How To Acquire The Best Car Title Loan DealFast Action Finance
Be an informed consumer if you want to find the best car title loan rates. Just like the price of any other product you are purchasing, title loan rates are negotiable. You however need to know that your credit score will determine the rate you will be offered by the lender and the rates that are available to borrowers that are within the said credit score range. How do you about getting the best title loan rates in the market today? Well, read to find out!
Prior to going to a lender for a title loan, some research will be in order so as to get the best of the available rates. The best loan shopping and research option is through the net. There are numerous financial websites that allow prospective customers to enter their details so as to enable them to narrow down their research on the types of loan deals they are looking for. Apart from the traditional online loan lenders, there are many others in the business today and that can also be opted for. All in all, banks, mortgage and loan firms, banks, reputable online lenders and the likes are some of the best places to call and ask for the best title loan rates.
2.Go for a lender with the best possible rates
Though important, it is good to note that the lowest car title loan rate does not always ensure the lowest car payment and for a good reason. The length of the loan term has either a positive or a negative impact on the amount you are supposed to pay on a monthly basis. Simply put, a shorter loan term almost always has a lower rate; however, it costs more on a monthly basis. Though longer term title loans have slightly higher rates, they have lower monthly payments.
A down payment normally affects the rate of a loan, title loans included. Because it also decreases the financed amount and thus the accrued interest, it also significantly reduces the lifetime amount of money paid on the car.
How should a consumer view a title loan?
The majority of title loan providers emphasize that their product be viewed as emergency loan type and not a long term product. In simple terms, a car title loan needs to be viewed as a great way to secure cash for unexpected financial needs, for example, unexpected repairs or for handling some sort of temporary requirements. Because title loans are written as short term loans, their repayment period is normally within 30 days or so. If calculated on an annual basis, it is not unusual for the applied rate to be in triple digits.
In conclusion, the majority of car title loans provide a full disclosure to the customers prior to completing the loan application. Others offer just the minimum as is required by law. This being the case, consumers who are dire need of cash often fail to read the fine prints and thus commit themselves to loan arrangement that they may or may not be able to pay back in a timely manner. In any case, look for a loan deal and rates you will be comfortable with or paying off within the stipulated term.