Car title loan is a type of a secured loan where lien is placed on the title of the borrower’s fully paid off vehicle in exchange for an instant loan amount which is based on the value of the vehicle. It is an easy, fast, secure and confidential way to get much needed funds to pay off bills, manage debt or cope with an emergency without going through any excessive bureaucratic regulations imposed by the banks, credit unions and other traditional lending institutions. Such an opportunity is especially important during these unprecedented times of COVID-19 pandemic, which may have adversely affected lives of many Canadians and caused considerable financial hardships.
At the same time, much like any other type of credit, car title loan may have a profound effect on your credit score depending on the lender’s terms and the way you manage the payments. Being one of only a few personal loan options for those with less-than-perfect credit score, getting a car title loan may help you to rebuild and eventually obtain superb credit rating within relatively short period of time. By reporting all of the payments to credit bureaus, we at Capital Trust Financial aim to help you improve your credit report so that you may be able to provide brighter future for yourself and your families.
In order to better understand the effect of car title loans on the credit score, it is important to take a look at how credit score is calculated:
35% credit history
30% amount owed
15% length of history
10% new credit
10% types of credit
Getting a car title loan with us would have the greatest impact on the credit history part of your credit score, which is considered nearly the most important factor. If you continuously pay off your car title loan on time, your payment history will demonstrate significant positive changes within the first months and will tend to improve as you continue to keep up with the payments.
However, it is also important to note that as with any other personal loans, if you miss the payment or default on the loan completely, your credit score may be further damaged and look even less favorably to other lenders in case you decide to apply for a new loan. Thus, you should stay on top of your payments and thoughtfully plan out the budget in order to fully benefit from the loan in terms of both, credit rating progress and available funds on hands.
At Capital Trust Financial we wish you to stay safe and healthy during these challenging times.
Our program is designed to help you borrow instant funds with your fully paid off vehicle. Apply online for easy approval.
- Greater Toronto Area (GTA): Toronto, Scarborough, North York, Etobicoke
- Peel Region: Mississauga, Brampton, Caledon
- York Region: Thornhill, Richmond Hill, Markham, Vaughan, Aurora, Newmarket, King, Whitchurch-Stouffville, East Gwillimbury, Georgina
- Durham Region: Pickering, Ajax, Whitby, Oshawa, Uxbridge , Clarington, Scugog, Brock
- Halton Region: Oakville, Burlington, Milton, Halton Hills