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Go To Loans (GTL) is a lender in the financial technology industry. They were first established in 2018 in Ontario, Canada. They provide Canadians with loans based on the equity they have in their car. Borrowers can qualify for loans from $500 to $10,000, with terms up to 48 months. Funds can be used to repair their cars, purchase tires or rims and for other car-related expenses.
It’s important to note that GTL does not directly provide you with cash. Instead, they finance your car expense by paying the vendor you are using directly. If you need to cover a car expense and have bad credit, GTL can be a good option as they provide financing without credit checks or income verification.
How Can I Qualify With Go To Loans?
As mentioned, Go To Loans offers auto equity loans for the purpose of financing various vehicle costs, such as repairs, rims and new tires. Here’s how you can qualify for the highest loan amounts, lowest interest rates and best repayment terms:
- Be a permanent Canadian resident and at least 18 – 19 years of age
- Possess a valid driver’s license and own vehicle with sufficient equity
- Ask a stronger borrower to cosign your loan (optional)
- Have an active bank account with direct deposit capability
Although Go To Loans offers easier approval requirements than many other lenders in Canada, the best way to become eligible for a favourable loan is to apply when you have good financial health and little risk of missing any of your upcoming payments.
What Documents Do I Need to Apply With Go To Loans?
While you won’t have to provide any personal information during the first part of the loan approval process, Go To Loans may request the following documents when you apply:
- A copy of your driver’s license
- A Pre-Authorized Debit Agreement or VOID cheque
- Proof of vehicle ownership
- Proof that Go To Loans is added as the First Loss Payee on your car insurance policy
- Mechanic’s documents that show the estimated repairs and costs
- Your most recent bank statements or other proof of income (optional)
Start by telling Go To Loans about your car, as well as the types of vehicle costs you’re looking to cover. Once all your vehicle information is verified and it’s determined that your car has enough value, you can complete the application process entirely online within a few minutes without a credit check. Afterward, all loan payments are sent directly to the authorized Go To Loans vendor of your choosing.
What Positive Loan Features Does Go To Loans Provide?
All in all, Go To Loans offers simple loan products to cover basic vehicle costs. No fuss, just fast financing and easy approval standards. Here are a few other positive features that you’ll see once you become an official Go To Loans consumer:
- Loan amounts of up to $10,000
- Flexible loan terms (18 – 48 months) and interest rates (starting at 29.95%)
- Only pay interest on the time you’re in debt (prepayments are accepted)
- Free loan payment calculator featured on the webpage
- Get connected with a variety of auto vendors and technicians in your area
- Loan approval is primarily based on the value of your vehicle, rather than your credit history or income
What Costs Could I Encounter With Go To Loans?
Before applying for any type of loan, vehicle repair or otherwise, it’s extremely important to tally up all the associated costs so you can factor them into your budget. After all, not being able to afford your payments could lead to serious debt problems in the long run. Here are some of the major costs you may encounter after applying with Go To Loans:
- Loan Principal – Of course, the largest portion of your vehicle repair loan debt will be your payment plan. Watch out, because a shorter repayment term can lead to higher interest rates and larger payments. Then again, while a longer loan term can lead to smaller payments, you’ll have to pay more interest overall.
- Interest – The second-biggest vehicle repair loan cost will be your interest rate, which can vary according to your loan amount, repayment plan, vehicle value and financial health. The less risky you’re considered as a potential client, the lower your interest rate will be and vice versa.
- Fees – Although your loan payments and interest rate will make up the most significant portion of your debt, Go To Loans does charge some pretty hefty fees when you borrow from them, including but not limited to a:
- $29 – $99 lien registration fee
- $20 insurance verification fee
- $79 administration fee
- Penalties – You should also be careful to consider any penalties that you can incur during your loan term. For instance, you could be charged for every late, short or missed payment. Although early payments (otherwise known as prepayments) are accepted, you may have to pay penalties on them as well.
Keep in mind that these are just some of the basic costs that you could encounter when you apply for an auto repair loan through Go To Loans. The actual cost of your repayment plan may vary. For example, you may have to pay different rates and fees for any of their “promotion interest loan” products (No Payment/No Interest Loan, etc.)
What Are The Advantages and Disadvantages of Go To Loans?
Despite the ease of the Go To Loans application process, it’s still important to weigh the benefits and drawbacks that come with their vehicle repair loans. If the disadvantages look too dangerous for your financial health, it might be safer to look elsewhere:
Advantages of Go To Loans
- Most loan information is present on their website (amounts, rates, fees, etc.)
- Easy-to-use platform and simple application process
- Approval requirements are less strict than with other vehicle-based lenders
- Loan amounts, interest rates and repayment terms are flexible
- Loans can finance a wide range of vehicle repairs and maintenance costs
- No credit check is required when you apply
- Loan approval is based on the equity in your vehicle
Disadvantages of Go To Loans
- Relatively high-interest rates can apply (starting at 29.95% APR)
- Many fees may be included during and after your loan repayment plan
- Defaulting can result in severe debt and the repossession of your vehicle
- A $500 – $10,000 loan may not be enough to fully cover an accident or repair