Difference Between Newmarket Auto Pawn Loans And Registration Loans - Instant Loans Canada

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Difference Between Newmarket Auto Pawn Loans And Registration Loans

Feb 07, 2014

Because of how hard it is economically these days, a lot of us resort to different financial strategies just to solve our money problems. For some, a traditional loan like a bank loan is a good option. But for many who don’t have a good credit, these loans are not their option. They have a limited number of solutions. In fact, there are only about two common financial resorts to those with poor credit statuses and these are Newmarket auto pawn loans and registration loans. Both of these loans are quick money solutions for emergency finances.  As to which among these two you should choose, analyzing how each works can help you decide.

These are the facts you need to know about registration loans:

  • A registration loan is a form of cash payment wherein you can borrow cash until you next pay check.
  • You pay a registration loan with your pay check either through an automated deduction or through paying the money borrowed by visiting the company physically.
  • To be approved of a registration loan, you need a car with a title under your name.
  • The car doesn’t have to be free from any form of financing just so you can borrow cash. Hence, even though the car has liens, you can still qualify.
  • Unlike auto pawn loans, lenders won’t place a lien on your vehicle when you borrow money from them and the interest rates under this type of loan is much cheaper.

Now here are the facts you need to know about Newmarket auto pawn loans:

  • You can only borrow cash through auto pawn loans once you can secure the loan with collateral – that being you vehicle.
  • The vehicle must be FREE from any type of liens for you to qualify to auto pawn loans. You cannot use as collateral a vehicle that has already been refinanced.
  • Until your loan has been completely paid, your lender will hold the title of your vehicle and will have the right to repossess it once you fail to comply with the terms and conditions of the loan.
  • You can borrow a bigger amount of money compared to registration loans as Newmarket auto pawn loans are based on the equity of the vehicle you use as collateral.
  • Repayment periods are longer compared to registration loans.

Whether you will secure a registration loan or an auto pawn loan depends on which of the two can offer you more benefits than risks. Weigh them before getting yourself into the deal.