Car title loans may be ideal for people who need a good amount of money quickly and are automobile owners. The process is very straightforward and a lot less complicated compared to many traditional loans, bank loans, and other loans.
But just like any other loan, car title loans also come with interest – and rightly so. While lenders generally tend to make the loan service as light as possible for the loan applicant, interest is necessary to ensure that the lending business stays afloat and available for those in need. Not all lenders are the same though, because some tend to really make a killing by slapping on very high interest loans that end up being overly burdensome to the unassuming loan applicant. This is why it is important to know all that you can about loan interest rates. The more you know, the more empowered you will feel about it – and the easier it will be for you to go ahead with the car title loan!
The great thing about taking out a loan through LoanMart is that they are a highly competitive – meaning their primary focus is on ensuring that their customers have enough options to find one that suits them the most. Each loan is computed until it works out for the customer and that the monthly amounts are not burdensome.
Of course, the borrowing rules for a car title loan will differ in the different states where LoanMart currently operates. For as long as your car title is registered in any of the states that LoanMart services and you have the ability to repay your loan, you may be able to get approved for the loan amount and receive your money in as short a time as the following business day1, 3.
As such, interest rates will differ depending on the state where you reside and the agreed terms between LoanMart and yourself. Apart from the state where you live, there are other factors that will have an effect on the interest. One is if you make your monthly payments on time, every time. If you fail to accomplish this, you can end up paying higher the following months.
Some people get taken aback upon seeing the total of payments amount, but the truth is it’s a normal rate as far as most loans go – even a bit smaller compared to other types of loans. What should be understood here is that the total amount is divided across the payment period so it’s manageable for the person who applied for the loan in the first place. For people who need money with some urgency, this is something that they can likely live with after weighing the pros and cons of not being able to meet their unexpected financial obligation.
A car title loan certainly is much better than other loans like a payday loan, for example. Payday loans are also short-term loans like car title loans, although the maximum loan amount (something in the $300 range) is a lot smaller than what you can get with a car title loan. This short-term loan needs to be completely paid back in full within 31 days, which can be deducted from your next payday. In contrast, car title loans are more generous in terms of loan amounts (up to several thousand dollars) and the amount can be paid back over the course of a much longer period. The payday loan is like a Band-Aid fix, while a car title loan is more for people who require a longer time in fulfilling their financial needs.