Auto title loans look like an easy and fail-proof solution to financial emergencies. After all, they’re easy to qualify for and the application process is simple and fast. The collateral involved means even those with poor credit scores can avail of this loan. But just like any other loan, there are risks involved when you get a special financing auto loan Burlington Ontario.
Common Risks Associated with Vehicle Title Loans
- Having your car repossessed: Losing your vehicle is the biggest and most obvious disadvantage to title loans. It sounds scary at first, but it’s not very different from renting an apartment or buying a house. You lose your home if you don’t pay the rent or mortgage. And the only way to ensure this doesn’t happen is to meet the monthly payments.
- Getting buried in debt: Another risk to this loan is having the interest rate balloon to the point that it exceeds the amount you borrowed. Paying your loan monthly is the only way you can keep rates down. Late or missed payments will result in penalties and the interest rates rising.
- Car getting sold for a lower value. Getting your car repossessed will lead to more problems. Aside from losing your means of transportation, there’s also the danger that your car will be sold for less than its value. If this happens and the amount isn’t enough to cover the quick car loan, you’ll have to pay the remaining balance.
The Number One in the Industry
Enjoy peace of mind with Premier Loans Canada. The company can lend you as much as $100,000 and offer you low-interest rates. They also have low monthly payments and personalized payment schemes. You don’t even have to worry about credit or employment checks. Log on to their website or call their toll-free number at 1-855-965-1650.
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