Do you need a way to get money quickly but don't want to get a loan? Financing your new business venture or household purchase may be the answer you're looking for. A loan from a bank or other lending institution can help, but it can also be like taking out a high-rate interest in your business or home. To get around this, consider these alternative loans that are more affordable and easier for you to get. Car title loan seems to be ideal options when it comes to any of the financial options in Canada. This is so because this form of loan option is not only accessible by the collateral of a vehicle, but also it can be used for any kind of collateral. You can refinance your car loan if you want to or have extra cash that you need in exchange for this money from different sources. What's more, you may also take out a small business start-up loan if you have ideas that are worth investing in. These alternative financial providers are designed to provide much-needed capital and this makes them the best option when looking for loans. If you don't know how to access these loans, click here to read about them now!
There are many alternatives to a traditional loan offered by banks and lending institutions in Canada including credit cards, vehicle leases, lines of credit, payday loans as well as others.
This guide will introduce you to 6 different alternatives to loans that Canada offers, and this is by no means an exhaustive list.
1. Line of Credit
The most common loan alternative is a line of credit. Instead of receiving a whole amount of money at one time, a line of credit allows you to borrow money at any time over a set amount of time that you agree upon. The amount will be repaid in instalments over the length agreed upon and all payment is due within the agreed-upon date. Many people use this method for everything from paying their bills to financing college tuition or vacations. This is available for business owners as well as personal use, but it's only given out by very specific banks and companies so make sure you know which firms are offering them at your local financial institutions.
2. Credit Cards
A credit card is something that you use every day in your life, and it's what you would normally use to pay for purchases with a line of credit. This allows for the same features as the line of credit such as interest-free payments, and any money up to your limit can be used however you'd like. It may seem like a good idea at first, but remember that the transaction is applied directly against your limit, so letting yourself go over will potentially cause you to go underwater and lose your access to additional funds. Use this only if you can handle 99% of your purchases being charged against a set dollar amount until it's paid off completely.
3. Title Loans
A car title loan is the most indirect option on this list, but it can be very easy to get from a lender that deals in these loans. They can be set up on the spot in about 20 minutes and don't cause any hassle for the consumer as long as you have a vehicle of some kind to go along with them. The interest rate is usually lower than an auto loan, but they can charge up to $15 for every $100 borrowed from you on the loan. Title loans use your vehicle as collateral so if you are unable to pay then they will seize and repossess it.
4. Auto Loans
Vehicle dealers will often offer auto loans to certain customers with good credit. If you are planning on getting or purchasing a vehicle, this could be a way to get you started fast by putting down some money and securing additional funding. A car loan may work in your favour if you are looking to do this with cash, especially since they will allow for an interest rate that has already been determined upon your approval. You must be over the age of 18 and have a clean driving record as well as employment or income.
5. Payday Loans
Payday loans are sometimes referred to as "loans from the devil". These loans are only given out by lenders and loan bureaus that have very specific requirements for you to qualify. They require a certain amount of income, usually in the $1,500-$3,000 per month range and good credit history. They also require you have a line of credit with the lender or loan bureau as well as an active checking account. They may seem attractive at first because they are quick to process and offer quick repayment on top of this. However, they carry a very high-interest rate that can easily pay back much more than what is initially borrowed with the cost involved in paying off 20% interest within 2 months including service fees.
6. Peer to Peer Lending
Peer to peer lending is very similar to credit cards and loans in the way that it works. This type of business is very fast and easy to get involved in because you can use your investment and money to fund opportunities in loans that are made for small business owners or individuals. They are typically all online-based, so you can gain access to everything by logging on to your computer and getting started. The best part is that you don't have to be associated with the person or company beforehand, making it easy for more people than ever before.
To learn more about these different alternatives there are a lot of resources online that allow consumers to read up on them. The companies that issue these car title loans will also provide more information for you to read through and decide if it's right for you. For the best results, be sure to search the entire web for all available sources of information regarding your situation.
Choosing from among these options can be tricky, but it's important to understand what each individual option involves in order to make an informed choice. Spending some time to gain all of the necessary information on a company or deal will help you determine which one is best for you and your unique needs and style of money management.
It is hard to choose among these loan alternatives but it is a good way to go about getting quick cash today with a car title loan.
- Over the years, Ive had a lot of people tell me what I should and shouldnt be doing with my money. Sometimes, the advice was unhelpful – or just plain
- Almost all financial institutions have made their application processes online. Now, availing an online credit card takes minutes and involves no paperwork.