A secured loan is a loan in which a borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the lender. For bad credit loans the collateral is a fully owned car and its lien free car title.
Secured loan versus unsecured loan
The opposite of a secured loan is the unsecured loan or sometimes a short term loan that is not connected to any specific piece of collateral. Because of this, secured loans like collateral car title loans offer lower interest rates than an unsecured loan. Payments can be as low as $97 per month. Loan payment terms can be the longest that is offered.
General benefits of secured collateral car title loans
The loan amount for no credit check title loans can be based on the car’s true market value after it is inspected and appraised by the lender. No credit checks are necessary since bad credit has no bearing on the loan approval that is given in one hour. While repaying the loan the borrower can continue driving the car and keep it until the loan is fully repaid.
Minimum requirements
- The car title must be lien free since this is left with the lender during the loan term.
- A valid driver’s license.
- Proof of permanent residence.
It will not matter what your particular credit situation is. Legitimate lenders such as Car Title Loans Canada will help you complete the paperwork and get your loan approved in one hour. You only get the best rate and the longest terms. At Car Title Loans Canada, we loan you money based on the value of your vehicle, not your credit score. Call Car Title Loans Canada Toll Free at 1-855-653-5451 and apply now. You can even apply online.