Title Loan Interest Rates
The thought of getting a loan is a scary process. Whether you are looking to get a title loan to make a rent payment, pay off an emergency bill or simply want some extra cash in your pocket, one of the most important things to understand is the title loan interest rates. Title loans, also known as title pawns, are loans that are made to give you same day cash no matter what your credit score is.
One very important thing to think about before you apply for a title loan is how much additional cash you actually need. This is important because title loan interest rates are generally higher than other loan products, simply because the approval process can be done instantly and the requirements for the loan are much lower than other loan products.
This means that even if you may be approved for thousands of dollars, be sure to only accept and take out the loan for as much as you need so that you can afford your title loan repayment. Many people turn to online title loans because they have tried other options but still find themselves in need of extra cash. The usual title loan customer may have bad or no credit or may not have enough income to be approved for other loan options.
What Title Loan Company Has The Best Interest Rates?
Unfortunately, because title loans are made so easily accessible to customers, some companies may try and charge a higher title loan interest rate. At Trusted Title Loans, we have taken the time to compile all of the best and most trusted title loan lenders in the nation. There are many different options that may suit your needs, such as an online title loan, a title loan on a salvaged vehicle, or maybe even a same day title loan.
All of these different factors may have different interest rates depending on the location and lender. Be sure to sort though the most trusted title loan companies in the country before finalizing your loan.
How To Save Money On A Title Loan
- Ensure you can meet your monthly payments
- The number one thing to account for when taking out money through an online title loan is to make sure that you can meet the loan repayment options. This means that if you are looking to take out $1,000 and the monthly payments are $200, you are confident that you will have at least $200 at the end of every month to make the payments.
- Pick a title loan lender with the best interest rate
- Before you finalize your loan, take a few extra minutes to try and find a lender that may be able to beat your first offer! Trusted Title Loans also conveniently does the work for you. Simply want to speak with a loan officer and find out more about their interest rates before you apply?
- Pay off your loan faster
- By making additional payments on top of your minimum monthly title loan payment, you will save money in the long run on the interest that is accrued. If your monthly minimum payment is $200, try to pay $300 a month for example. This will ensure that your loan is payed off faster than the entire length of your contract. Make sure that before you get your title loan, you ask the lender if there is any hidden fees or early payment penalties.
How Much Interest Will I Pay On A Title Loan?
The interest rate that you will be quoted depends on many different factors. These factors include what lender you choose, what state you are in and the amount of the title loan. Many title loan companies have a monthly interest rate of around 15-20 percent. This means that every month after you take out your loan, you will be paying 15% interest on the original amount. For example; if you borrow $1,000 on your title loan and pay it off after the first month, the total amount replayed will be $1,150. It is important to keep this in mind because a larger loan may result in higher amounts paid in interest.
Why Are Title Loan Interest Rates High?
Because title loan interest rates are often higher than other loan products, they are typically referred to as short-term loans. This means that the longer you are making payments on your loan, the more you will be paying in interest. Try to have a clear idea of when you expect to pay off your title loan, so that you can see exactly how much you are paying overtime. Try our easy to use 3-step title loan calculator to see exactly what your payments would be before you apply!
Don’t be fooled by a company claiming that they have the lowest rates in the industry. Be sure to verify with others or ensure that you are getting the best deal by making sure that you can afford your monthly payments. If you find a lender that you like but are not comfortable with the interest rate, be honest with them and let them know! Often times, the title loan company will have no problem in lowering the rates to make them more affordable.
Is a Title Loan Worth It?
Title loans, like any loan product, has both great benefits and flaws. If you are looking for an online title loan, you probably have discovered that you may not have been approved for other loan options. This is what makes title loans online such a unique product. The borrower can be approved for thousands of dollars with no credit. No other loan options will be able to give you the emergency cash you need in that aspect. However as stated above, it is extremely important to make sure that before you commit to a title loan, that you have a clear idea of how you will be able to make your minimum monthly payments so that you do not incur late fees, and possible repression.
How much can I get with a title loan?
The amount of money that your loan will be approved for is based of off both your vehicle type and your monthly income. The main factor in determining how much can you get with a title loan is based on your vehicle type. This is determined by a few things, such as vehicle age, make, model, and mileage. For example, a 2015 Honda Accord may be approved for thousands of dollars, while a 2004 Honda Accord would be approved for much less.
If you have any questions about how much your vehicle would be approved for with an online title loan, ask a loan officer today.
Many online title loan lenders will also do title loans on salvaged vehicles, however the amount of money they may be willing to lend may be slightly less due to the salvaged title. Title loan lenders are required to ask you how much you typically make from your monthly income to be sure that you can meet the minimum monthly payment requirements for your loan.