Oct 09, 2013

The Ultimate Guide to Comparing Car Title Loan Rates

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When you are considering taking out a car title loan, it is important to compare car title loan rates from various companies before making your final choice. You want to get the best deal possible, so plan some time to dedicate to doing your research. This will help you feel confident in your choice as well as allow you to fully understand the car title loan you are receiving.

The Ultimate Guide to Comparing Car Title Loan Rates

Some car title loan companies don’t have a good reputation, so it is important that you do your homework before committing to a long term loan. 

Car Title Loan Rates

Picking a company you trust will keep you from finding out about unfortunate small print details later on. Most companies claim to be the cheapest or the best, so you will need to do some digging to find out the facts.

Interest Rates

Always compare interest rates. Besides the actual balance of the loan, this is the most important figure to understand. It will determine how much more you will need to pay back on top of your original loan. A lot of car title loan companies charge a lot of interest, so pay attention to these rates. The lowest interest rate is always a better choice, but take into account other factors before you make your decision. Get Loan Approved offers low interest for our car title loan rates, usually around 5% per month.

Penalties for Early/Late Payments

Find out if there are any penalties for early repayment or any penalties for late payments. Shop around at different car title loan companies and discover the fine print of these details. Any company should be honest with you about these kinds of issues. Some companies charge a penalty if you pay off the balance of your loan early. Other companies will charge you a hefty late penalty if your monthly loan payment is even one day late. Get a good idea of what kind of restrictions you are signing up for before signing anything. Reasonable late monthly payment penalties are normal, but stay away from any early repayment penalties. They basically penalize you for paying off your loan early, which is always the goal for the consumer. Get Loan Approved will never penalize you for early repayment.

Where Does Your Car Go?

The basic ingredient of a car title loan is using your car as collateral. It is especially important to find out what companies require of you in relation to your car. Do they take your car? Do you get to keep it? What happens if you are late on a payment or are unable to pay back the loan in time? Since you have posted your car title as collateral, find out what the company can or may do with your car for the duration of the loan. Get Loan Approved always allows their customers to keep their car for the duration of their loan. That way you can continue getting to work and living your life.

If you take a little time to do your homework, you can make a confident and educated decision as you compare car title loan rates. Do yourself a favor and understand exactly what you are signing up for. If you have any questions, feel free to call Get Loan Approved for our professional advice.