The Difference Between Car Title Loans and Car Loans

A car loan is a long-term personal loan you can use exclusively for the acquisition of a new or used vehicle. On the other hand, car title loans are short-term loans where the car title becomes the collateral for the money you are lent. You may use this money for whatever you wish. You borrow money against the value of your car, which means that you agree to hand over the vehicle in case you are unable to repay the loan. You are also required to have a fully paid-off vehicle in order to obtain a car title loan.

Basically, with a car loan, a lender is extending credit to you so you can purchase a car. With a car title loan, you are using your paid-off car to obtain a loan to use for non-vehicle related expenses.

Another great difference between car title loans and typical car loans is credit. You are likely to be rejected by the bank if you apply for a car loan with bad credit. In fact, banks will rarely consider lending money to people with bad credit under normal circumstances. Yet, you will qualify easily for a car title loan even if you have a really bad credit situation. That happens because with car title loans you are putting up your car as collateral, so the lender has something to sell and get its money back in case you default on your payments. They are also able to lend to you because the lender offers you a relatively small amount of money compared to the value of your car.

Easy approval is considered a great advantage in today’s era of short term emergency loans. That is why so many people accept the risk that comes with car title loans. At Fast Access, we make it easy to apply online for a car title loan. We can process your application in about 24 hours, and offer flexible terms with a repayment term of around 1 year. You may pay off your loan at any time during this term and even pay it off early. These are just some of the benefits of car title loans with Fast Access.

As the leading provider of online loans in Ontario Canada, Fast Access is here to help you obtain the right car title loan for your needs. Complete our online application or call us now to start the process.