Credit is a commodity that can be easily taken away. For some, it’s an inherent trait of character while others are simply victims of circumstance and unfortunate timing. If you’re the latter type, then knowledge should still empower your situation – if not for yourself, then at least in order to protect those who depend on you to provide.
When you are getting a loan, it is important to know exactly what to do if bad credit is an issue. If you are trying to get a loan from a dealership’s bank, you will need to expect them to want your credit at a score of 650 or higher. The same thing will apply to your own bank. In actuality, the banks that dealerships deal with are even laxer than your own bank will be with you.
If you have credit issues, you are not the only one. Canadians all over are having hard times due to the current state of the country. Bad credit happens if you miss a payment, apply for too much credit, end up in collections, file bankruptcy, and many other unknowns.
When you are in the market for a new car, and your credit is bad because of bankruptcy or foreclosure, it’s important to know how lenders will react. If you’re looking at getting financing from a dealership bank – don’t expect good news.
You could just be one of many that have bad credit due to losing a job because of sickness or layoff, getting divorced or separating from a partner, or moving back to the country after many years.
These examples plus many more are the reasons that people are turning to bad credit loans in Alberta.
One of these types of loans is a car title loan.
These types of loans are easy to get and often are approved the same day. All you need to do is own your vehicle and take a few minutes (roughly 25) to fill out the application in person or online.
Most lenders will accept the following…
- Be older than 18 and you will have to show proof of a valid Canadian Drivers License.
- You cannot own anything on your vehicle to the banks. If you do, you will not qualify. You need to have positive equity on your vehicle, so you must be clear of your lien on the vehicle. The vehicle needs to be 10 years or newer and in good condition.
- You need to prove you own the vehicle and be able to provide the title as collateral while you take out your loan. You get to keep your car during this process and get your title back once your loan is paid off.
- Insurance is important. You need to prove that you have Collision & Comprehensive Insurance on your vehicle.
- The vehicle must be registered in your name and provide your proof of address.
What is great about bad credit loans in Alberta is they are instant approval and there is no waiting game. These loans are getting very popular because of the convenient way these loans are offered. They are safe in the fact that they are lower payments and you are not required to pay interest for the duration of the loan once you pay out the loan.
When you are looking to secure your next loan, whether it’s for a downpayment on a new car, or for a new used car, be sure to get the equity out of your vehicle and apply for a title loan. Good luck!
