What are Car Title Loans Interest Rates?
Car title loans are personal short-term loans that offer instant cash. They are popular loan types with many benefits and this is making them increasingly common. The loans use your car as collateral with the lien moving over to the lender for the entire loan period. The loan is based on the market value of your vehicle and is generally required to be repaid within 24 months. Once you have repaid the loan, the lien will move back to you.
High, But Competitive
Car title loans interest rates are high; however they are competitive in the market for short-term personal loans. The interest rate is quoted as the monthly rate so you must be aware that you need to convert it to an annual rate to compare it to offers from other lenders. While the interest rates are competitive compared to alternative loan options, some lenders offer interest rates that reach into three figures.
Reading the Fine Print
It is always very important to read the fine print in the agreement before you sign it. This will ensure that you understand all the terms and condition of the loan. One of the most important points to consider is the car title loans interest rates. Never accept the first offer that you are given or agree to a loan from the first lender that approves your application. Make sure the terms and conditions are competitive and suit your financial situation, with particular note paid to the interest rate being offered.
The Implications of the Interest Rate
There are many implication when it comes to the interest rate of your loan. This figure will impact how much you repay on a monthly basis, as well as how much you have to pay back overall over the life of the loan. The higher the interest rate, the more you will repay over the life of the loan so you will want to try to negotiate the lowest interest rate you can. It is possible to use a loan calculator which will assist you work out how much you will need to pay on a monthly basis, as well as over the life of the loan once you have the loan amount and interest rate. This will assist you compare loan offers which is important to do before you sign a loan contract. Always shop around for the best loan deal on offer as when it comes to car title loans interest rates you are likely to find differences.
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