If you need money fast, then Texas title loans may be the answer to your financial prayers. However, with so many different lenders competing for customers, it can be difficult to know who will offer you the lowest rates and fees. Fortunately, our tips will help you find the lender that is right for you. Before getting into specifics on how to get the lowest interest rate on a Texas title loan, let’s take a closer look at how this type of loan works.
What is a Texas Title Loan?
A Texas title loan is a short-term loan that allows you to borrow money from the seller of your car or truck. You use the loan to pay for vehicle purchases like repairs, new tires, and car seats. Once the loan is repaid, the lender releases the title to your vehicle. This means that you own the car or truck as well as the loan. You can use a Texas title loan to purchase a car or truck with or without a car loan. If you use a Texas car title loan to repay other loans like credit cards, it can increase your interest rate. Unlike a traditional car loan, a Texas title loan does not require a down payment. The loan amount is determined by the interest rate and the length of the loan.
How Does a Texas Title Loan Work?
You sign a promissory note, or give a money lender a lien on the title to your car. The loan paperwork states the amount you’re borrowing and the interest rate, which is usually very high. You pay back the note plus interest over the course of the loan. If you don’t pay back the entire amount plus interest, the lender takes the car and sells it to get the remaining amount. If you’re upside-down on your loan, or have an impound, you have to make extra payments to get out of the negative position. If you make extra payments, the lender may let you out of the negative position. If you default on your loan, you lose the car and may have to pay the full amount that you borrowed plus interest plus fees.
Compare Texas Title Loans: Find the Best Rate Before you Apply
When searching for the right title loans in Texas, the first thing you should do is find a few different lenders and then compare their rates and terms. If you can find a few lenders that have similar terms and interest rates (and don’t charge any application fees), you’ll have a better idea of which lender has the best deal for you. If you do have to pay an application fee, it’s a good idea to ask the lender to waive it. Once you’ve found several lenders, compare their rates and fees. You can make this comparison online (or using a search engine) or by comparing rates on paper. You’ll want to look at the following aspects of each loan:
The 3 Things to Look For When Selecting a Texas Title Loan
When comparing Texas title loans, there are three things you should look for: The loan amount: Texas title loans are often very short-term (one month or less). In fact, many of them are classified as “installment loans” which means you’ll have to pay a portion of the loan (like a traditional credit card) each month.
The amount you borrow: As with any loan, the amount you borrow will have an impact on the overall cost of your loan. Smaller loans will cost you less in interest.
The interest rate: While the amount you borrow and the length of the loan have an impact on your overall cost, the interest rate is what makes up the majority of the cost of your loan. If you can find a lender that offers a low interest rate, you’ll save a significant amount of money.
Summing up
A Title loan offers you flexible terms, flexible repayment schedules, no credit checks and no bank reputation damage. These tips will help you find the lender that is right for you. So if you need quick cash, then getting a Texas title loan is the answer to your financial prayers.
