What are title loans on cars
A car title loan is a lending offer that allows a client to borrow money using your vehicle as a security. He still keeps and continues using the auto, but if the customer doesn't make lending payments, the lender can legally seize the auto and sell it to pay off the loan.
Requirements for a car title loan in Canada
- to a customer:
- at least 18 years old
- Canadian citizen
- regular income
- to a vehicle:
- full car insurance
- mileage no more than 200,000 km
- the car must be registered in the name of the borrower
- the car should not be in collateral or under repair
- the car should not be older than 8-10 years
What documents can be required?
Regardless of the Canadian province (Vancouver, Toronto, Hamilton, Calgary, Brampton) or lender, the list of required documents is approximately the same:
- ID
- auto appraisal documents
- auto insurance
- car license and registration certificate
- car title documents
- proof of income and employment
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 20,000 | 7.60% | 823 |
| 20,000 | 10.60% | 1,148 |
| 20,000 | 13.60% | 1,473 |
| 50,000 | 7.80% | 2,113 |
| 50,000 | 10.80% | 2,925 |
| 50,000 | 13.80% | 3,738 |
| 100,000 | 8.00% | 4,333 |
| 100,000 | 11.00% | 5,958 |
| 100,000 | 14.00% | 7,583 |
| 200,000 | 8.20% | 8,883 |
| 200,000 | 11.20% | 12,133 |
| 200,000 | 14.20% | 15,383 |
Can I get a car title loan with no credit check in Canada?
No, Canadian financial organizations must perform a credit check on the borrower, but his credit rating will not be critical when deciding whether to issue a loan. Auto title loans are often considered as a type of secured loan because they are backed by the value of your vehicle, reducing the emphasis on the credit history. So, many lenders in Canada who offer car title loans do not require a good credit score for approval.
However, it's essential to note that while the credit check might not be a primary factor, other criteria such as the value of your vehicle, your ability to repay the loan, and your overall financial situation will still be considered by the lender.
How do I refinance my car title loan?
Review the terms of your existing car title loan, including the interest rate, remaining balance, and repayment schedule. Determine your car’s current market value. This can be done through online valuation tools or a professional appraisal.
Look for lenders that offer car title loan refinancing. This can include banks, credit unions, and online lenders. Compare their interest rates, fees, and terms. Some lenders specialize in refinancing car title loans, which might offer competitive rates and terms.
Prepare necessary documents, which typically include your car’s title, proof of income, proof of insurance, and identification. Apply for the refinancing loan with the selected lender. You may need to provide details about your current loan and the car’s value.
Carefully review the new loan offer, including the interest rate, repayment period, fees, and any other terms. If you’re satisfied with the terms, accept the offer and proceed with the loan agreement.
Use the funds from the new loan to pay off the existing car title loan. The new lender will often handle the payoff directly to the old lender. Begin making payments on the new loan according to the agreed-upon schedule.
See the similar FAQ about Canadian banks:
- B2B Bank SMART Loan
- B2B Bank investment loan
- B2B bank RRSP loan
- CIBC collections contact
- CIBC loan and financial calculators
Details of companies offering the financial services:
BHM Financial Group
Head office’s address: 1090 Avenue Pratt 1090 Avenue Pratt, Outremont, Montreal, QC
Contact center: 877-787-1682
Web-site: https://www.bhmfinancial.com
Car Title Loans Canada
Head office’s address: 4-2880 Queen Street East
Contact center: 1-877-804-2742
Web-site: https://www.cartitleloanscanada.ca/
EasyTitleLoan
Head office’s address: 1-1183 Cecil Avenue Ottawa, ON K1H7Z6 Canada
Contact center: 1877-213-8686
Phone: 613-845-0152
Web-site: https://easytitleloans.ca/
FastAction Finance
Contact center: 1-877-346-2274
Web-site: https://fastaction.ca
LendforAll
Web-site: https://lendforall.ca
Title Loans online
Contact center: 1-800-455-3997
Web-site: https://www.titleloansonline.ca
uLoan
Head office’s address: 212 – 2900 Pandosy St Kelowna BC, V1Y 1V9, Canada
Phone: 250-300-3015
Web-site: https://uloancanada.com/