If you’re searching for a car title loan, the interest rates offered will likely make an impact on your choice. Interest on title loans is dependent on several factors and circumstances. Since interest rates can make or break your loan experience, choosing the right loan and lender are important for your financial well-being!
Finding a title loan option with competitive interest rates should not be a hassle. ChoiceCash Title Loans serviced by LoanMart gives borrowers the financial help they need with the competitive rates they are looking for!1 2
What Do I Need to Know about Interest on Title Loans?
Educating yourself about the ins and outs of interest on title loans can help your wallet in the long run. Interest and interest rates can be difficult to understand for the average consumer, which could lead to some borrowers signing up for loans with high interest rates.
For your financial well-being, it is important to stay informed about the financial terms that are associated with taking out a loan. Interest is simply the cost of borrowing money. This cost could be only once upfront, or it could be a repeated fee depending on your loan agreement. Usually, interest is only paid when you take out a loan from a bank, credit union, lender, or another type of financial institution.
Title loans can be amortized loans, meaning that a borrower will have a set of scheduled payments over time. Each monthly payment will include the principal of the loan and the interest charges. The principal amount is the original loan amount, and the interest is the money that is charged by the lender for borrowing that principle. The rate of interest is the percentage that is charged by the lender. The interest rates can vary depending on the type of loan and lender that you choose.
Typically, amortized loans are an ideal way to pay back your loan if you plan on having more time to repay it. Amortization allows you to pay both the principal and the interest at the same time! In comparison to other types of payment plans for loans, an amortized payment schedule can help save you money over time.2
What is the Average Interest Rate for Title Loans?
The average interest rate for a title loan will vary depending on a few factors:
- The Source of the Loan
- Your State
- The Value of Your Collateral
- Your Credit History
- The Length of Your Loan Term
The lender or loan option that you receive your loan from could affect your offered interest rates. Depending on the state you live in, the interest rates could be regulated by state laws as well. Some states will regulate the length of your loan terms as well as how much you will be able to borrow through a title loan.
Typically, title loans can have more competitive interest rates because they are secured loans. Many borrowers that are not secure with their credit history will use non-traditional forms of lending like title loans to obtain funding. Title loans are often more flexible in the approval process because they are secured loans as well!1
During the approval process for a title loan, your collateral is what secures your funding. The value of your collateral will be one of the factors that determine your loan amount, and the interest rates you are offered. The higher valued your collateral is, the higher your loan amount can potentially be and the lower your interest rates could be.
The length of your loan term will also affect your interest rate. When you sign your loan contract, a loan agent will break down how the interest will be paid throughout your loan. If the loan is a title loan that is amortized, the interest and the principal will be paid off concurrently.
What is the Interest on Title Loans if I Have Bad Credit?
If you’ve had financial difficulties in the past, you may not be confident with your credit history. Many traditional forms of lending will turn you away if you do not have a very good credit score.
With a title loan, however, the situation is different. Title loans are popular among those with bad credit because the approval process is so flexible! Borrowers from all different types of credit histories can apply.1 Since title loans are secured through collateral, a borrower’s credit history is not the most important part of the approval process.1
While interest on title loans is dependent on a borrower’s credit history, approval is not. During the approval process, a lender will look at:
- The Borrower’s Collateral Value
- The Borrower’s Monthly Income
Usually, they will also look at their income-to-debt ratio to determine eligibility as well. Even if you are not confident with your credit history, you can still apply for a title loan!
Who Qualifies for a Car Title Loan?
People from all different financial backgrounds are welcome to apply for a title loan. Like many loans, however, there are a few requirements you will need to meet before you can apply! Depending on the state you reside in, there may be more requirements than others.
When you apply for a title loan, you can expect these requirements:
- Applicants Must be at Least 18 Years of Age or Older
- Applicants must have a Vehicle with Significant Equity
- Applicants Must Have A Steady Source of Income
In all states, you will need to be of age to apply for any type of loan. A loan is a big financial decision, and the law protects borrowers from applying before they are ready to make that commitment financially. To apply for a car title loan, your vehicle must have a certain amount of value. This is because your car will be collateral for the loan. The more value your vehicle has, the more you may potentially be able to borrow through a loan.1 If you aren’t certain what your vehicle is worth, there is an online tool you can use! ChoiceCash Title Loans serviced by LoanMart offers borrowers an online title loan calculator. With this tool, you will be able to see a snapshot of your car’s equity and get a free title loan quote.1
All borrowers must have a source of income to apply for a loan, and their debt must not be too high as well. During the approval process, a loan agent will look at a borrower’s income-to-debt ratio. While you do not need a 9-5 to apply for a title loan, you will need some form of monthly revenue. This could be Social Security payments, disability awards, or even self-employment!
What are the Benefits of an Auto Title Loan?
While there are many different loan options out there, title loans are a popular loan choice across the nation. The competitive interest on title loans is just one of the few reasons why title loans are popular!
If you are a borrower looking for fast and convenient funding, you need to look no further than ChoiceCash Title Loans serviced by LoanMart.1
In addition to convenience and competitive interest rates, borrowers can also take advantage of these title loan benefits:
- A Faster Way to Get Your Cash: If you’re facing a financial emergency and you need cash fast, a title loan can be the right way to get your funds. Borrowers that choose ChoiceCash Title Loans for funding can get their cash in as little as one business day if they qualify!1 Simply use the title loan calculator online and answer a few questions to get a free quote in just a few minutes.1
- Keep Your Keys: Understandably, you want to know the whereabouts of your vehicle while you pay off your loan. Borrowers that make consistent, on-time payments to their loan can keep their keys and drive their car like they normally would!
- Easy Inquiry Process: It can take just a few minutes to apply for a ChoiceCash Title Loan! Borrowers can choose to apply online or over the phone with a representative from the comfort of their couch by calling 855-422-7402!
Where Can I Apply for a Car Title Loan Online?
If you are like most borrowers, the convenience of applying for a loan online is a necessity. With ChoiceCash Title Loans serviced by LoanMart, borrowers can apply in just three simple steps:
- Call or Click Online
- Send in a Few Documents
- Get Approved and Get Your Cash!
Applying for a title loan shouldn’t be a hassle. If you need competitive interest on title loans, apply with ChoiceCash Title Loans today!1 Head over to this fast and simple title loan inquiry form to answer a few questions about your vehicle to get prequalified.1 Or give a loan representative a call at 855-422-7402. You could get your cash in as little as 24 hours if you qualify!1