“I am looking for the ways by which I can borrow money using my car as collateral”. Several people have this notion and this phrase is heard by most of us at some point in our lives. Are you interested in borrowing money for your car? Well, if so, then you’ve come to the right place. There are plenty of lenders that want to lend to people who have a lot of equity in their car as collateral, which is great because it means that people who need cash don’t need to worry about losing their car. It’s safer for them and it provides more security too.
For your car loan application to be considered, you must have some form of proof showing that your vehicle does indeed have enough collateral and a low credit score doesn’t qualify either. There are plenty of lenders out there who aren’t going to consider your credit score because the reality is that if you have a bad score then it doesn’t necessarily mean you can’t afford the payments. It just means that you may not be able to get approved for loans as easily as other people. If you have equity in your vehicle then it should be more than enough for a lender to consider your loan application.
There are many different forms of loan applications to choose from. As long as you have a vehicle with enough equity, they’re going to want proof of income and proof of residence. In some cases, lenders will want proof of insurance on the vehicle as well. You want to have as many forms of proof as possible because these things can clutter up your file and make it difficult for them to find the information they need to consider your loan application.
If you’re looking for a lender who will consider your chances of being approved on your credit score alone then you’ll probably need to do everything that we’ve suggested here to be able to get this money quickly. It doesn’t mean that you can’t be approved for a loan with a bad credit score, but as long as your score is above average then you should have no problem.
Even if your credit score is below average, using your vehicle as collateral can help you get the money that you need quickly. This is because it says that you are more than willing to make a payment on time and pay it off on time. Unfortunately, many people don’t have this kind of mentality because it makes them look bad to lenders and they just may not be able to get approved no matter what they do. If you have enough equity, it’s really easy to get approved for a car loan even if you have bad credit.
Now we’d just like to let you know that there are risks involved if you go this route. Having a car loan means that your payments are probably going to be more expensive than they would be on a personal loan or normal bank loan. In addition, the interest rate is going to be higher as well. We do want to stress that if you don’t make your payments then you shouldn’t expect the lender to give up their vehicle without a fight. They will take legal action, which means you might be forced to pay a lot more money than you thought.
That being said, if you need money and you have a car that has enough cash value to make the lender consider your loan application then it’s certainly worth a try. There are lots of people who have done this before and they were able to get the money that they needed. You need to remember that if they don’t accept your loan application initially, it doesn’t mean there aren’t other companies out there who will. Now you must be wondering about the ways by which you can borrow money using your car as collateral. Let us have a look at the steps of the same.
Steps for getting car collateral loan
- First of all, you need to have a car with some cash value in it. Does your car have enough equity to make a payment for the loan you are going to apply for? If it is, then it’s possible that you can get approved for the loan. If it is not, then you will have to consider other options like selling your car outright (if you don’t want to). What we mean by this is that if you cannot get a car loan, consider selling it and choosing another one as your next car.
- Let us state now that this work requires paperwork. You can expect that you will be given some paperwork and forms to fill out because your car is going to be used as collateral, you will need to sign some forms that say that you agree to let them take your car if you don’t make the payments. There are certain documents that you will be required to present to get the loan. The list of documents includes the following.
- A lien-free vehicle.
- The second set of keys to your car.
- Insurance and registration of your vehicle under your name.
- The title papers of your car.
- Proof of your permanent residency in Canada.
- Proof of your legal age according to your province.
- The vehicle should not be older than ten years.
- Always remember, that this should not be taken lightly even if you have really good credit and are sure of your ability to make the payments on time, still consult a lawyer before signing anything or making any kind of commitment. We don’t want you getting into trouble because of some bad legal paperwork.
- If you see that your car doesn’t have enough cash value to make the payments then you should get rid of it and buy another one. This is one of the things that you must do.
- In case you want to sell your car, then you need to decide whether to sell it outright or choose an auto buyer loan program. If there is money from a previous loan on your credit report, then ask the lender(s) about their EZ auto loan program and see what they say about it.
- If you have a credit score of not more than 600, then you should consider getting a secured loan for your car which means that your car will be used as collateral to help get approved for the loan.
- If you do have the money (cash value) in your car, then you can choose to buy out of an auto loan program or you can choose an EZ auto loan. Make sure that you know what is better and what’s best for your money. Always remember to check all the details to make a well-informed choice here.
- If you decide that you want to buy a new car, then you should also check for a dealer financing program. These types of financing programs are designed to help people who are in the same situation. They have great rates for people with no credit or bad credit. Research is a great thing and thus you can make use of it.
- If you want to get an auto loan for your old car, then go ahead and apply for it.
- If the lender tells you that they will need your car for a certain amount of time, then ask them how long will it take before they give you the car back.
This is all that you need to keep in mind. Now let us have a look at the steps that you can follow to get the loan and borrow money from your vehicle.
Steps to get a car collateral loan
Step1- You will be required to fill out an online application form available on the website. Make sure that you fill out the online application form with accuracy to avoid any further consequences.
Step2- After filling out the online application form, you will be required to submit the list of documents mentioned above to get the loan approval.
Step3- After completing the above steps, you will receive a call from our experts to discuss the loan amount. The amount of the loan will depend on the condition of the vehicle and also the market value of the vehicle will be kept in mind.
Thus, these are the minimal and basic steps that you will be required to follow to borrow money using your car as collateral. If you are certain to get this loan, then you can consider getting the loan from Canadian Cash Solution and meet your financial needs with ease.