There are many reasons why people love vehicle title loans. It’s easy to qualify for, you don’t need to have a good credit score, and you can still use your car even while the loan is active. It’s not all roses though. As with any loan, there are risks involved when you use your car equity Charlottetown PEI to get a quick loan.
Top 3 Risks of Title Loans
- Ballooning Interest Rates: Monthly payments for car collateral loans are comprised of the principal amount divided by how many months the contract will run and the corresponding interest rate. But the latter can balloon if you miss a payment as it will be added to the following month. If this happens often, you might end up paying more than what you originally borrowed.
- Having Your Car Repossessed: This is the biggest risk you will be facing with this secured loan. When you are unable to pay back what you borrowed, the lender could have your collateral repossessed. This can happen anytime and regardless of where you are, leaving you without a mode of transportation.
- Vehicle Sold Off for Reduced Value: The lending company has the right to sell your repossessed car in order to recover the money they invested in you. Unfortunately, there are cases when cars are sold for less than their value.
Borrow More Money Than Any Competitor has to Offer
If you want fair deals, then Canada Car Cash is the company to call. This title loan specialist offers more money than other lenders. They also have the lowest interest rates around and offer extended loan terms. Their fast approval process means you can get the cash you need within the day. Sign up at their website or call their toll-free number at 1-844-598-7631.
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