Like most loans, title loans come with an interest rate. For those not aware of what interest is, it is the additional charge that comes from the privilege of borrowing money from a loan, which is expressed as an annual percentage rate, or APR.
With title loans becoming a popular way to get fast funding, there are many lending companies now offering car title loans. But, they all tend to have similar considerations that help them decide how much they calculate in interest.
Some considerations that go into calculating the type of interest and the amount a lender will charge a borrower include:
- Opportunity cost or the cost of the inability of the lender to use the money they’re lending out.
- Amount of expected inflation (some title loans do hidden fees like balloon payments).
- Risk that the lender is unable to pay the loan back because of default.
- Length of time that the money is being lent.
- Possibility of government intervention on interest rates
- Liquidity of the loan
With that in mind, an interest rate is the numerical percentage of that charge on the principal payments. Now that you are up to speed with interest rate, the answer to this question may be easier to understand. Most car title loans will have a different interest rate, as well as other advantages that others may not have.
What should you do if you want to find car title loans with a good interest rate? Here at Max Cash Title Loans, we can give you the steps to take to find title loans that fit your interest rate expectations5.
How to Get a Good Interest Rate with Car Title Loans?
When looking for title loans with a good interest rate, here are steps to take on your search. After you read these steps, and you feel in your search for title loans, that’s great! However, if you find it difficult finding title loans, read on to hear how Max Cash Title Loans can help you:
Shop around
Just because one lender offers a certain rate, does not mean that all lenders will offer the same interest rate. Every borrower should do extensive research and find out every interest rate that they can get from multiple title loan lending companies.
It is also very important not to forget to factor all the relevant fees when it comes to comparing quotes (we will talk about hidden fees on the next step that could impact those quotes). Also, you should make sure you compare annual interest rates (not just the monthly ones) to get the clearest picture possible on what you will be paying.
Once you feel like you got the best fit all-around (keeping in mind and asking about any additional or hidden costs), then you could then feel free to move forward with the best lender of your choice.
Watch out for hidden fees
There are some hidden fees that you should be aware of that could be found in title loans that could impact your interest rate.
- Insurance fees
- Late penalties
- Balloon payments
- Prepayment fees
- Transaction fees
- Credit card convenience fees
- Credit report fees
- Appraisal fees
- Cost of your interest rate structure
- Origination fee
Before you contact a potential lender about their title loans that you ask questions about fees and other policies that may impact your calculations on your estimated title loan payments.
Understand your financial situation
Although car title loans are known to not require a perfect credit score, you should still keep your personal credit in mind. If you need longer terms so you can have smaller monthly payments, talk to your lender and work with them to figure out what is best for you both4.
Now that you have a good idea of what you need to do to find title loans with a good interest rate, maybe you see this as a lot of work and time that you do not have. Well then, why not ask someone to do the searching for you? That’s where you make the call to us, at Max Cash Title Loans.
How Max Cash Title Loans Wants to Help you Find Loans with a Great Interest Rate
With Max Cash Title Loans, we are a broker that bridges the gap between borrowers and car title loan lenders. We understand how important the interest rate is when looking for a car title loan, which is why we have multiple connections with lenders throughout the country.
We at Max Cash Title Loans are happy to help you in finding some choices for title loans that could fit your financial situation, and possibly offer a good interest rate. Call us or apply with Max Cash Title Loans today so we can help you search for your title loans today!