An auto title loan can be your best option when you’re facing an emergency and need quick cash. While you’re using your car as collateral, it will remain in your possession. A refinance car loan Niagara Falls Ontario also comes with a fixed interest rate and monthly installments so you know how long you’ll be paying for it. But as with anything involving money, you will be facing risks as well.
Top 3 Risks of Using an Auto Loan
- You could be saddled with penalties. The lender is trusting you to send money on the agreed dates. Breaching that trust will result in penalties and this could land you in more debt. These fees will be added to your monthly payments. It could also lead to an increase in your interest rate.
- You might lose your car. Repossession is the biggest risk borrowers face. The lending company has the right to pull out the vehicle when you miss payment or default on your car pawn loan. The lender can either hold onto your car until you pay the loan in full or sell it to recover their investment.
- It could hurt your chances of borrowing money again. A repossession will appear in your credit report and will remain there for years. Other companies might consider it as a red flag and reject your application for a loan or service.
Get You More Money Than the Competition
Apply today at Premier Loans Canada and get the help you need immediately. You can borrow as much as $100,000 from this trusted lender. The company also offers low-interest rates, affordable monthly payments, and flexible payment plans. Sign up on their website or call their toll-free number at 1-855-965-1650.
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