In order to get a cheap title car loan, it’s important to bear certain things in mind. A car title loan is an easily acquired loan given by financial institutions, mostly bad credit loan lenders or title loan companies, to persons who give the title of their car as security against the loan. The interest rates for such loans generally vary from 30 percent to 300 percent. These loans are short-term and have to be paid within 30 days. If unpaid, they may be renewed or the lender might repossess the car, if the loan cannot be renewed. It’s thus best to make note of certain tips.
Research every possible source for the car loan. Check at least 5 title loan companies to get the best deal. Take the car, spare keys, your monthly income statement, and the title of the car to various companies to get a good rate. It’s also important to find out the requirements to get the loan. Ask about the loan amount, the payment amount, and how much of the payment would go towards repaying the principal.
Act quickly and make small payments throughout the month to reduce the principal. On no account, should you get behind on the interest. This will ensure you pay off the loan on time and retain possession of your car.
Lower Interest Rates
If you have recently lost your job or gone through a divorce, the title loan company might be more understanding and offer a loan at a lower interest rate, so advise them of the same. In addition, there are different types of bad credit finance loans and the institution would be able to suggest one best suited to you. It’s also important to remember that the interest rate would be dependent on the condition of the car and your current income.
It’s necessary to be sure you have enough money coming in within 30 days to repay the loan, as a title car loan should be your last option, and this ought to be paid off at the earliest.