A common issue with Arizona car title loans is that the companies usually make use of interest rates that are higher when compared to the rates applied in conventional loans. The interest rates may also differ by a wide range so that it is often advisable to scout around to find those lenders that have the lowest rates. If the borrower happens to choose anAZ title loan provider with a very high interest rate, there is a possibility that the repayment of the loan would be too much for the borrower’s budget and he might end up borrowing again just to repay the loan. Another potential pitfall to look into is the increase in the applicable interest rate whenever the borrower is unable to come up with the payments on time or when he asks for an extension of the loan term. Lastly, the borrower must also look into the possibility that his budget is simply insufficient for the repayment of the loan because this could be the worst scenario when he loses his vehicle.