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Is it Easy to Get a Title Loan Online or Electronically?

With the new electronic age everyone wants to do their standard day to day transactions over the internet. We have seen this for banking, home sales, auto sales, vacation booking, the list goes on and on. Doing what used to be time consuming transactions, have now become very easy to do while sitting in the comfort of your home or office. But wait, now the consumer does not have to even be sitting at a computer at home or in the office, because with the proliferation of smart phones they can conduct their electronic business from basically anywhere. It is now fashionable for consumers to get loans online. It is very simple, just find the desired loan company, fill in the application and wait for the response.

These loan companies will want to see certain documentation to prove your identity and legal ownership of any collateral that is being pledged to secure the loan, such as a vehicle for a Title Loan. But then again, using either a smart phone to take pictures of the documents or scanning them in a scanner, these required documents can then be emailed to the prospective lender. If you do not have a scanner then crisp clear pictures can be taken of the required documents with a smart phone and emailed. For those who do not feel that they have a sturdy enough hand to take a clear picture, there are apps that can be downloaded on your smart phone, such as Turboscan, that can assist you in getting a completely legible image of the necessary loan documents to the lender.

When the lender receives all the documents needed to complete the loan, they prepare the loan documentation to send to you for signature. It is at this point that you will sign the documents and send back to the lender. A problem may arise if you have no way of printing the loan documents to sign. Progress is currently being made regarding electronic signatures that are acceptable to the lender and are legally binding. At the time of this writing, most lenders need an actual signature on the loan documents. But there is always a way around this problem. In this case, if the borrower has no means of printing the documents to sign and then send back to the lender, they can always have the loan company fax the documentation to a service company such as Staples, Mail Boxes, Etc., UPS Store, etc. where for a small per page fee the company will print the fax for the customer. The customer will then sign the documentation and have the service company fax it back to the lender, again for a small per page fee.

Once the lender has received the signed loan documents back they will typically email the money to the borrower. If the borrower cannot accept email transfers then the money in many cases can be deposited directly into their account. A difficulty is sometimes encountered depositing the funds into a customer’s account when they have an account with an obscure bank or trust company with few branches. This may preclude the lender from depositing the funds into the borrowers’ account because there are no branches of the customer’s financial institution economically close for the deposit to be made. However, as the majority of Canadians have accounts at the major banks, this seldomly becomes a problem.

The process that I have just described for doing online loans is carried out smoothly, securely and efficiently by Fast Action Finance. Fast Action gives Title Loans online and is one of the leading leaders in not only lending against paid off vehicles, but also doing it online loans through what they call eLOANS.

Fast Action Finance not only lends against paid off vehicles nine years old or newer, but also against movable equipment that it can hold (Collateral Loan), motorcycles, snow machines, and watercraft that it can hold (Motorcycle Storage Loans) and loans for repairs on vehicles even if they are financed or leased (Repair Loans).

Use Public Transit or Drive Your Own Car, Win With Title Loans

With today’s move towards saving the planet and using less non-renewable energy sources, such a s fossil fuels, the debate continues on whether to take public transit or drive your own car. Taking Toronto as an example, if you live near a Toronto Transit Commission (TTC) station and your work is also near a TTC station, then it is an easy decision to not take your car to work. If you and your work are not close to a TTC station, you can still take a bus or street car by themselves or in a combination with the subway. Also, if you need to take a bus that causes you to wait for the next bus, you can always consider using Uber or Lyft when the next bus’s arrival time will make you late. I would not suggest using this ride share service too often, but now and again to avoid being late can still work.

The city of Toronto is attempting to make it easier for transit users get around and are currently in the process of building new subway lines and stations. There are other ways that people can avoid the brutal during peak periods.

There are several apps available that help commuters see where the traffic is and decide on the best route. The tools show drivers where the traffic holds up are, but if everyone is looking at the same or similar app they will take these suggested routes and these too will become congested.

Another solution is to car pool. However, if you are the only one who does this then you and your shared riders will be stuck in traffic together. The upside is that you will have somebody to keep you company. The QEW has a designated lane for higher occupancy vehicles on some parts and hopefully other major routes will have the same thing soon as well.

Have you ever considered working at home? Many people are asking to be allowed to work from home and some businesses are even insisting that their employees work from home to save on office costs. Working from home, even some of the time, saves many hours of commuting time and takes your vehicle off the road. This not only solves the commuting problem for you, but also helps the others who are stuck in the daily commute.

Shift work, with your work time starting and ending off peak hours is another way to avoid the deadly commute. Stagger your start and finish times to periods that the roads are quieter. Even moving your start and finish times in an earlier or later direction by a few hours will give you unhindered use of the otherwise congested roads and highways.

Moving out of the city to get another job and having a pleasant leisurely commute is another option. Scour the employment job postings and find a similar of better job in a less hectic community. This will give you the opportunity to choose your new living place around where you know you will be working. There are many small regional cities in Canada that are very desirable to live, work and raise a family.

But, if you must own a vehicle and commute to work, then there is one upside to all of this. You can use your lien free vehicle as collateral to get a loan from Fast Action Finance. These are called Title Loans. You keep and drive the vehicle as normal, but it will be working for you, not only taking you to and from where you want to go, but also working for you by letting you borrow the money you need today. When we say we will lend to you using your vehicle, we include cars, trucks, vans, pick up trucks, etc. In addition to lending against vehicles, Fast Action also lends money if you leave your paid in full motorcycle, snowmobile or watercraft in our safe and secure warehouse. If you have compact movable machinery that we can store, we lend against that too. These types of loans are called Motorcycle Storage Loans and Collateral Loans.

The Loan Industry in Canada

The loan industry in Canada is made up of several different segments:

National and International Lending Institutions

The banks are national and international lending institutions. In addition, there are smaller lending institutions such as credit unions and savings & loans entities that are provincial or regional. They are all heavily regulated by the Banking Act and/or other legislation that makes them very non-entrepreneurial in their business dealings.

These banks, credit unions and savings & loans institutions are run by a board of directors. They follow strict lending criteria and there is little room for flexibility in their lending practices. These institutions still grant many loans, but only to those with good credit records. Their threshold of loan minimums is constantly rising, whereby a consumer looking for a small loan of $5,000 is directed to use their credit card. Banks no longer have the will to administer small loans.

Local Lending Companies

Then there are the local lending companies that are sometimes a stand alone operation, have a few locations or are part of a franchised system. Depending on the level of ownership, this class of loan company ranges from entrepreneurial to very restrictive in lending policies.

Payday Loan Companies

Finally there are the payday loan companies that operate under the Payday Loans Act. The typical payday loan customer is looking for a lending institute’s ability in granting them fast access to loans and finance. The payday lenders too have strict rules to follow and they have little room to wander from their self-imposed business model.

The Best Choice For Many Customers

The lending companies that take an entrepreneurial attitude to assist customers with their needs are the local lenders. In these companies the owner is usually active in the day to day operations of the business and many times can be swayed by a borrower’s needs and will work with them to find a solution and get them the money they need.

Fast Action Finance is The Local Lender For You

Fast Action Finance is a local lender that will lend up to $5,000 using a paid off 2009 or newer vehicle. This is called a Title Loan. For these Title Loans we do not hold the car, have it transferred to our name or have the customer sign the ownership over to us. The customer keeps driving the car as usual. For higher loan amounts we hold collateral such as vehicles, trucks, motorcycles, classic cars, snowmobiles, watercraft, machinery, etc. at our secure location to collateralize the loan. These are known by several names: Collateral Loans, Secured Loans, Hard Collateral Loans, Storage Loans, or Emergency Loans.

How To Use Your Motorcycle To Secure A Loan

For some people, there comes a time when they find themselves in a tight financial situation but are unable to borrow from traditional lenders, such as the bank. This may be for a variety of reasons such as a poor credit rating or unemployment.

Many individuals would then turn to secured loans, such as title loans, where credit and employment status is not considered. However, not everyone has a debt-free vehicle. One needs to have a debt-free vehicle with full-coverage insurance in order to qualify for a title loan.

Another reason why title loans may not be a viable option is because of the value of the vehicle. There simply may not be enough value in the vehicle in order to receive a substantial amount of funds from the loan. How does one go about receiving well-needed funds with these factors at play?

Motorcycle Storage Loan

A lesser known way of securing a loan is with a motorcycle storage loan. This type of loan involves the lender holding onto the motorcycle for the duration of the loan. The lender will have a secure facility that the collateral will be held in, that is locked and alarmed at all times. In addition to this, many lenders will also allow an individual to check-up on their motorcycle for peace of mind and to ensure that it is safe. Once the loan has been paid-off, one can pick up their motorcycle at any time they please.

One of the positive aspects of motorcycle storage loans is that many individuals do not use their motorcycle year-round anyways. That means that it can be used to secure a loan during the cold winter months, then the loan can be paid-off as the weather warms up and you will be free to use your motorcycle as you wish.

How Much Money Will I Receive?

The amount of funds received from the loan depends on how much equity is in the motorcycle. The higher the equity, the more funds one will be eligible to receive as a result of the motorcycle storage loan. For example, a motorcycle worth $6,000 will be eligible to receive more funds than a motorcycle worth$4,000.

Since the motorcycle will be held onto for the duration of the loan, almost the full value of the motorcycle can be loaned out. This is because there is less risk if the motorcycle is in the lender’s possession as opposed to on the road.

Other Options

If you find yourself still needing more funds after considering both motorcycle storage loans and title loans, then you may have other collateral that can be utilized to receive additional funds. Collateral such as watercraft, snowmobiles, machinery, and equipment can be pledged as collateral for a loan. However, this collateral will need to be stored by the lender for the duration of the loan.

Snowmobiles can be a perfect asset to pledge as collateral for a loan. This is because they can only be used for a few months each year. One can take out a secured loan with their snowmobile as collateral in April, and pay the loan off by November. This way, you still have from November until March to enjoy your snowmobile.

Additionally, some professions find themselves needing certain equipment during certain seasons, but have no use for them in other seasons. Examples of this include snowblowers and tractors. Why have equipment sitting idle when you can use it as collateral to receive funds? These funds can then be reinvested in order to make additional revenue in the future.

You Always Have Options

All in all, motorcycle storage loans can be a viable option for those who are lacking other forms of collateral to obtain a loan, but do not meet the strict requirements of the bank. However, motorcycle storage loans are also useful to receive additional funds on top of another loan, such as a title loan or a unsecured loan.

If you do not have a motorcyle then take a hard look at the assets that you do own. Are any of them of a substantial value? Can you go without them for a few months, until the loan is paid-off? If the answer is yes, then you may want to think about pledging these assets as a security for a loan.

How To Look For A Decent Car Title Loan Lender

Car title loans come in handy when one is in a time crunch and an ideal way to manage unexpected costs. However, just like taking any other loan, there are things one has to consider when deciding which car title loan company to borrow from.  Not all car title loan lenders operate the same but there are some key points that you need to look for when comparing auto title loan companies.

The main aim of applying for a car title loan is to take care of emergency expenses; not add to them. When looking for a decent car title loan lender, you should consider the following:

Professional experience

Always look for a car title loan lender who has experience and understands the industry. Choose a professional lender who will assist you to apply and manage your loan with ease. You want to deal with a lender who is willing to negotiate your terms of repayment and one that is willing to work with you to overcome anything that might cause you to miss a payment. Fast Action Finance has been Ontario’s leading title loan lender for over 21 years!

Flexibility

Everyone has a plan in life but as we all know, things don’t always work out as we plan at times. You need to work with a lender who understands that circumstances change and you may be faced with unexpected expenses that would not allow you to make your repayment on time. A flexible and understanding company will acknowledge this reality and will agree to work with you in regards to late fees.

Interest rates

Title loans typically have a shorter loan term than traditional loans. When looking for a car title loan company, it is best to compare the interest rates each lender is offering and the nature of their payment schedule. Ask each lender to explain clearly their loan terms so that there is no confusion as to how much and when you are supposed to pay back your loan. Pick a lender that offers a payment schedule that best suits you. Many lenders vary on how often they take payments, which could be bi-weekly, or even monthly. They also vary on how long they offer the loan for, which is typically one year to one year and a half. However, early repayment may be accepted.

Fees

When applying for a car title loan, it is not unusual that you will be asked to pay some fees before signing the agreement. You should ask your lender to review these fees so you know the full amount you are paying back. Some fees to ask about are late payment fees. This is the fee that may be charged to your account if you fail to make a payment. However, many lenders are willing to work with you and may not charge this fee if they are given warning of the late payment.

Another fee to watch out for is an early repayment fee. It is advisable to seek out a lender that does not charge a fee for early repayment. This means that if you come into a lump sum of money and are able to pay off the loan, then you will be able to do so without any penalty. In fact, many lenders offer discounts for early repayment.

Testimonials

The best way to tell if a lender has a good reputation or not is by finding out what other borrowers who have worked with them have to say about the company. You can find honest reviews about different loan companies online on sites like Yelp or Google reviews. A reputable lender will not have a problem with listing their customer’s testimonials on their website. You can also ask family or friends who have applied for car title loans before to recommend the best title loan lender they know.

So, if you have a financial emergency and you are looking to borrow some money, the best option would be to apply for a car title loan. Get a lender who will be willing to negotiate on repayment terms to allow you to repay your loan with ease and on time.

Fast Action Finance is one of Ontario’s leading lenders and they are flexibkle when it comes to the terms of the loan and repayment. Give them a call today to set up your auto title loan (416)239-2906.

Understanding Auto Title Loan Terms

Most people find themselves in a position where they need cash urgently to sort immediate needs and they don’t have the amount needed. One way to acquire quick funds is to borrow with your car. This type of loan is known as an auto title loan or a car title loan. Your credit can be good or bad, or you can be unemployed or self-employed, and still be eligible for a car title loan. This is because your car is used as security for the loan. Although it is used to secure the loan, you can still continue to use your car as usual.

All you need to apply for an auto title loan is an ID, insurance and a lien-free car. Once you get the loan from the lender, you still continue to use your car as you repay your loan. How much you can borrow depends on the overall value of your car. If you are a first time borrower, there are some auto title loan terms that you need to familiarize yourself with before you start comparing different offers from different lending companies. Common loan terms you will encounter include:

Loan term

This term refers to the time you are supposed to pay back the loan. Unlike traditional loans, car title loans have a shorter loan term. This is why it is very important to apply for a car title loan only when you need cash for emergency expenses. There are lenders who are flexible and willing to negotiate the loan term with their customers in order to allow them to pay back the loan without too much pressure. Some individuals opt for a shorter loan term in order to pay back the loan as quick as possible and get it off their back. However, some individuals opt for a longer loan term in order to keep the payments smaller.

Add-ons

Some lending companies require their customers to take add-ons in order for them to qualify for a loan. Add-ons may include you to have breakdown insurance on top of the normal car insurance. Why is this? As mentioned earlier, the value of your car determines the loan you can apply for. In case of an accident, whether major or minor, the value of the car definitely goes down. If you have a breakdown insurance cover, even if you get into an accident, the lender is assured that they will recover their whole amount in the event you are unable to pay your loan. Different lenders require different add-ons. So, it is important to find out about what add-ons may be required by the lender of your choice. At Fast Action Finance, no add-ons are needed. The only insurance required is full-coverage car insurance.

Interest-only payments

interest rates

Sometimes circumstances change and one is faced with emergency expenses. This is something that can affect anyone at any time. In the event you are unable to make your monthly loan repayments, you can talk to a lender to negotiate your terms of repayment. Lenders do give borrowers the option to make interest-only payments. This option allows borrowers to pay only the interest on their loans until they come up with the cash to repay the loan. The only downside to this agreement is that one ends up paying a bit more interest on their loans than they initially expected.

Liens

Just like any other type of loan, a borrower has to sign an agreement with the lender when applying for a car title loan. Once all the necessary documents are signed and dated, the lender will place a lien on your vehicle. The lien is registered with the Ministry of Transportation and lets other lenders know that there is money owing against your car. The lien also secures the car as collateral for the loan. Once the loan is has been paid off, the lien will be removed immediately.

 

Looking For More Affordable Car Title Loans?

Most people who apply for car title loans do so because they require urgent money to take care of emergency expenses. So, they end up rushing to get a car title loan without finding the deal that is best suited for them. For borrowers to apply for more affordable vehicle title loans in Toronto, they should to do the following:

Compare lending companies

As a borrower, never sign up with the first lending company you come across. If you live in Toronto for example, there are several lending companies that are willing to give out auto title loans. Take time to approach as many lending companies in your area as you can and compare their repayment schedule. Some lenders offer longer loan terms while others offer shorter terms. Additionally, lenders may vary in how often they take payments, will they be bi-weekly or monthly? If the repayment term is for a short period, then the payments will be higher than a longer term but the interest will be lower. Take time to go over all the offers and choose a lender that offers the terms that best suits you.

Review the loan term

As mentioned earlier, most people apply for car title loans in order to cater to their emergency expenses. If this is your case, you should focus on applying for a loan that includes options to have the payment term stretched over a longer period of time and also the ability to repay the loan early, even if the term was for a longer time. The idea of making the term longer is to lower the monthly payments, but this should not lock you into the longer term. Be sure there is the ability to get out before the term ends in case you suddenly have access to funds to buy out the loan. However, as a borrower, you should take time to review the loan terms your lender offers by carefully going over the fine print.

If you find verbiage in the loan document that you don’t understand, ask for it to be explained. There will typically be an easy explanation of these items that are unfamiliar to you. Determine beforehand the amount you can borrow, length of your loan and repayment options before you agree to sign.

Rolling over loan balance is always available

When a borrower cannot pay off the loan within the period agreed, or needs more money, the lender can offer to roll over the loan into a new loan. This is a good option as it allows you to get your payments back on track and in control. It also allows you to put more money in your pocket. When a loan is rolled over, be sure that the lender calculated that the amount being rolled over is discounted as if the loan has been paid in full. By failing to do this, it will result in interest being charged on interest. To accomplish this, the lender simply acts as if you approached them to pay out the loan and offers an early buy out discount. It is from this lesser amount (the current loan balance less the early buy out discount) that is the base point for the new loan and this is the amount that attracts interest. This should be the case whether you are extending the loan to get back in control of your payments or if more money is being added to the loan.

Work with a flexible lender

If you find yourself applying for a car title loan because you are having trouble paying your bills, you need to work with a lender who will understand you. Negotiate with the lender for better loan terms that you can afford. In case you are not able to pay off your loan on time, always approach your lender and ask for more time. This shows good faith and the lender typically will offer you an extension to pay.

What Terms Are Available For Online Title Loans?

Have you ever heard of Auto Title Loans? Without conducting a thorough research, you may not be familiar with Auto Title Loans. They are also known as Title Loans, Vehicle Equity Loans and Auto Pawn Loans to give a few different names. Not only are they more flexible in repayment terms, they are very much preferable than any payday loan. But if you cannot qualify for a loan from the standard bank due to a blemish on your credit or something about your lifestyle that they do not like, then they can be ideal for you. After fully paying off the Title Loan the lien is removed from your vehicle and the Title Loan lender has nothing to do with you anymore, unless you decide to reborrow. It is much easier to borrow the second, third. etc. time. Many customers build long lasting and strong relationships with their Title Loan lender and use them for quick emergency loans. As the Title Loan lender knows the customer, the repeat loans can be turned over very quickly. The borrower is basically using their paid off personal vehicle as a line of credit. This arrangement works very well for many borrowers.

You will find that many Title Loan Lenders are very understanding and will work with you in situations where you run into difficulties. You must keep in mind that Title Loan lenders are finance companies, not repossession companies, and are not in the game to take your vehicle if you default on your payments. They much prefer to work with you as opposed to taking your vehicle. As Title Loan lenders use your paid off vehicle as collateral for the loan they are secured and therefore do not look delve into details like your previous credit score or financial capacity. Their main concern is your car value, as this is the security, and they lend against this.

The True Benefits of Borrowing With You Paid Off Vehicle

Title Loans are a fast and easy way for many with bad credit and no credit to get an easy loan using the equity in their paid off vehicle. All vehicles typically qualify to be used to secure a Title Loan, whether it is a car, van, SUV, pickup truck or sportscar. Motorcycles can be used, but there are different rules to use these. See Motorcycle Storage Loans to get more information on this way of borrowing. As well there are loans that can be given by using other types of collateral such as machinery, landscaping equipment and such. See Collateral Loans for more information on this way of borrowing.

 

While traditional lenders focus on your credit worthiness and can takes a week or longer to make a decision, a Title Loan lender simply looks at the value of your vehicle and lends against that. If the borrower calls a Title Loan lender and gives the details of their vehicle they can come in straight away to get a loan. It is not only same day service, it can be done in under an hour.

 

Title Loans can be processed online where the borrower simply follows the instructions. Click Borrow Online to see process. Only a smart phone and basic technological skills are needed to get a loan this way.

Auto Title Loans Tend Come With Interest Rates That Are Higher Than Banks

 

As Title Loan lenders are typically smaller than banks, they do not have the economies of scale and therefore must charge more to make a profit and stay in business. But as the hardship of life and government taxation have forced many people into situations that leave them with a bruised credit rating, the benefits of a bank’s lending rates are not available to them. This being the case, Title Loans are in many cases the best option available. Many people are driving around in a paid off vehicle and do not realize that they are in possession of an asset that they can easily borrow against.

The Basics Of Using Collateral For A Secured Loan

In business, money is one of the most important essentials. Without it, you cannot surge forward or stay afloat. The main challenge, however, is locating favorable money-lending avenues. Everything is changing these days because with secured loans in Brampton, and other cities across the GTA, you will ease your way through. This can be done only if you clearly understand the concept of collateral to pursue a loan.

What Counts As Collateral?

Collateral is something that a borrower pledges as security for a loan. The upside about using collateral to secure a loan is that eligibility for the loan is solely based on the value of the asset. When it comes to personal loans, however, your credit history and employment status will be scrutinized to determine if you are eligible for the loan.

There are many different types of collateral that are used in secured loans. These include watercraft, machinery, classic automobiles, jewelry, and many other items that hold a decent value. The amount of money that will be loaned out depends on the value of the collateral. Generally, the more it is worth, the more money you will receive.

Here Are A Few Practical Tips:

  • Avoid Blanket Liens

A blanket lien refers to a loan type that gives the lender access to all of your possessions if you default on the loan. However, the lender will make it very clear if you are entering into a contract that contains a blanket lien. While blanket liens come along with upsides like allowing businesses to access loans at decent rates, the lender has all the power if a default occurs.

  • Bring Required Records

Before showing up for any vetting process to get a secured loan, make sure you bring all of your required records. The lender will inform you of what you need to bring with you. Make sure to write all of these down and bring them. Failing to bring one of the records could result in your loan failing to process and you would need to return another day when you do have the required records. If you do not have one of the required records, then inform the lender and they may suggest an alternative that you do have access to.

Depending on the asset, the lender may ask you to bring items such as identification and proof of ownership. The lender will base the value of the asset off its fair market value, given the condition of the asset.

 

  • Put On Your Negotiation Hat

When reaching out to lenders for a loan, do not just blindly nod and agree with everything they say. Often, there can be room for negotiation. If you are a disciplined borrower with a positive record of paying on time and treat the staff with respect, then you have room for negotiation. If however, your record is questionable, this may not be a good idea.

  • Consider Peer-To-Peer Lending

Asides from the asset-based secured loans, there are countless other money-lending alternatives. In fact, many small businesses prefer peer-to-peer lending to small business administration loans and banks. Hard money lenders have much less stringent terms and have the ability to set their own terms. Although the terms may be stiff, you will evade the unfavorable collateral requirements.

  • Don’t Limit Your Options

To secure a great deal, get over the self-limiting view that only banks or traditional money lenders offer loans. You can find loans from many other avenues with more favorable terms. One of the sure choices you can make is going for the peer-to-peer lending option. As a business owner, you can negotiate your way to a favorable deal. Always remember to be authentic while negotiating to avoid inconveniences.

In summary, you have definitely gathered tons of resources on the essence of loans. You have most probably understood that loans can handily boost your business growth. Do not just go for any loan out there.That said, in all your dealings pursuing favorable loans; proceed with characteristic caution, seeking opinions and advice from relevant sources to avoid making regrettable decisions. One viable way to get the general opinion of a lender is by checking out their reviews on Google, as well as the testimonials on their website.

Common Myths About Auto Title Lending

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?

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 vehicle’s worth, so you won’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 facilities’ 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 borrower’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 car’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 car’s value. The lenders also verify your car insurance. This is why it is also ideal to read through the lenders’ terms before taking action to avoid inconveniences.