One asset that almost everyone has is a car. It’s a useful investment in more ways than one. Aside from transporting you to and from work or school, you can also use your car as collateral to secure a poor credit car loan Abbotsford Alberta. This loan can be used by anyone and for any reason. However, there are several things you should consider before applying for a title loan.
4 Factors to Consider Before Applying for a Title Loan
- Interest Rates: Many lending companies often levy higher interest rates on title loans than other secured loan because it targets borrowers with low credit scores. The higher rates compensate for the risk on the lender’s part.
- Affiliated Fees: Aside from the principal and the interest that you’ll be paying, you might also be paying additional fees. Some lenders also charge administration fees, vehicle inspection fees, etc. It’s best to clarify with the lending company what fees you’ll be paying.
- Repossession: The biggest downside to car collateral loans is the risk that you will lose your vehicle if you don’t meet the terms of the contract. The lender can push their right to repossess and sell your car if you miss payments.
- Outstanding Balance: While the lender repossessing your car and selling it off is done to pay off the loan, it’s sometimes not a straightforward solution. If the car’s equity isn’t enough to cover the loan, the borrower must shoulder the balance.
Number One in the Industry
You can get the right loan with Canada Car Cash. The company can lend you a percentage of your car’s value while also offering you the lowest interest rates around. Their quick approval process means you get instant cash without worrying about credit checks. You can sign up on their website or call their toll-free number at 1-844-598-7631.
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