Many people in Arizona choose to get a registration loan because they are very similar to payday loans. Since you cannot get a payday loan in Arizona, some people think a registration loan is a good alternative.
Do you know what a registration loan is? A registration loan is a way to use your vehicle’s registration as collateral, so you can borrow money. With a registration loan, you do not have to provide a qualifying vehicle title in order to receive approval for the loan. Typically, all that is required to receive approval for a registration loan is to simply be in possession of your vehicle’s registration.
This is why many people in Arizona think registration loans are a good idea, but these people might not be aware of the secret strings that come with a registration loan. Since registration loans are very similar to payday loans, the borrower usually has to pay off the balance of the registration loan in full the next time they receive a paycheck from their job. If the loan balance is not paid off in an extremely short period of time, astronomically high interest rates could cause your registration loan balance to skyrocket.
An auto title loan may be a better choice for you. LoanMart can offer you a quality auto title loan with competitive interest rates and convenient terms1! Why deal with the hassles that can come with a registration loan when you can come to LoanMart and enjoy quality service and fantastic perks with auto title loans?
How to Pay Off a Title Loan
The best way to avoid paying more interest than you have to is to try to chip away at your title loan balance. Here are some tips for what you can do to pay off your LoanMart car title loan even faster.
- Get a second job
If you have the time at night or on the weekends, try getting a second job. There are even many online part-time positions available, so you can make money and not have to leave your house! When you use extra money from a second job to pay off your car title loan, you don’t have to use the money that comes from the paycheck of your full-time job.
- Take advantage of your LoanMart benefits
LoanMart Texas title loans come with many perks, and you should know what they all are! Remember when we talked about the sky-high interest rates that come with registration loans? Well, LoanMart solves that issue because we offer competitive rates. With the competitive rates at LoanMart, you can see your title loan balance go DOWN instead of up, when you make your monthly installments. Other lenders might stick you with interest rates so high that your balance actually goes up, even though you are making payments.
- Make bigger payments when you can
When you make larger monthly installments than is required, you will end up paying less money in interest on your overall title loan balance. Paying just a bit extra each month will start to add up after a while, and before you know it your title loan balance can be paid off! If you contribute enough extra funding towards paying off your auto title loan balance, you can potentially knock off several months of installments that would have been left to pay if you had not put any money forward.
- Sign up for auto-pay
Sometimes when life gets busy, due dates on bills or payments can sneak by. We’ve all been hit with a late fee before, whether it’s an overdue library book or a past-due bill, it can be frustrating when we don’t do things on time. But when you are trying to pay off your loan balance as soon as possible, missing payments can set you back. Sign up for auto-pay so you are never late on a payment. When you keep up with your monthly installments you won’t acquire any late fees or any additional interest to your balance.