If you need extra funds to pay bills, reimburse someone, or even for a down payment towards another loan, car title loans in Alberta are a great way to get ahead. To take out a car title loan, you simply must prove you own your vehicle, and the title must be clear of any liens owed on your car. You can get a title loan on many different types of vehicles including cars, trucks, SUVs, ATVs, and certain types of camper trailers and RV homes.
When you take out a loan with us, the title of your car is used as collateral. And better yet, no credit check is used for your car title loans when you come to us. There are some great car title lenders for car title loans in Calgary, and more and more people are learning about how to secure car title loans in Edmonton, Calgary, and the rest of Alberta to leverage the equity of their vehicle.
Car title loans Calgary
We will be looking at an overview of how credit works and how title loans affect your credit in Alberta.
How do loan approvals work in Alberta?
- In Alberta, securing a car title loan is a big advantage and getting a loan without good credit is a hard thing to come by when the banks in the Calgary area generally require a lot from you before you can get approved. You have to have a good credit score, and you often must provide proof of income. You might have the ability to pay back a loan and afford the payments but not necessarily the credit or the downpayment to do so. This can be unfair when life provides unforgiving circumstances, and you have the income to pay the loan off early.
How can life’s many different circumstances affect your credit score in getting a loan approved?
There are many reasons you may not have the credit situation you would need to secure a typical loan from the banks.
- You could have started a new job. When you start a new job, banks in Alberta want to see you at your job for six months to a year before they would allow you to take out a loan. If you are an entrepreneur and start your own business, it can be even more challenging. I have started my own business, and I found out the banks in Alberta do not recognize your income for up to two years, and at that point, they will require proof of income with two years of T-4’s. Car title loans can help you with a loan in this case as there is no credit check.
- A person could go through a divorce and file bankruptcy due to having joint credit, and maybe one of the people files bankruptcy for a fresh start. If this is the case, you still may have a secure income from your job but no longer the credit ability to apply. It takes seven years before you can start to rebuild your credit. If you need, you can always use your vehicle to get that money from a title loan lender.
What credit will be required when you go to secure your auto title loan in Alberta?
- None. There is no credit required for you to secure a title loan in Alberta with most auto title lenders, and you could even apply for your loan online and get an answer the same day. When you are trying to rebuild your credit or keep a high credit score, it is important to keep your credit applications at a minimum, or your credit score can be affected. When you apply for a car title loan, your lender will not need a credit check to approve you or even proof of income. Simply all that is required is for you to provide the title of your vehicle as collateral to pay back the loan.
The best part of taking out a car title loan is that the payments are affordable, and you get to keep your vehicle if during your loan term. Just ensure you have a plan to pay back your car title loan payments on time and pay the loan off even sooner if you want to avoid the interest rates.
Can I build my credit by financing a car?
In short, yes. Any expenditure that is recorded on your credit report will go to building your credit score. As long as you’re consistent with your payments and not missing any of them as they come out, then your credit score will improve whether you’re financing a car or doing it through some other means.
Is a down payment necessary to finance a car?
It depends. In most cases, it’s not necessary in order to finance a car, unless of course, it’s a term that the bank/seller has set in place as a condition that must be met. Additionally, the requirement of a down payment could also be based on your credit score. But generally speaking, it’s not a necessity to finance a car.
However, there are advantages to down payments. A down payment will make the approval process much easier and more efficient. This is because it builds your credibility, and as a result, fosters trust in the bank or whoever you’re financing your vehicle from.
Can I pay off a car early when I finance it?
Absolutely. That’s one of the perks off auto loans, they are open loans. Meaning, when one payment is paid (and assuming you have the additional funds to do so), you are able to throw as much money as you can at the loan, which will also reduce your interest. You can also pay it off in full, if you want.
Final Thoughts
When it’s all said and done, a car title loan can certainly impact your credit score. Whether its positive or negative will depend on your actions and how you handle the loan. If you stay up to date with your payments, your credit score will improve. If you fall behind and begin missing payments, your credit score will take a hit. So it’s simply a matter of being responsible.
At Cash Loans Alberta, we help you get the money you need with our effortless approval process. Moreover, we aim to be there when you need us in those unexpected moments when troubles are abundant and money is scarce.
If you need cash fast, or are simply interested in learning more, contact us today for additional information.
