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Using your two most common assets for borrowing power

You have a home.  You have a car.  You have cash.  It’s that simple.  The value in your two most common assets enables you to receive serious offers from lending institutions based on the value of those assets.   But is it wise to borrow using your home or car? Here’s a perfect scenario.  You’ve found yourself in a bit of a financial situation.  You had repairs you hadn’t anticipated or had a sudden unexpected interuption in funds.  Unfortunately, the bills and financial committments don’t take a day off.  This is where a BorrowWithYourHomeorCar.com loan is a perfect fit.

What about the rates?

BorrowWithYourHomeorCar.com is a division of Prudent Financial.  Prudent is well known for providing some of the lowest rates in the GTA to people with lower credit scores. Your loan rate is tied into your credit rating.  It’s understood throughout the financial industry that it’s a “rate to risk” formula.   However many banks today won’t lend to individuals who don’t have a close to perfect credit rating.  A sub prime lender such as Prudent Financial believes people deserve a second chance.

How does this effect my credit score?

As mentioned, your loan rate is tied into your credit rating.  But it’s important to always ask the lending institution whether your positive payback history will be reflected in future loans.  With a Prudent Financial loan, your payback history is reported to the credit bureau.  This works in your favour as it counts towards a credit rebuilding program.  And each loan you secure and pay back on time works towards lowering your borrowing rate because the loans are all considered in future credit rating assessments.

Will I have use of my vehicle?

If you receive a loan based on the value of your car, it’s a BorrowWithYourCar loan.  This type of loan simply means you have been lent money based on the value of your car.  You still use your car as you always did.  As long as payments are made to whatever institution lent you money, nothing changes.

What’s better? Borrowing with my home or my car?

That all depends on your situation.  As mentioned earlier, a loan using your vehicle is known as a  BorrowWithYourCar.com loan.  And loans that take your home ownership into account are referred to as BorrowWithYourHome.com loans.  In some situations, the lender may need to discuss both assets to secure the loan needed to fit the situation.  But what’s very important to note; you should ask lots of questions of the lender you finally choose.  Are you borrowing money that will benefit you in the long run.  If your loan doesn’t report to the credit bureau and the payback terms are ridiculously short with very high rates, you need to shop for alternatives.

Know and trust your lender

 Mountain ViewIt’s important to know that you are agreeing to a loan with terms that are workable for your situation. For example, at Prudent Financial they pioneered the Responsible Lender Pledge.  The pledge ensures that every customer’s current financial situation is assessed prior to providing a loan.  The loan officer must determine terms that will not drastically effect the recipients situation, providing the recipient adhere’s to responsible spending and budgeting during the course of the loan payback period.

 

Questions?

Securing a loan always involves research and finding a comfortable fit between lender and borrower.  If you have questions Prudent Financial would be pleased to answer them and help you determine if a Prudent Financial BorrowWithYourHome or BorrowWithYourCar loan is the right choice for you.  You can reach us by calling 416.223.9300 .  Or if you wish to speed up the process fill out a simple 2 minute application and we promise a prompt and courteous response.  Apply here.   We look forward to the possibility of assisting you soon.