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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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