One of the best things about auto title loans is how easy it is to qualify for. A car that’s fully paid is often enough to qualify for a special financing auto loan Mississauga Ontario. But having a car and a clean title doesn’t automatically guarantee that you’ll get a loan. Lenders consider other factors and have their own requirements. And if you don’t meet them, then your loan will be denied.
Common Reasons a Title Loan is Denied
- Your equity is low. Hassle free car loans are secured loans, and the main premise behind it is that the collateral will cover the loan. For that to happen, the equity you have on your car should be substantial. This will give the lending company some security that they will be able to recover their investment. Lenders won’t usually take a risk on cars with low values.
- Your capability to pay back the loan is in question. Credit scores or employment status are not major factors in title loans because of the collateral. While lenders might not do a hard inquiry, they will still check on your capacity to repay the loan. If you are unemployed, retired or disabled, you have to show that you’re receiving money regularly. You can submit payslips, pension or disability slips.
- You still have a balance on your car. The majority of title lending companies only accept lien-free cars for collateral. If you’re still paying for your car, don’t be surprised if your application is denied.
Faster Than the Competition
Get a loan the quick and easy way with Premier Loans Canada. You can borrow as much as $100,000 in loans without undergoing credit or employment checks. The company offers low-interest rates and low monthly payments. Sign up at their website or call their toll-free number at 1-855-965-1650.
For more information visit us on: