Title loans are the short-term loans that a lender issue to the borrowers taking their vehicle’s title as collateral. After the lender evaluates the cost of your vehicle, he decides what percentage of its value he can lend you. Usually, the sum makes up 25% to 50% of the car’s value.
A low-interest title loan is often compared to the payday one. Both loans offer a relatively small amount of money, high interest, non-beneficial loan term, and bold collective measures.
Still, the title loans are less aggressive in all aforementioned senses. For instance, the 300% of APR that you will pay for a title loan, will cost you a minimum 400% for a payday loan.
Furthermore, the low interest auto title loan balance tends to be larger than a payday one. Sometimes borrowers qualify for $10,000 loan amount. The loan term is usually 30 days. The average interest rate is 25% or higher. The average APR is 300%.
If you don’t manage to pay off the debt on time, the lender will offer you to consolidate it into the new one with a 30 days loan term. Don’t be so enthusiastic about it because sometimes the consolidated debt will cost you more (don’t forget about the large penalty charge). If you fail again, the lender will sell your vehicle to cover the debt.
If you want to know about Longview Texas title loan low interest, you can check out this reviewing service where borrowers share their experience and evaluation of the top companies. Here you can get information about 30 Lexington low interest title loan companies. Still, talk with the lender and check out the documentation before signing the contract.