Involved In An Accident With A Vehicle That Has A Title Loan?Fast Action Finance SEO
Getting loans from large financial institutions can be a hassle. Not only will there be a lot of paperwork, but one may will also be expected to meet strict eligibility criteria. This criteria typically includes having an excellent credit rating and proof of a regular income.
In addition to that, the processing time for bank loans can be long, so they can’t be relied upon for emergency uses. One of the reasons that make bank loan processing are a long process is the fact that they have to check a lot of information, including your credit rating and employment.
To avoid this, many people get collateral loans in Brampton, or many other cities across the GTA. By providing collateral, you reduce the risk that the lender has, and this in turn means that issues such as your credit rating and proof of a regular income may not be important to them. This is because they have a physical asset to secure the loan.
If you get a collateral loan such as a car title loan, it is important to understand what might need to happen in the event of an accident, since this would mean that the collateral would be damaged. This could complicate your loan if not dealt with properly, however, having the right information will help you navigate the issue with ease. If you have a car with a title loan against it and it has been in an accident, here are some things you may want to consider:
Contact your insurer
Call your insurance company, explaining the events leading up to the accident. You can then get advice from them regarding how the issue will be handled. In some cases, for instance, the car will be easily repaired using insurance funds. This works well for minor accidents. For more major collisions such as those that result in the car being written off, the insurance company will pay the remainder of your loan, and you will receive what is left over of the funds.
Make sure you are familiar with your car title loan terms and conditions
When signing up for car title loans, there will always be terms and conditions that you will need to sign against. Review such sections so that you can understand the ramifications of getting involved in a car accident with a car being used as collateral. In some cases, this information will inspire you to become a more careful driver for the duration of the loan repayment, which can’t hurt. If you are unsure about some of these details, feel free to consult the lender for clarification.
Call the lender as soon as possible
If you have been involved in an auto accident and your car has been written off, it would be wise to call your lender as soon as possible. Shows of good faith and honesty can help you have an upper hand when negotiating on how to deal with the rest of the loan.
While some other firms will require you to pay the remaining amount in full as soon as possible, you can negotiate to continue making the payments on a regular basis. Most lenders will give a discount if the loan is repaid before it was originally set out to be. Some firms may even accept other forms of collateral (such as another car, equipment, machinery, etc.) so that you can continue servicing the loan as usual. If you work with a high quality lender, such as Fast Action Finance, you will find them to be very supportive. If you call your lender and are honest about the whole situation, you may be surprised about how easy the process can be.