can prevent your debt from becoming unmanageable.

Do you need some extra cash but don't qualify for credit elsewhere? We can help. Click hereto learn about our eLoan process and learn how you can get up to $25,000 on the value of your car today. With the eLoan, there is no need to drive to the lender’s physical office, but rather can apply for the loan and receive it from an offsite location.

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.