Car Pawn Loans: Choosing an Online Loan Provider
Pawning your car is a simple way to secure a quick loan. Choosing a loan provider, on the other hand, might not be quite as easy.
What to look for in a car pawn loan provider
Here’s what you need to ask yourself when choosing an online loan provider.
How long has the lender been around?
You don’t want to take a chance with a lender that has been around only for a few months. Find a well-established loan provider you can trust. This can take a little research, as well as common sense – if a website looks dodgy and a lender has no physical branches, steer clear.
Can you get loans on all vehicle types?
Is the lender NCR compliant?
The National Credit Regulator (NCR) is there to protect borrowers. It’s best not to use any car pawn loan provider that’s not NCR compliant.
Does the loan provider have legitimate offices?
You might be applying for the loan online, but make sure that the company has an actual location and not just a cell number or post-office box. Not having a physical address could mean the business isn’t as legitimate as it should be.
Is the provider offering a fair interest rate?
Car pawn loans typically involve higher interest rates than bank loans – but don’t fall for scams involving excessively high interest rates. Do some comparisons and find a provider that offers competitive interest rates.
Are penalties imposed for early loan settlement?
Some car loan providers impose significant financial penalties for early loan settlement. Find out what the terms are before you sign the dotted line.
Does the lender charge any “administrative” or “other” fees?
Make certain you know exactly what you’re getting into. Clarify whether there are any hidden fees and what these are.
Why “pawn and drive” is not worth the risk
Avoid lenders that offer to let you drive your car after you pawn it. Because of the higher risk involved, the interest rates on pawn and drive schemes tend to be exorbitant.
Also, a number of “pawn and drive” schemes involve scams – essentially, you lose ownership of your vehicle and then pay rent to continue driving it! This can result in you having to buy your car back from the lender or losing your car altogether.
Loans with Pawn My Car
Pawn My Car is a trusted asset-based loan provider. We offer loans against all types of vehicles. We keep your vehicle in a secure facility and, once the loan and agreed interest are repaid, return your vehicle in the same condition you left it.
Here are just some of the benefits of using us for your online car pawn loan:
- we’re well-established and experienced
- our application process is simple, fast and transparent
- our loans don’t affect your credit score
- we have physical branches all over the country
- we’re NCR compliant
- we offer competitive interest rates and don’t impose hidden penalty fees
- our loans don’t affect your ownership of your vehicle.