Are you considering a quick car title loan in Alberta? Wondering what you need to know before applying? If you’re responsible, car title loans can be advantageous when you’re in a financial bind. But that doesn’t mean it’s right for everybody. Before you take the leap and apply for a car title loan, here are 5 things to consider.

1. Money

It’s important to look at the bigger financial picture, you must be in somewhat healthy shape, monetarily speaking. Because if you’re late on your payments, the loan company is well within its rights to repo your vehicle.

So are you working? Is there steady employment in your life? Are you able to pay all your bills on time? If the answer is yes to all of these questions, then a car title loan can be a good, temporary solution. Ensuring that you — at the very least — have some kind of solid financial footing in your life will be paramount for keeping up with your payments.

2. Interest Rates

One of the most important objectives before taking out a car title loan is to look at the interest rates. Generally speaking, this type of loan has a high interest because of its nature, regardless of what lender you choose. Be sure you understand the interest rates and the amount you’ll be repaying in the end.

3. Credit Score

Your credit score is a critical component for authorizing loans. It essentially deems your trustworthiness. The status of your credit score acts as a benchmark for lenders, banks, and other institutions to determine your ability to repay your loan.

As a result, it will be harder for you to get a better deal with a poor credit score. It’s not that you won’t be able to get a loan, it’s just that if you do lock one down, the terms of your loan will be slanted more toward the favour of the lender rather than you (less amount for the loan, higher interest rates, etc).

And this is understandable. After all, a poor credit score means there’s more risk on their part. You are a liability. So before submitting an application, check your credit score, and ensure it’s in decent shape. And if it’s not, consider trying to improve it before taking out a car title loan.

Takeaway

When you take the time to properly prepare in advance, applying for a car title loan can be easy, effortless, and seamless. And by doing your due diligence beforehand, it sets you up so that there are no unexpected and unwanted surprises during the process.