If you have bad credit or have filed for bankruptcy, you may still be eligible for a loan. Do not despair, as there are other options that can help you secure a loan of $20,000 or less. The auto title loan uses a paid off vehicle as collateral or security. If you own a BMW, Cadillac or Lexus you can acquire an auto title loan regardless of whether your vehicle is old or not. If your vehicle is 6 years old or newer, you can still apply for the auto title loan. The advantages are that you can acquire the loan the same day without having to wait a long time for an approval.
Additionally, the loan is open to allow you to pay it off early. This type of loan offers the lowest interest rates in Greater Toronto Area and can be used to improve your credit history. The auto title loan provider can forward your report to the credit bureau.
So take advantage of this option not just to pay off your existing debts, but also to improve your bad credit history. Here are the specific requirements:
1. A few essential documents
There are a number of documents you require that will help to secure a small auto title loan. The loan will further help with your finances or current debts. You can be self-employed, have a bad credit history, earn commission or have a pension. Even with these conditions, you are eligible for an auto title loan. These are documents you already have and do not need to acquire just for the loan. These documents include your insurance policy, ownership form, driver’s license, a void cheque and proof of address. With these documents you can easily apply for an auto title loan.
2. Year and model of the vehicle
It is very simple and not too complicated. It depends on the vehicle you own. If you have a high-end vehicle like a BMW, Cadillac or Lexus you can acquire a loan with very little requirements. However, it is not limited to just high-end vehicles. If your vehicle is not high-end, then it just has to be 6 years or newer for you to be eligible for a loan. You can continue to drive the vehicle during the loan period.
3. Ownership and co-signing ownership
You have to completely own the vehicle. This means you have fully paid for the vehicle, you have no lease and other finances on the vehicle. The ownership has to be on your name. Even if the ownership is not on fully on your name and is on another person’s name, then the other owner of the vehicle has to co-sign the loan. There are no strict terms and conditions. You just have to make sure the person who owns the vehicle with you, is willing to support you with the auto title loan.
4. Vehicle owned by your company
You do not have to worry on whether you will be eligible for an auto title loan when the vehicle you drive is owned by your personal company. The institute that offers an auto title loan understands that your vehicle can be registered under your personal company name. They will still issue the loan as long as you have proof that your company owns the vehicle. It is as simple as this.
5. Full insurance
Your vehicle should be fully insured and on your name or if you are co-signing then on the other owner’s name as well. If you do not have insurance, the loan provider can offer insurance services. This way you can still apply for the auto title loan.
