There are two kinds of loans – secured and unsecured. It’s important for you to know their differences, especially as more people are turning to challenged credit auto loans Woodbridge Ontario to secure additional money. Here’s why title loans are considered as secured loans:
Secured vs Unsecured Loans: What’s the Difference?
Secured loans are safeguarded by an asset. With this loan, you agree to put up collateral that has an equity equivalent or more than the amount you are borrowing. The most common secured loans are specialized car equity loans and mortgages. Both the lending company and the borrower agree to specific terms and conditions.
The lender also requires that the car’s title is surrendered to them while the loan is active. However, your car remains with the borrower and once the loan is repaid, the title is returned. It’s low risk and even those with poor credit scores can apply.
Conversely, unsecured loans don’t require collateral. While both parties also have an agreement, the lender will rely solely on the borrower’s promise and creditworthiness. A student loan is a good example of an unsecured loan. Unsecured loans are risky and difficult to qualify for. They also have higher interest rates. And because there is no collateral, an applicant must have a good credit score and a positive credit standing.
Lowest Possible Payment in the Industry
Apply at Canadian Equity Loans today and get the money you need within 24 hours. You can borrow as much as $50,000 without undergoing credit or employment checks. The company has low-interest rates and affordable monthly payments. They also accept early payouts without penalties. You even get to keep your car even while the loan is active. Log on to their website to apply. You can also call their toll-free number at 1-844-586-6311.
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