Auto title loans are vastly different from traditional loans because they are considered as a secured loan. It requires collateral that serves as security for the lender’s investment and ensures the company won’t be left empty-handed in the event the borrower defaults on payments. But with the borrowed funds covered, does it mean one can safely walk away from an easy bad credit loan London Ontario?
Can You Walk Away from a Title Loan?
The credit score not being a big factor when it comes to car collateral loans and vice versa is one of the reasons for its popularity. But this has also led to many borrowers to be under the impression that they can walk away from their loan without any consequences.
Whether or not you can walk away from your loan depend on the lending company. There are consequences to defaulting on your loan, but the gravity of it will depend on the lender. Missing payments can result in your car being repossessed. If you’re lucky, the lender will accept it and you’re free from your contract. It won’t even appear on your credit report. However, most lending companies don’t want to take your car because it’s less profitable to sell it. It’s why there’s a clause in the contract that states the lender has the right to refuse the collateral. If you sign it, then you have no choice but to stick it out and repay what you borrowed.
Trusted Car Loan Expert
Applying for a loan from Canada Car Cash is one of the best decisions you can make in your life. The company can offer loans higher than what their rivals can provide. Their interest rates are 70% lower than the others and you even get to keep your car as you pay off the loan. Log on to their website or call their toll-free number at 1-844-598-7631.
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