What is a Title Loan?
A title loan is a type of secured loan that uses one of your assets as collateral.
There are two key benefits of a title loan.
First, the lender typically does not need to run a credit check so it will not effect your credit score or rating. This means that you can get a title loan even if there are problems in your credit history. Second, title loans tend to have more lenient application requirements, allowing you to receive the loan extremely quickly.
Since you can receive this type of loan more quickly (and do not even need a credit check to apply), you may be wondering what a lender gets out of offering title loans. There are two benefits for a company offering title loans. For one, a lender holds on to your car title as a security against defaulting on the loan. Second, title loan lenders can charge higher interest rates than traditional lenders.
Using a title loans calculator can help tremendously in making an informed decision about the right loan contract for you. A car title loan calculator is an efficient way to accurately appraise the overall cost of your loan. The benefits of using a title loan interest rate calculator include receiving real-time loan estimate and assessing a repayment schedule. Becoming knowledgeable about the process can help you achieve your financial goals over the life of the loan.
Title Pawn Calculator Instructions
Since one of the main perks of securing a title loan is to receive cash fast, using a title loan quote calculator should be no exception. The best title loan interest rate calculators are simple and straightforward to use.
- Step 1 – Type in your desired loan amount into the “Loan Amount” entry box.
- Step 2 – Choose an interest rate (you can find this interest rate percentage on the loan offer. This feature is a great way to compare offers from competitive lenders).
- Step 3 – Select your preferred repayment period (this is the length of time in months that you have to pay back your title loan).
- Step 4 – Click “Calculate” to see your estimated monthly payment results.
- Step 5 – Adjust your entries as needed until you determine a monthly payment schedule that is right for you. (For example, you may need to raise/lower your desired loan amount or lengthen/shorten your repayment period until you come up with a loan plan that fits your financial goals.)
An online loan calculator provides a snapshot of your loan estimate and monthly payments. You can also use it to calculate a full timeline and payment schedule. This information can help you determine whether a title loan is best for your financial needs. Once you decide on a title loan amount and payment schedule that works for you, inquire online with your estimate. You may also decide that a loan alternative is another solution to your financial situation.
Benefits of Calculating your Auto Equity Loan
The car equity loan calculator demystifies the repayment process for your car title loan. As you know, obtaining a car title loan is a popular option for those who need cash quickly and without a credit check. However, a loan also mean that you will need to pay the principal (loan amount) as well as interest. The loan calculator provides payment estimates so that you are not blindsided once you begin paying off your loan.
A loan calculator can also provide insight on the actual total cost of the loan. While it is great to receive your loan deposit very quickly, understanding your overall repayment costs can help you plan out your financial decisions over the life of the loan. For example, you can use the estimate to roughly budget your future payments so that the process goes smoothly. Finally, you can also use an auto equity loan calculator as a tool to compare offers from lenders. This strategy can maximize your chances of getting a good deal on your car title loan.
Comparing Lenders Using a Vehicle Equity Calculator
One of the top reasons for taking out a car equity loan is that you can receive the money quickly. While it is understandable that you may need your money fast, it is worth taking a few extra moments to compare your offers using a title loan estimator. With the calculator, you can type in the lender’s interest rate into the “monthly rate” section to compare estimate monthly payments for the company.
How Do I Find a Title Loan Lender’s Rate?
If you do not see the rate advertised, call or email the lender with a request for the numerical rate. Another option is to check with the Consumer Federation of America for the maximum allowable rate for car title loans in your state. Lenders cannot legally charge higher than the maximum allowable rate, so you can use this information to at least compare the maximum rate with other lenders who are more forthcoming with their customer service information.
Keep in mind that some lenders charge different rates for different customers. For example, a lender may advertise an extremely low rate – with fine print just below the advertisement. In other words, a borrower must “qualify” for this low rate…with a credit check. Some borrowers believe this marketing strategy is disingenuous since the value of your automobile is the actual collateral for a car title loan (and has nothing to do with your credit score).
Calculators vs. Title Loan Quotes
An estimate calculator is the best way to empower and inform yourself about the loan repayment process. Even upon request, a complete and accurate “title loan quote” can be very difficult to obtain from a lender. The simple reason is that lenders are simply not required to provide them. Since the industry is less stringent and far less regulated than other industries, not all lenders bother to respond to customer service questions.
With this, you can input your desired loan amount and term to receive an accurate estimate within seconds. From here, you can use this information to ensure that you meet the other requirements for your title loan.
The Best Car Equity Quote Features
A car equity quote is a fast way to get a snapshot of your potential loan before making any decisions. The calculator lets you get a good idea of expected monthly payments, monthly interest rate, annual percentage rate (APR), and total repayment schedule. This transparency can help you find loans with lower interest rates or lower monthly payments for a more manageable loan term.
The most useful title loan estimate features include the following:
- Easy-to-calculate interest rate
- Fast loan quotes to compare other offers
- Estimated repayment period to make future plans with ease
- Snapshot of full repayment schedule
- Comparison tool for different loan amounts and terms
- Mix-and-match the right loan amount and term length that works best for your budget
Registration Loan Interest Rate Assessment Tool
Most people understand that when you borrow a loan amount, you have to pay it back. This loan amount is called the principal amount.
However, many individuals struggle with how to determine the amount of interest that a loan can cost over time. Think of interest as the “fee” that a lender charges for paying the principal back over time. A title pawn calculator takes the mystery out of interest payments so that you can an informed decision before signing your loan terms.
Some title loans are single payment loans. This means that you need to pay in full at the end of the loan term to avoid any problems. Your payment amount includes the principal, lump interest, and any fees. This type of loan is only available in certain locations, and the loan period is very short (usually around 30 days).
The more common type of car title loan, however, is the monthly term loan. This type of loan calculates minimum monthly payments (including interest) so that you can pay your loan back over time (called a term length). Of course, you can make larger payments or pay the full amount early if you wish, but you must pay at least the minimum monthly payment to avoid extra interest charges or defaulting on your loan.
Interest Rates Results
A key benefit of a title loan estimate calculator is that it does not just provide a single “estimate” or “percentage.” Instead, the calculator breaks down how you will pay your interest over time. To illustrate this, consider the fact that in order to enable minimum monthly payments, monthly term loans are amortized. This means that a lender uses an accounting technique to divide the repayment process into equal monthly payments. So, you can see how a company offering a lower interest rate may result in lower payments – even if the principal (amount borrowed) is the same for both companies. In this way, a title loan quote calculation is a practical way to show how repayments will actually fit into your monthly budget (rather than just showing an abstract percentage that may not feel relatable to your everyday life).
Pink Slip Loan Calculator: Monthly Interest Rate vs. Annual Percentage Rate (APR)
Some borrowers also confuse monthly interest rate with annual percentage rate (APR). When using a pink slip loan estimate device to compare companies, you must compare the right type of interest. This means that if you input the monthly interest rate for Company A, you must also input monthly interest rate for Company B. (Do not attempt to compare the monthly interest rate for Company A to the annual percentage rate of Company B – this would be like comparing “apples to oranges.”)
If it makes it easier, most title loan companies advertise the monthly interest rate. (In contrast, most credit card companies advertise the annual percentage rate/APR.) And you can always convert APR to monthly by dividing it by 12 (or convert monthly to APR by multiplying by 12). Finally, you can simply use an APR to monthly interest rate online converter to make sure the numbers are correct every time.
How to Save Money on Title Loan Interest
The best way to save money on interest is to pay more than the minimum monthly payment whenever possible. With amortization, the money that you paid in addition to your minimum payment goes into your principal payment instead. This lowers the principal balance you owe (which then lowers the interest accrued for your next payment due). It is also important to note that the higher your interest rate, the more important it is to pay more than the minimum whenever you can.
Rate/Payment Calculators and Finding the Best Title Loan Company
Finally, a title loan payment calculator is also a reminder of how to choose the best title loan companies. Credible title loan companies provide interest rates when asked. If a company outright refuses or switches the rate when you apply, it is probably best to find another company. The car equity loan payment calculator is a valuable tool for comparing as many companies as you wish.
If you are very interested in a company, do not hesitate to get a full copy of the loan terms. (You will need to sign the last page of the terms either way before receiving the loan money.) Read through the terms and use the title max loan calculator to compare any numbers as needed. Keeping your auto title loan estimate handy provides reassurance about the type of loan and how it impacts your budget until repaid.