Why Bad Credit Car Loan?

A lot of Canadians face the wrath of bad credit when  applying for auto loans, credit cards, mortgages, house loans or any line of credit. It stops them from getting the help they need to stabilize their monetary condition. They have to face rejections from every door they knock at. Be it the banks, credit unions or any money lending institution, a favorable credit history is the fundamental requirement. They won’t even consider looking at the loan request for the second time if your credit score is below 574 mark. Not everybody has  a perfect score. Thanks to other loaning options like bad credit car loans, people with below average credit scores can apply for loans whenever they face a cash crunch. Even those who are in the process of building their credit history can take advantage of these types of loans.

How does bad credit affect an individual?

The reason why banks are so cautious while lending out  money is that they don’t want to risk losing their money  in case the customer defaults. . The services of credit rating agencies are being used by banks to ensure that the right borrower is chosen.

Bad credit or we can say a low credit score shows the inability of the borrower to repay the loan amount. It also throws light on the high risk factor attached to the borrower’s profile. , Equifax and Transunion are  the credit rating agencies you might have heard of in Canada. They assign a number to you and that number stays with you throughout. If you’ll ever apply for any line of credit, this number will fluctuate depending on your performance in paying back. It’s just not the credit area where this number affects you. 

Why opt for bad credit car loans?

These title loans are a blessing for people with substandard credit history. Nowadays owning a car isn’t a big deal and almost everybody has one. In difficult times, this car can be a real lifesaver. Let’s say you have overdue utility bills and your paycheck will not be sufficient for them. And, your savings have been exhausted during the renovation work you did for your house. The water and electricity supply will be cut if these bills are not honoured in time. What options do you have in such a scenario? You can ask your friends or family for some help but that can  be embarrassing. One can try a personal loan but a bank won’t entertain you if you have bad credit. You can sell some assets but that’s again a huge loss. You can think of selling your car. But what if we say that you get to keep your car; and that we can give a loan against your car. Isn’t it a win-win! You can use that money to pay the utility bills or whatever financial problems life throws at you. 

How does a car title loan work?  

To get the loan against your car, you have to use the title document of your car. It is a legal document stating the ownership facts of the car. The car make and model are also required. So basically a car title loan is all about using your vehicle which is fully paid off, as collateral to get the loan money. Get Loan Approved is the best source for bad credit car loans. We will keep the title of your vehicle  and a spare set of keys to your car and in return hand over the cash. You can borrow up to $50,000 with us. The paperwork required would be:

• A Canadian driver’s license
• Vehicle’s registration and insurance papers
• Clear Car title papers
• Proof of permanent residence
• Second set of keys to your vehicle 
• Government ID
• Proof of legal age   

Call toll free 1-855-653-5448 to ask more about car title  loans. You can also easily apply online. 

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