Lending companies try to reduce the financial risks they undertake by conducting credit analysis of borrowers applying for minimum credit score loans Moncton New Brunswick. The process differs per lender and there are no set regulatory standards. However, most companies rely on the three Cs – collateral, capacity, and character.
3 Cs of Title Loan Creditworthiness
- Collateral: Title loans depend on the asset the borrower will be pledging as security. These loan applications are looked on more favorably by lenders since the company can collect the collateral if the borrower stops payments. The collateral is quantitatively measured by its condition and value and qualitatively by how fast it can be liquidated.
- Capacity: Lenders will make sure that the borrower has the capacity to return what they borrowed, along with the corresponding interest. Car pawn loan applicants have to provide information about their monthly income and employment. While the under- and unemployed can still apply for this loan, they’ll have to prove they regularly receive money, whether it’s from their pension, alimony, disability, etc.
- Character: Every financial institution will consider the borrower’s reputation. While title lenders don’t place a premium on credit scores, they will still look into the applicant’s behavior. There’s no specific approach or formula for this, but character assessment will include quantitative and qualitative methods. Some lenders would look into the borrower’s employment history while others will check credit history or credit reports.
Borrow More Money than Any Competitor has to Offer
You can borrow more with Canada Car Cash. The company can loan you a percentage of your collateral’s total value at low-interest rates. There are also no credit or employment checks to worry about. You can even get the money you need on the same day. Log on to their website or call their toll-free number at 1-844-598-7631.
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