What is interest? Paying too much interest on a car title loan in California will not help your financial situation
So, what is interest? Simply put, interest is the cost to a borrower for using a lender’s money.
Let me explain how it works using this one-dollar bill (first dollar bill appears.)
If a lender requires you to repay four dollars to borrow one dollar, how much of the repayment is interest?
(pause) If you guessed three dollars, you guessed right.
Here’s how it breaks down. You borrowed one dollar and you repaid a total of four dollars. (A second dollar appears next to the first dollar.)
(Points) The first dollar you repaid is for the dollar you borrowed.
(Three more dollars appear beneath the second dollar.) But the other three dollars are interest.
(pause) Think of it like this: the money you repay above and beyond the amount you borrowed is interest.
(pause) Hmmm. So, is borrowing one dollar and repaying four dollars a good deal for you?
(Got a Bad Car Title Loan image appears)
Well, does our friend here look very happy?
(pause, smile) The answer is, getting a good deal on a car title loan depends on who the lender is.
Get A Better Title Loan. Straight talk, fast service. That’s what we offer.