A lot has been said about the benefits of getting an auto title loan. But borrowers should also realize that every loan comes with risks. For a car pawn loan Calgary Alberta, the risks come in the form of higher interest rates, penalties, and repossession.
What Happens When You Don’t Pay on Time
Paying on time is critical in car collateral loans. But sometimes we can’t pay on time despite our best intentions. Several things can happen when this occurs, the lender could charge you a penalty for it. If you have an auto-debit arrangement with your bank, they can levy a penalty for non-sufficient funds (NSF) if you don’t have enough money in your account.
Some lenders install a GPS tracker on cars used as collateral. They can use it to find the lender. They can also activate an ignition immobilizer to prevent the owner from continuing to use the car while the loan isn’t repaid. The lending company can also repossess the borrower’s car. They can pull it anytime and anywhere. The lender can then sell it to recover their investment. If there’s still an outstanding balance after the sale, the borrower will shoulder it.
Same Day Cash
Apply today at Premier Loans Canada and get the funding you need within 24 hours. You can borrow as much as $100,000 from this trusted lender. Our company also offers low-interest rates and affordable monthly payments. We also have extended loan terms and flexible payment plans. You don’t even have to worry about credit or employment checks. You also retain possession of your car. Sign up on our website or call our toll-free number at 1-855-965-1650.
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