Cash advances are popular types of loans in Surrey. Having bad or no credit at all is not a big problem if you need a quick loan. If you are new to the concept of car pawns, read this article to discover why you should avoid them.
This is the main drawback and the biggest reason why they are discouraged. Creditors of Car titles base their principles on usury hence charge exorbitant interest rates per annum. Do not be surprised to be charges a rate of more than 200% p.a.
Far from interest charges, several fees are included in the loan such as delayed payment charges, processing fees, lien fees, documentation fees and more. All these will increase your loan burden.
You might even find something like a repossession fee. This is totally absurd and illegal because why should you pay to have your car taken away?
In addition, if the loan repayment period is extended, the interest rate goes up. This is what is referred to as rolled-over loan. A period of 30 days is too short for most people to clear a loan. So, the longer you take to complete paying the loan, the more expensive the loan becomes.
Obtaining a bad credit car loan in Surrey requires a copy of car keys. Some lenders go to the point where they even install tracking systems in a pawned car, such that it can be shut off if loan repayment is defaulted. Imagine your car being taken away and it is what takes you to work, school, or pick your children from school. Car repossession causes a tremendous financial downfall of the owner.
These three reasons are enough evidences why car title loans are bad.