The lending business is a brutal one. After all, it’s dealing with a lot of money on a regular basis. It is why lenders are very careful when it comes to determining who to approve for loans and how much. Even though companies using car equity Surrey British Columbia for loans have more relaxed standards, they still rely on the three Cs when evaluating the borrower.
3 Cs to Determine Borrower Creditworthiness
- Capability to Pay: Lending companies need proof that the borrower has the capability of paying back a loan. It is why most conventional lenders will ask for employment records or payslips. Title loan companies are not strict about this and even accept applications from people who are unemployed. But you’ll need to prove that you receive money on a regular basis, whether it’s from an allowance, alimony, pension, or disability.
- Collateral Used: Bad credit loans depend on the vehicle that will be used as collateral. Your car will be used as security and will help determine how much money the lender will offer to you. The lender will evaluate the collateral based on its condition and equity. Newer models could result in more substantial loans.
- The character of the Applicant: Since credit scores are not a major factor in title loans, lenders will focus on the applicant’s character instead. They will look for red flags in the borrower’s behavior that could indicate their unreliability.
Best in the Industry
Borrowing money is a painless experience with Canadian Equity Loans. The company can provide you with as much as $50,000 in loans. They offer low-interest rates and accept early payouts without penalties. Their fast approval process means you can get the cash you need within a few hours. Log on to their website to apply or call their toll-free number at 1-844-586-6311.
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