People with a bad credit score usually have a hard time getting approved for a traditional bank loan. We all know that banks are pretty tough to apply for when it comes to lending money to people who have plenty of unfavorable debt in their records. Banks do not grant loans easily to this type of borrower since they find it risky.
However, you mustn’t feel helpless because you can still apply for a vehicle title loan even if you have bad credit score since an equity loan requires no credit checks. When you are in urgent need of cash, every moment counts, so applying for a lengthy bank loan will only bring more frustration when you don’t know whether you’ll get approved or not. Therefore, a vehicle title loan is the best option for you to consider.
What are the pros and cons of applying for a vehicle title loan?
The term and conditions of a loan vary from lender to lender so, let’s take a look at the advantages offered by these loans.
- The credit score isn’t an issue: Even when it’s really low, lenders won’t check it.
- No collateral: With some lenders, you need to provide collateral which can be any valuable asset in case you are unable to pay your loan. Not giving any collateral to the lender also has a disadvantages. The fact that your credit score isn’t checked and you are still able to get the loan in the first place affects the lender.
- Use the borrowed cash for any purpose: When you get the money, it’s yours. The lender won’t question your purpose for borrowing. What you’ll use the money for won’t matter, as long as you’ll be able to repay it in full.
- Quick cash: We offer a fast and easy loan process which isn’t as difficult as it would be at a bank so you will get the funds that you need quickly. This is very convenient in times of emergency.
Now let’s take a look at the disadvantages of these loans, before making a decision:
The Cons are:
Due to the nature of these loans, they often come with high-interest rates. The main reason why things are this way is because you’re seen as a high-risk customer. You should make sure you’re getting the best deal. This can be done through research and by comparing various lenders.
Most title loans don’t provide the ideal amount for a loan and the loan term is shorter. They need to be paid within the year, but this depends on your choice of lender.
If you don’t pay the loan on time then the interest rate becomes higher, and you will be charged a penalty for late payments, which will make the loan turn from a relief to a nightmare.
Late payments will affect your credit score
If you think that getting a car title loan and being late on your payment won’t affect your credit score then you need to think twice before applying for one. Because late payments can affect your credit score in a great way that you may not be able to borrow money ever again.
Benefits of a vehicle title loan from Loan Center Canada:
- Loan Repayment Terms From 61 Days to 72 Months
- You can borrow up to $50,000
- Monthly Payments As Low As $68/month
- Super Low-Interest Rates – From 10% to 49% APR
We have been in the Business since 2008. Find the solution to your money problems at Loan Center Canada. Paying high-interest rates on loans is not something you should put up with when your credit score is not good. If you can’t handle it, you will eventually start missing on payments. As a result, your credit score will drastically go down. Debt no matter how small or big it is will always a burden on anyone’s shoulders. To get the funds you need, call us.
Apply for a loan with us as we can beat any competition and add an extra $200 to your existing loan-able amount. Contact us at our toll free number which is 1-(844)-604-4143 and get a personalized financial solution today!
You Can Also Follow Us On Social Media: