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What is an auto
pawn? It is a type
of payday loans provider that offers payday loan programs to meet the
needs of those with less than perfect credit.
If you own a car, truck, motorcycle, or other
vehicle, you can borrow up to 70% of the wholesale value, for up to
$50,000 and up to five years. Interest
rates start as low as 3% under some circumstances (see autopawn.com in
regards to typical available rates).
How does it
work? Payday loans
are provided based on the value of your vehicle.
All you need is a title to a vehicle. Auto pawn works much like
other pawn contracts, in that you provide collateral in return for a
loan, with the title to your vehicle being provided as collateral. As with most short-term
loans, you will be provided with the required funds for a set repayment
period and an interest rate (most likely much higher than a typical
loan, but this is the price paid for opting for a short-term loan
rather than a traditional loan).
Should you not
repay the payday loans within the set time period, the collateral (the
title to your vehicle) becomes the property of the pawnbroker. However, in a bind, payday
loans may be the solution to your problems.
There is often no credit check for such loans,
and opting for an auto pawn loan usually affords an approval of a
larger loan amount, a longer repayment period, and a lower interest
rate. This is an
especially attractive option for those suffering from bad credit and
unable to get a loan by traditional means.
Auto
pawns also feature such conveniences as no prepayment penalties on the
short-term loans provided and confidential services.
You can also be sure that, in the rising
industry of short-term loans, pawnbrokers who offer auto pawn contracts
and other types of payday loans will treat you with courtesy. After all, their business
is to make money, and the majority of that money comes from happy
return customers.
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