| Are you interested in getting a car title loan? Then it is important for you to know some key things if you want to get the best out of the loans. Car Title Loans have been in existence for a very long time now, and they have helped so many people deal with financial crisis and cope with emergencies. Getting a car title loan is pretty easy, and the process is easy to follow.
Here are some of the things you should take into consideration when getting a car title loan:
Repaying the Loan
Most car title loans are short-term loans, which are due within 30 days. Therefore, you must be able to raise the money to pay for the loan within the shortest possible period. This is often referred to as balloon payment. Depending on where you are getting the loan from, repayment can be extended or the loan rolled over.
Rolling Over
This is a strategy that is often used, especially in cases where it may not be possible to pay the loan. You can opt for a new loan rather than paying off the loan. However, this can be expensive, and if you are not careful, repayment will become extremely difficult. In some states, there is a limit to the rolling over options.
Interest Rates
This is a common thing with all the different types of loans. For most car title loans, the lender usually charges between 25% and 50% monthly interest. This is something you should consider before opting for a car title loan. Some car title loans can span for as long as one year, in which the annual percentage rate can be as high as 300%. The interest rate is a factor you must never overlook when getting a car title loan.
Total Costs to Borrow
The costs of title loans are usually on the high side. This is because of the high-interest rates and the tendency that you might have to pay with your credit card. As mentioned earlier, there is often a limit placed by most state laws, even though those limits are also on the high side. Also, fees are paid to get title loans. These fees will also increase the cost of borrowing.
The fees are often referred to as interest, and it is important to consider these fees before you get a car title loan.
There are so many other interesting things about car title loans. What\'s certain is that these loans will come in handy for you whenever you are financially stranded, and they will also help you pay emergency bills and more. Use your car now to get out of these financial emergencies. |
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