A lot of people have money issues for different reasons. Some emergencies are so dire that you must borrow money in order to deal with them. Car title loans are one lending tool that people make use of in this situation. If you are considering a Pitt Meadows car title loan to help resolve a financial crisis, this article will tell you what you need to know.
Call around and find out interest rates and fees. Most car title loan companies have similar fees and interest rates, but not all. You may be able to save ten or twenty dollars on your loan if one company offers a lower interest rate. If you often get these loans, the savings will add up.
Understand what APR means before agreeing to a car title loan. APR, or annual percentage rate, is the amount of interest that the company charges on the loan while you are paying it back. Even though car title loans are quick and convenient, compare their APRs with the APR charged by a bank or your credit card company. Most likely, the car title loan’s APR will be much higher. Ask what the car title loan’s interest rate is first, before you make a decision to borrow any money.
If you are considering taking out a car title loan to repay a different line of credit, stop and think about it. It may end up costing you substantially more to use this method over just paying late-payment fees on the line of credit. You will be stuck with finance charges, application fees and other fees that are associated. Think long and hard if it is worth it.
If you must get a loan, shop around before making a decision. This is probably a pressing financial crisis, which can have you scrambling for time and money. However, you need to research your options and find the lowest rate. This generates a time savings in the long run, as you won’t need to work extra hours to cover the additional interest you would have had to pay had you chosen an inferior lender.
Try and work directly with car title loan sites while applying for loans online. The Internet is filled with websites that use your personal information to find you a lender, which can be dangerous.
Don’t be surprised if the company you’re getting a car title loan from asks for bank account details. If you do not supply your banking information you will most likely be turned down for the loan. The reason car title lenders collect this information is so that they can get their money once you get your next paycheck.
It is wise to check into the flexibility of a car title lender’s contract in regards to repayment of your loan, in case you run into more financial hardships. Some lenders are willing to extend your loans if you cannot pay them on the due date.
Now that you have a better idea of how a car title loan works, you are better equipped to make a decision on one. There is no need to worry endlessly about your financial problems. You only need to apply for your car title loan at your local lender.