Compared to some other types of loans such as mortgages, equity loans, or credit cards car title loans may have somewhat higher interest rates. There are multiple factors that determine the rate of a loan product. Usually, the amount of risk that the lender is deemed to incur plays a large role in determining an interest rate. Title loans can be slightly riskier for a lender which leads to somewhat higher rates than the loan products mentioned above.
Some factors that lead to such higher rates are: no credit check, short term loans, convenience, minimal paperwork, approval with bad credit or no credit, etc. Just as a gallon of milk costs more at the convenience store than the grocery store, the interest rate on a loan obtained in 1 hour is greater than that of one that takes 2 weeks for approval. Car title loans are easy to apply for and get approved regardless of an individual's credit score and credit history.
Even though title loans may have higher interest rates than a standard bank loan, all title loans and title loan companies are not created equally. You can take some simple steps to save money and ensure that you obtain a title loan with the best possible rate. Below are some tips to help you obtain the best possible rate on a car title loan when you are in need of quick cash. Follow these simple steps to make sure you get the lowest rate, lowest payments, and best terms on car title loans in your area.
Tips on Getting the Lowest Rate on a Title Loan
- Come Prepared
- Arrive at the lender's office with the required information.
- Clean/Maintain Your Vehicle
- Remember, your loan amount is based off the condition and value of your vehicle. Therefore, arriving with your vehicle in tip top shape will increase the value in the lender's eyes and help you to get approved for a higher loan amount.
- Find a Licensed, Reputable Lender
- All title loan companies are NOT created equally and you will be placing your vehicle as collateral for the loan. Do your homework and find lenders who are properly licensed and avoid online and fly by night operators.
- Shop Around
- As with any loan, compare terms and rates for a couple different lenders to find the best rate and term. Remember the ask the lender what the APR (Annual Percentage Rage) that they charge is and be careful of lenders who try to quote you a "monthly rate." Quoting rate as a "monthly rate" is actually illegal and all rates should be quoted using APR. BE SURE TO CLARIFY THIS!
We have been helping folks get the cash they need at the best rates for years. We pride ourselves on upholding the highest standards in the industry. American Auto Title Loan is fully licensed and state and federal law compliant. We have an excellent track record and would love the opportunity to show you the American Auto Title Loan difference! Apply online to see how much you may qualify for. We'll have one of our highly trained title loan specialists give you a call immediately to discuss your individual title loan needs.