<script src='' type='text/javascript'></script>What is a Secured Loan? Applying for Car Loans Burnaby British Columbia

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What is a Secured Loan? Applying for Car Loans Burnaby British Columbia

Jul 22, 2015

Secured loans such as collateral vehicle title loans are called secured because all that is needed is a fully owned vehicle as collateral.

A collateral vehicle title loan is a secured loan in which the borrower pledges a fully owned car and car title as collateral for the loan. The debt is thus secured against the collateral. All that is needed by the borrower to apply for this loan is a fully paid for vehicle and the vehicle title should be lien free.

Unsecured loans and short term loans can never be compared against secured loans

Secured loans like vehicle title loans attract lower interest rates than an unsecured bank loan or short term loan due to the added security of the collateral. Borrower’s credit history and employment are also factors that affect unsecured loans and short term loans. Credit ratings or ability to pay have no bearing on collateral vehicle title loans since the loan is already secured with collateral.

Main benefits of secured vehicle title loans

Car title loans have the lowest interest rates in the lending industry. Up to 70 percent lower interest rate can be offered against anything the closest competitor can offer as well. Loan repayment terms can start at 2 years and can go up to 5 years. The borrower can continue using the car while repaying the loan because the lender temporarily holds on to the car title and places a lien on it until the loan is repaid.

All that is needed to apply:

  • No credit check title loans only need a fully owned car and car title as collateral. The car title needs to be lien free so the lender can put a lien on it.
  • A valid driver’s license to prove that the borrower is really the one driving the car being put up as collateral.
  • Any proof of permanent residence such as a utility bill or receipt.

At Instant Loans Canada, we loan you money based on the value of your vehicle, not your credit score. That means that you have fast access to cash whether you have bad credit or no credit at all. Call Instant Loans Canada toll free at 1-866-973-5214 and apply now or apply online. You’ll speak with a member of our dedicated team and see how Instant Loans Canada can help.