Understanding Bad Credit Personal Loans: Equity Loans Vs. Title Loans

When it comes to urgent needs, you can always run to your vehicle for help. You can use it to secure different types of Orillia bad credit personal loans such as auto equity loans and auto title loans. To understand the difference between these two and come up with an informed choice, I have outlined its differences and similarities below:

Auto Equity Loans

Auto equity loans are loans that would depend on the equity of your vehicle. In this type of loan, the borrower is not required to have fully paid the vehicle. Even if you have not paid up your car, you can use it as collateral for a loan especially when you need fast cash so bad. Here, the basis for the amount of the loan you can borrow is your vehicle’s equity. Different companies have different terms and conditions when it comes to auto equity loans and it is important to you compare each of them to end up with the best loan terms. The bad side about auto equity loans is that it comes with higher interest rates.

Auto Title Loans

Auto title loans are similar to auto equity loans as the borrower is still required to place the vehicle as collateral for the loan. The only difference is that the borrower must own the vehicle already. He or she must have fully paid it. The amount of the loan would then be based on the market value of the vehicle. Other factors will also affect the amount of loan you can borrow such as: the condition of the vehicle, age of vehicle, mileage of the vehicle and its insurances. The good side about this loan is that interest rates are considerably lesser compared to auto equity loans.

Let Car Title Loans Canada Help You

If you suffer from bad credit or don’t have a credit at all, getting loans approved can be very challenging. At Car Title Loans Canada, we can provide you Orillia bad credit personal loans even in less than an hour. We are the leading auto title loans company in Canada and we have been helping Canadians solve their short term cash needs for several years now. Don’t let your financial needs stress you out. Contact us today at 1-855-653-5451 to find out how much money we can let you borrow based on your car’s equity.

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