How Do Car Title Loans Work?
A car title loan is a type of secured loan that you can get when you have a vehicle that you own outright. When you take out a car title loan, your lender assesses your vehicle’s worth to determine how much loan you can get. The value of the car is determined by an independent appraiser who is hired directly by the lender. In general, you can get up to 50% or more of your car’s value when you apply for a car title loan.
A lien will be placed on your car’s title to secure the loan. This means that the lien is a security interest on your vehicle that allows the lender to repossess your car if you fail to make payments. Your vehicle will be sold to pay off the loan and any outstanding fees.
Companies That Offer Car Title Loans With No Credit Check in Canada
There are many different companies that offer car title loans in Canada. Here are some of the most popular lenders that you can choose from:
ULoan
ULoan is a non-traditional lender that offers car title loans with no credit check in Kelowna, BC and the surrounding areas. They offer loans ranging from $1,000 to $50,000 depending on your vehicle’s value. Their interest rates vary but for a $1,000 loan with a 12 month repayment term, they charge an APR of 36%.
CreditMaxx
CreditMaxx is a lender based in Saskatoon, SK that offers car title loans to Canadians with poor credit. They offer loans of up to $25,000 depending on the make and model of your car. Their interest rates vary but you can use their online calculator to determine the interest rate based on your desired loan term.
CarFunder Ca
CarFunder Ca is an alternative financial company based in Ontario. They offer car title loans with no credit check for up to $25,000. Their loan terms range from 3 months to 3 years and they charge interest rates between 18% to 28.8%.
Frequently asked questions
What are the Eligibility Requirements for a Car Title Loan?
What Documents Do You Need to Qualify for a Car Title Loan?
What Are the Top Benefits of an Auto Title Loan With No Credit Check?
Conclusion
If you need financial assistance with flexible requirements and no credit checks, you can take advantage of the fact that your car can be used as collateral to secure a loan. You should however keep in mind that your lender can choose to seize your car and sell it if you default in making repayments.