A lot of good things have been said about auto title loans. You’ve probably heard that these secured loans have fewer requirements and a fast application process. While it’s true you can enjoy numerous benefits when you apply for a bad credit score auto loan Nanaimo British Columbia, you must not forget that it also comes with serious risks.
Top 3 Repercussions if You Default on Your Auto Loan
- Repossession: Once you’ve signed the contract, you’ve agreed to your car being repossessed and sold if you default. The money from the sale will be used to cover the lender’s loss. However, you could get any money left over the debt settlement. Conversely, you might be required to make up the difference if your collateral was sold for less than what you owed.
- Penalties: You’re considered at default once you miss a payment deadline and you’ll be facing penalties. How much these fees are will depend on state regulations. Some areas have a cap on fines while others leave the amount to the lenders. Some companies will even require you to pay repossession fees, storage fees, and other costs associated with pulling out your car.
- Reduced Credit Score: It’s a fact that car collateral loans won’t improve your credit rating, but it can pull down your score. It’s because lenders will report if they pull out your car, and the incident will remain on your record for several years.
Trusted Car Loan Expert
Canadian Equity Loans is your best option when you need fast cash. You can borrow as much as $50,000 from this trusted lender. They also offer low-interest rates and affordable monthly payments. You can also opt for early payouts without fear of being penalized. Log on to their website to apply or call their toll-free number at 1-844-586-6311.
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