Title loans have become very popular in the past few years. Also known as collateral loans, they’re a type of secured loan known for its easy application process and swift approval. While most title lenders are very accommodating, it’s not surprising that some borrowers have concerns about the collateral they offer. Specifically, there are questions as to whether you can use your car to get car pawn loans Edmonton Alberta if you haven’t finished paying for it.
Can You Use a Car That’s Not Fully Paid as Collateral?
One question often asked by prospective borrowers is whether they can use their car as collateral even if it’s not fully paid yet. The answer rests on the specific lender.
Each lender has a particular set of requirements. Most will naturally expect a lien-free title set in the borrower’s name. However, there are companies willing to provide loans even if there’s an outstanding balance on the vehicle. In the majority of these cases, it will be assumed that the owner has garnered enough equity that the collateral can be used to pay off the loan. After all, a special financing auto loan depends on the equity and not on the outstanding balance. The lending company will also consider how much the borrower still owes on the car when it’s time to evaluate its value. This will also determine how much loan the company will be willing to extend.
Get You More Money than the Competition
As one of the country’s most prestigious lending companies, Premier Loans Canada accepts all kinds of vehicles for collateral. The company offers borrowers as much as $45,000 in loans, with low-interest rates and unmatched payment schemes. You can call them at their toll-free number 1-855-965-1650 or log on to their website to apply from home.
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