Collingwood Auto Title Loans

Difference Between Equity Loan And Collingwood Auto Title Loans

Finding yourself in need of some thousand dollars just to get pass your problematic finances is a common situation. A lot of us end up mismanaging our money because of a dozen reasons. Among these reasons are unemployment, emergency finances, sudden price rise of commodities or even overspending. During this time, you may be torn between Collingwood auto title loans and equity loans. Although both are almost the same thing, they have significant differences that you need to know to determine which financial solution is perfect for you.

What Are Auto Equity Loans?

Auto equity loans are loans available to vehicle owners who have not yet fully paid their vehicle. During the loan term, the owner of the vehicle would be the bank or the credit institution lending the cash in exchange for the vehicle’s equity. Often, the amount allowed to be borrow is only about 50% of the car’s equity. And always there is a minimum amount that a borrower should loan. Aside from these, you will have to present documents to get approved. These documents include proof of your age, employment status, insurance of your vehicle and lastly your driver’s license.

Although you can drive your vehicle while you are paying the loan, the lender has the right to reposses it if you go against the terms of your loan so make sure you know what these conditions are before signing a contract with your lender.

A significant disadvantage of this type of financial solution is that if you have a bad credit, it would be close to impossible for you to have an auto equity loan approved.

What Are Collingwood Auto Title Loans?

On the other hand, Collingwood auto title loans are loans that are available to people who already have fully paid their vehicle. Such vehicle would then be used as collateral for the auto title loan. Just like quot equity loans, you get to drive the car during the loan repayment period and the lenders would still have a right to repossess it in case you break your loan conditions. The good thing about auto title loans in Collingwood is that it is available to good credit and bad credit borrowers alike. This is because your credit score is never a deciding factor to this loan’s approval.

The amount you can borrow through auto title loans would depend on your car’s value and the lender’s offer. Instant Loans Canada, in particular, offers auto title loans in Collingwood which can reach up to $50,000 if the vehicle’s value permits.