If you’re in the market for a new car, or are considering trading-in your current vehicle for a more suitable ride, it can be complicated trying to figure out how much you could afford to borrow. With all the different financing options available out there for purchase and lease, as well as various interest rates and down payments required. We want to take some time today and give you a little clarity when it comes to borrowing money. Car Title Loan is usually a much more convenient option when it comes to borrowing money. It is so because you don’t have to go through the hassle of driving around to find a dealership and negotiate the loan terms. You can just take care of everything right over the phone, computer, or in-person at their office. Let’s take a look at some of the basics when it comes to title loans:

What Is A Typical Car Title Loan?

 A car loan is simply a personal revolving credit line that you can use to borrow money to finance the purchase of your vehicle. They typically have rates ranging anywhere from 3.99% to 20%, depending on your credit score and your down payment. This money can be used for purchase or lease, and these loans range in length from 1 year, all the way up to 5 years, depending on how long you plan on keeping your new ride or trade-in for. Depending on where you live, you will likely be able to finance your purchase or lease from one of the many local lending institutions.

Where Can I Get A Car Title Loan? 

Getting a car title loan is pretty simple nowadays, although you may hear some different terms when it comes to borrowing money from a lending institution. In most cases, we are referring to ‘car dealerships’ as the ones who offer these financing options. However, you also have plenty of other options available to you if they don’t make the cut for their service. You can check out different lending options to determine which one might be a better fit for your needs.

Different Lending Options Available

1. Personal Lenders – 

These are often local banks or credit unions that you can borrow money from. It is usually a much more convenient option when it comes to borrowing money because you don’t have to go through the hassle of driving around to find a dealership and negotiate terms with the sales associate. You can just take care of everything right over the phone, computer, or in-person at their office.  These are often local banks or credit unions that you can borrow money from. 

2. Online Lenders – 

These are typically online lenders that offer loans via their website, where you can register with them and apply for financing without having to go through the hassle of dealing with a dealership. Not only that, but some of these online lenders even allow you to borrow money if your credit score is less than perfect, which means you have a better chance of getting financed if your credit is less than perfect.

3. Guarantors – 

Okay, so you may have heard of something called a co-signer before. A guarantor is essentially the same thing, except that they will work with you on a monthly basis as your debt payments are due. A guarantor is someone who is listed on the title and registration for your car as well as provides proof of income to help ensure that you can afford the payments each month, and they will make sure you pay them on time. 

What to Look For In a Car Loan Lender?

1. How Good Is Their Credit Score? 

Basically, if you are not able to get a car loan from one of the local dealerships, then you are likely going to have a harder time getting financed with any other lender. 

2. What Rates Do They Offer?

Rates depend upon many factors such as how good of a driver you are and your credit score.

3. What Types of Down-payment Options Are Available? 

The most common types of down payments include cash, check, credit card or loan from another source. But there is no need to make any down payment for car title loans.

4. What’s The Best Loan Term Length for My Needs? 

You should look into getting a longer loan term if you have a bad history with creditors and need the time to clean up your credit report.

5. Do They Offer Financing For Used Vehicles? 

If so, you might be interested in looking into a car title loan.

So, When It Comes To Car Loans, What Can I Afford?Most people are now finding that they can borrow money with their cars instead of their credit cards. Your credit score and history may be the determining factor between how much you are able to afford to borrow with a certain lender. It is important that you find a lender who will work with your budget when it comes to taking care of your new ride. But a Car Title Loan is still the best option that you can use using your car title. Car Title Loans Canada is always there to provide your any help. You can make a call at (toll-free) 1-855-653-5451 or apply online for the loans.