Title & Asset Secured Loan FAQ

If you have a clear title to your car, boat or other asset, you have a financial asset that you may have overlooked so far. If you lack the down payment that many conventional lenders want, you may have a harder time getting approval.

How to solve your problem using a Title Loan?

We have access to a lender who is willing to finance vehicles, boats and other assets to help you free up some cash for such needs as these. Is your car newer than 2007? Is your car an antique, or at least a collectible? Is the title to a semi truck, or a boat, or another asset with similar value? Then the title can end up saving the day for you.

Common Title Loan / Secure Asset FAQ:

What is a Title Loan?

Do you need money in a hurry? As in…you need it in matter of days? That’s when a title loan can help you out – when cash is a must and you just can’t get it any other way.

So what actually makes a title loan? Anything where you place an asset as the collateral is a title loan. You don’t have to deal with a credit report because it is the value of the asset that is under consideration. If you default, the lender wants to be able to sell the collateral and get his money back. A lot of times you don’t even have to leave the collateral with the lender. Much of the time you just have to provide some paperwork showing that the lender holds the proof of owning the asset. If you take out a title loan on your car, you’d likely have to give the lender a set of keys and a way to track the car. For that to work, though, you have to have the clear title, without any other loans.

What makes title loans so popular?

First, you don’t have to have a credit score. You just have to have clear title to a car.

Second, oftentimes the lender can process your loan 24 hours a day, seven days a week.

Third, in many cases all you have to do is surrender the title. Depending on the lender, you may not even have to give him a set of keys.

Finally, it usually just takes an hour or two for a bank to process the financing, which means you get approval much faster than you would with an unsecured personal loan.

What makes title loans so unpleasant?

Well, you definitely want to pay attention to the interest rate. Some provinces limit the rate that a title loan lender can charge, but you definitely want to read the fine print about rates, charges, fees and the like.

If you don’t meet you loan commitments, the lender has the ability to seize the vehicle being used as collateral. In the meantime, a lien enters your car title until you have paid this loan in full.

Also, you don’t get the full value of the car in the loan. There is always a limit set at a specific percentage of the car’s value.

Amansad Financial does not offer title loans as a company, but we do have connections with funding sources that offer title loans on short notice.

So how does the title loan process work?

You call Amansad Financial and talk to one of our staff about the asset that you would like to convert into some cash. Our lender sends out an appraiser to view what you have in mind as collateral and then gives you a lending decision. If you disagree with the appraisal, you’re not obligated to take the loan. However, if you agree to the appraisal and the terms of the loan, just exchange the title for your funds. As long as you maintain the payments on time, just as with any other car note, you will get the title back when you have fulfilled the terms of the loan.

Our lending network can give you access to title loans with these perks:

Approval for as much as $30,000 the same day.
No credit check on your easy application online
No fees up front
Guaranteed confidentiality
Credit references for other loans
Open loan – no prepayment penalty
Payment plans available for terms up to 5 years
We specialize in lending to the self-employed

What are the requirements for a title loan?

  • Your car can’t be older than eight years
  • Clean title (note: if there is a very small lien, lender may simply choose to pay it off and register their lien)
  • Valid driver’s license
  • Owner is at least 18 years old
  • Owner has a full coverage insurance policy
  • Copy registration papers to confirm ownership

What documents do applicants need to provide?

Applicants need to be able to show steady income. That means at least two pay stubs, a verification letter from an employer or something similar. Proof of residents, such as a mortgage or lease, two different forms of government-issued identification and a voided check.

Additional documentation needed varies with the asset being used to secure the note. If it’s a vehicle, applicants should provide clear photographs of the odometer, exterior, interior, proof of ownership and proof of comprehensive insurance coverage. If it’s land, applicants need to provide a CMA (comparative market analysis) and a property tax assessment. Similar requirements exist when a home is the collateral, as well as the balance of the mortgage and clear photographs of the home’s inside and outside. If the collateral is a mobile home, a property tax assessment, a letter giving a realtor’s opinion the property, proof of insurance and clear photographs of the home’s inside, outside and serial number are necessary. In the case of a trailer or RV, clear photographs of all four sides of the outside and two shots of the inside are necessary, in addition to proof of insurance.

What if the applicant is self-employed?

You can still prove income if you’re self-employed. Income tax assessments, bank statements and other documentation can still show how much money you have coming in each month. Depending on what you can provide as far as verification, you may have to get someone with stable employment, such as a relative, or spouse, to serve as your co-signer.

What are the current interest rates?

There is a range on this, depending on the sort of collateral that the borrower is using. Right now, the range goes from 2.5 to 4.3 percent per month.

Do you have to run my credit history?

We do perform credit checks, but the score does not influence the decision whether or not to fund the loan.

How do you decide how much to lend?

We’ve put together an algorithm that tells us how much the wholesale value is for vehicles that go up as collateral. For other assets, we request proof of certified values, and then we’ll lend up to about 40 percent of that value. The more valuable the asset, the higher the percentage might be.

Do you offer loans to people who receive pensions or disability payments?

We do, but we also want to see that the borrower has kept a stable residency history, and we are more likely to ask for a co-signer.

How long do borrowers have to wait for an answer?

The speed of the process depends on the applicant. The more complete the initial application, the better our chances of completing the assessment quickly. When all of the required information is provided up front, we can render a decision within a business day.

Does the borrower have to surrender the title to the assets being leveraged?

The title remains in the borrower’s name, but there is a lien placed on it until the borrower has satisfied the loan in full. No matter what sort of asset we’re talking about, it stays with the borrower.

Can asset secured loans help improve credit score?

These loans provide reports to TransUnion and Equifax. If borrowers keep making monthly payments, their credit score will continue to climb.

Should you finance a vehicle to finish a home down payment or pay off tax debt?

If you can get a mortgage approval before financing rates start climbing again, you can save yourself thousands of dollars, or even tens of thousands, over the span of a 30-year mortgage. This means that even if you have to borrow to get the down payment in hand, it can be worth it, even if it means paying interest on that loan as well over a couple of years. When it comes to tax liabilities, if you owe the government in arrears, they can come after any of your assets. If you already have a home, the government can place a lien on it. The same goes for your car or other significant assets. You can even have your wages garnished if you do not pay your taxes in a timely manner. You definitely do not want any of these consequences, so it’s better to pay some interest on a car note to get the government off your case.

Is it possible to get this type of loan while in bankruptcy?

It is, but only when the collateral is not part of what is listed in the bankruptcy or consumer proposal.

Why does the car have to be newer than 2007?

The car is the collateral on your loan. This means that if you default on your loan, the lender gets to take your car and sell it to recover the amount of your loan. Cars that are older than 2007 generally do not have enough value to make that sort of loan worthwhile, because the resale value of a car of that age is unpredictable. An exception, of course, is an antique car or a car that has been deemed collectible. Because there is enough interest in those sorts of cars to make them valuable if you have to sell them, our lender will work on you with putting that loan together.

What about large trucks and boats?

One of the most exciting things about this lender is the flexibility about the asset types that you can use. The tightening regulations around issuing mortgages has kept many deserving people from being able to finance home purchases. This sort of loan can give you access to down payment funding. While you definitely want to make sure you can meet the terms of this loan before taking it, if you have the money to do it, it can get you where you want to go as far as purchasing a new home, or solving other issues that need a quick infusion of cash. Give Amansad Financial a call today to get started!