A Discussion Beyond The Obvious About Car Title Loans Calgary
Car title loans Calgary is one of the most popular ways of generating cash in Canada when in an emergency situation. Every car owner out there knows that there are some risks in this lending arrangement but there are benefits as well.
The BIGGEST ADVANTAGE of this borrowing and lending arrangement is that as the owner of the car you get the cash you need fast enough. Better even, most lenders do not conduct background or credit checks and so you can get the loan even if you have a bad credit rating. Most lenders in Calgary who offer these title loans process the application very fast and so within 24 to 48 hours you will have the cash in your back account. However, the lenders still need to obtain information about you in order to verify that you are the true owner of the car, its model, make, year of manufacture, where there is an encumbrance on its title, etc. In car title loan, the borrower keeps the car and thus can drive it.
You may give the car’s title documents and keys to the lender but you retain the title or ownership to the car so long as you do not default on the loan in which case the lender may take possession of the car and may sell it thereafter. The rate of approval of these loans is very high and so anyone who owns a car in Calgary can get a loan subject to the requirements of residency, nationality and other qualifications that may set by the lender.
THE OTHER SIDE OF THE STORY:
There is the other side of car title loans Calgary you need to know.
Some lenders may offer low rates at first instance but for every additional month you need so as to repay, the rates of interest may rise to higher levels. Borrowing within short period of time is usually backed by high rates of interest and so you may end up paying more than you expected. This is something you need to know as the borrower.
There may be hidden charges in some lending contracts. Do not let the urgent need of getting cash override the need of due diligence. Expressly ask from the borrower about the charges before you get the loan such as processing fee, disbursement fee, insurance fee, etc.
Ask about the penalties and late payment fees and any other charges that may be imposed. This way, you will have all the information at your fingertips before you append the signature on your loan application and then regret later when required to pay charges you did not know, or when the car is repossessed earlier than you thought if you default in repayments.
The BIGGEST ADVANTAGE of this borrowing and lending arrangement is that as the owner of the car you get the cash you need fast enough. Better even, most lenders do not conduct background or credit checks and so you can get the loan even if you have a bad credit rating. Most lenders in Calgary who offer these title loans process the application very fast and so within 24 to 48 hours you will have the cash in your back account. However, the lenders still need to obtain information about you in order to verify that you are the true owner of the car, its model, make, year of manufacture, where there is an encumbrance on its title, etc. In car title loan, the borrower keeps the car and thus can drive it.
You may give the car’s title documents and keys to the lender but you retain the title or ownership to the car so long as you do not default on the loan in which case the lender may take possession of the car and may sell it thereafter. The rate of approval of these loans is very high and so anyone who owns a car in Calgary can get a loan subject to the requirements of residency, nationality and other qualifications that may set by the lender.
THE OTHER SIDE OF THE STORY:
There is the other side of car title loans Calgary you need to know.
- First, the loans are mostly offered for short periods, at most a month.
- Also, the amount advanced is expected to be repaid at once although some lenders may allow the borrower to repay in installments.
- The rates of lending and the terms of the loan vary from one lender to the other and so you need to do your homework well by comparing APRs of different lenders.
Some lenders may offer low rates at first instance but for every additional month you need so as to repay, the rates of interest may rise to higher levels. Borrowing within short period of time is usually backed by high rates of interest and so you may end up paying more than you expected. This is something you need to know as the borrower.
There may be hidden charges in some lending contracts. Do not let the urgent need of getting cash override the need of due diligence. Expressly ask from the borrower about the charges before you get the loan such as processing fee, disbursement fee, insurance fee, etc.
Ask about the penalties and late payment fees and any other charges that may be imposed. This way, you will have all the information at your fingertips before you append the signature on your loan application and then regret later when required to pay charges you did not know, or when the car is repossessed earlier than you thought if you default in repayments.
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