Auto title loans have been a godsend for millions of people this past decade. Because it’s a secured loan, it’s open to anyone who owns a car, even if they have poor credit scores. However, car pawn loan Kitchener Ontario companies will take steps to minimize their risks by doing a credit analysis of the applicant. They will consider three key factors – capacity, character, and collateral. Here’s why:
What Lenders Use to Gauge Creditworthiness
- Capacity: The first thing a lending company will check is the borrower’s ability to repay the loan. You’ll be asked to submit copies of your payslip to prove you’re employed and to show how much you’re earning. If you’re a freelancer, unemployed or retired, you can show the use of your pension slip, disability, or bank account statement to convince the lender you have enough to pay them back.
- Character: The lending company will also look into the applicant’s reputation. Your credit score might not be a major consideration for approval, but your behavior is. There’s no specific formula for this and every lender uses a different approach, but your credit history, employment records, and even your bills will be scrutinized.
- Collateral: A cash for car loan depends largely on the vehicle pledged by the borrower as collateral. It should ideally be one that’s less than eight years old, has low mileage, and well-maintained. These conditions make it easier for the lender to sell the car if it gets repossessed.
Number One in the Industry
Premier Loans Canada is your go-to solution for emergencies and sudden expenses. You can borrow as much as $45,000 without undergoing credit checks. The company also offers low-interest rates and monthly payments. They also have extended loan terms and flexible payment plans. Sign up on their website or call their toll-free number at 1-855-965-1650.
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