Specialized car equity loans York Ontario easily gained popularity because of its minimal requirements and simplified application process. While the presence of collateral means the borrower’s credit score isn’t a big deal, the lending company will still take steps to minimize their financial risks. They do this by evaluating the applicant based on the three Cs of lending – collateral, capability, and character.
What are the Three Cs Lenders Evaluate for Creditworthiness?
- Collateral: Title loans are considered secured loans because you’ll be pledging your car as collateral. The lender will inspect your car’s condition to determine its value and how fast they can sell it off in case you default on your loan. Their assessment will also be the basis of your loan amount.
- Capability: The lending company will also check the borrower’s capability to repay the principal loan amount and interest. You’ll have to prove you can do this by showing either your payslips or proof of employment. You can still apply if you’re unemployed as long as you receive money every month, whether it’s from a pension, alimony, or disability.
- Character: The borrower’s character is also something that financial institutions look into. While there’s no official method for doing this, the lending company will utilize a mix of qualitative and quantitative means. Some lenders might check credit reports or credit history while others will look at the person’s employment or whether they have successfully closed an auto finance loan before.
Lowest Possible Payment in the Industry
Canadian Equity Loans is one company you want on your side if you need quick cash. They can offer you as much as $50,000 in loans. They have the lowest interest rates and even accept early payouts without penalties. Log on to their website or call their toll-free at 1-844-586-6311.
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