To put simply, interest rates are the percentage of principal charged by the lender for the use of their money. For those not aware of what interest is, it is the additional charge that comes from the privilege of borrowing money from a loan, which is expressed as an annual percentage rate.
The Types of Interest Associated with Car Title Loan Loans
When it comes car title loans there are generally two types of interest rates to pay attention to:
- Monthly Percentage Rate – The MPR will be charged every month.
- Annual Percentage Rate – The APR is the amount of interest for the year, it should equal whatever the total MPR is for the year.
APR (annual percentage rates) is the interest rate based on a yearly total. For example, if you had a 29% interest rate and you borrowed $5,000, then your yearly interest would be $1,450 ($5,000 x 29%).
Now for the real kicker: Companies that offer auto title loans typically have high interest rates on them. They can go from 29% (lowest we have seen) to 200-300%. Average is about 87% to 97% APR. Because of this, interest rates for this can look freaky high to a consumer, so most auto title loan companies break that number down to an MPR (monthly percentage rates).
To understand how interest rates are applied on an auto title loan, we must look at how the MPR is applied. Not all months have the same amount of days in it. One has 28 days while others 31 days. If interest rates are monthly, then you would need to do this math:
Let’s say you have a $5000 loan at 8% MPR. The month we will use is February, which has 28 days. If you had a loan balance of $5000 then each day in interest for February is approximately $13-14 a day. In a year, that would equal $4745 in interest.
Now let’s say you had the loan out for 2 weeks. That would be $189 to borrow $5000 and that’s not so bad at all for getting money, sometimes in hours1.
Max Cash® Title Loans: We Look for the Best Interest Rates on Title Loans!
At Max Cash Title Loans, experience counts, especially when it comes to the best interest rates on an auto title loan. From refinancing a car title loan for better payments or interest rates, or getting a new car title loan, we are here as your one-stop shop!
Max Cash Title Loans is open 7 days a week. We open very early and stay way past normal late hours. We know that you may need to get help at any time and you need answers right away. Sometimes our phones are busy, and you may be on hold for a few minutes while other times we pick up the phone in seconds. We don’t rush our calls or cherry pick. You tell us your needs and we use our power and information to tell you if it is possible to get a loan and what you need even when the lenders themselves are closed.
Here at Max Cash Title Loans, we created our business around you to give you a better option for your auto title loan needs. We have re-defined the lending process and made it much easier for you to get your loan5. We take the guess work out of who a quality auto title loan lender is and know that interest rates really do make a difference.
We have simplified the process of getting a title loan nationwide. We have done the research and hard work for you and have found the better lenders with great title loan deals. Use our network and let us prove to you that getting a title loan through Max Cash Title Loans is the better option!
Why Is the Interest on Car Title Loans So High?
Interest rates on car title loans could be extremely high. Interest rates on car title loans may range from an average of 200% to 300%. Compared to traditional loans, whose average interest rate ranges from 5% to 30%. Car title loans may have a higher interest rate when compared to traditional loans, but there are a few reasons for this:
- They may disregard bad credit or bad credit history5
- Car title loans are usually shorter (typically between 15 to 30 days)
- Title loans may be a high risk for lenders
The Best Way to Navigate a Car Title Loan in Terms of Interest
Interest builds up monthly and annually. Sometimes loans have a fixed date, while other times there may not be a specific date to pay back the loan. Some lenders even allow for rollovers, meaning if a borrower is not able to pay back the loan for the month, they could pay a fee to extend the due date.
A good thing to remember when it comes to loan interest is that generally the longer it takes to pay back the loan, the more interest will accumulate. Paying back the loan as quickly as possible could save a person thousands of dollars. Comparing lenders may help you find the best repayment plan to keep the accumulated interest low. In addition, drawing comparisons may help you find the best terms fit for your unique situation.
How to Get the Best Interest Rate for a Car Title Loan?
A good way to ensure receiving the best interest rate on a car title loan is by comparing several lenders. Each lender works differently, and some may have offer better interest rates than others. It may be helpful to know that monthly income may impact the amount of interest on a car title loan.
At Max Cash Title Loans, we are a free loan processing service that connects people with reputable lenders. At Max Cash Title Loans, we filter through hundreds of lenders to find the one that offers the best interest rate.4
Max Cash Title Loans Advantage
Clients are able to receive numerous benefits by working with Max Cash Title Loans in pursuit of a title loan. We provide so much more than just loan assistance. Take a look below.
- Fast Pre-Approval: Our decade of experience means we have become adept at determining eligibility. After going over a client’s inquiry information, we are able to make a pre-approval decision. This allows for a quicker process.
- Low Credit or Past Bankruptcy5: Max Cash Title Loans has helped individuals with all kinds of credit ratings. We understand that a person’s past financial discrepancies do not necessarily reflect their current financial status. Which is why we are more than willing to work with clients that have low credit ratings or past bankruptcy. So if a client has either, we still encourage them to apply with Max Cash Title Loans.
- Receive Funding Same Day: Due to our quick process, and connections to lenders throughout the nation, it’s possible for clients receive emergency funding the same day as applying, or by the next business day.
- Same Day Service: Our extended business hours and days of operation allow us to provide same day service. We are open most hours of the day, but if we happen to miss a client’s inquiry, we’ll be sure to respond bright and early the following day when able.
- No Pre-Payment Penalties: Paying off a loan early should be rewarded, not cause for a fine. A lot of lenders will fine clients for paying loans off early or simply making early payments. They do this because they don’t want to lose money. Interest is how lenders amass profit, so if a loan is paid early, not as much interest is collected. Max Cash Title Loans works with lenders that do not fine clients for early payments, so we encourage clients to pay their loan off as quickly as they are able.
Max Cash Title Loans wants to make acquiring a loan as simple as possible. That’s why we prefer to do the bulk of the work for clients. We offer our services for free, and we don’t hold our clients to anything.
If upon reading this an inquirer would like to apply with Max Cash Title Loans, we encourage them to view our process below.
Max Cash Title Loans Inquiry Process
Getting started with Max Cash Title Loans is easy. We’re proud of our fast process, and hope to help as many people as we can. So far, we have been able to help over 400,000 clients obtain the emergency funding they needed in a crisis.5 We may be able to help you too, so take a look at our process below:
- Inquiry
To start off on the right foot, compete and submit the Max Cash Title Loans questionnaire located on our main homepage. The form is short, we simply ask for your name, contact information, monthly income, and vehicle details like make, model, and mileage. - Approval
Once we receive a client’s information, we make an initial call to establish contact. We verify a client’s information and ask any additional questions if anything needs to be cleared up. - Research
After verifying a client’s information, we call lenders and start searching for compatible title loans. We ask questions, ask for better rates, and make loan offer comparisons. - Loan Offers
After our thorough research, we may be able to acquire loan offers for the client.5 Once we perform comparisons, we present the most compatible loan offer to the client. After reviewing the loan details, a client could decide to proceed with a loan offer.
Becoming a Borrower
If a client does decide to move forward with a title loan presented from Max Cash Title Loans, we connect them to the lender. The loan process is then handled directly with the title loan company, not Max Cash Title Loans.
And that’s all! Finding a title loan with Max Cash Title Loans is simple and stress-free. We make sure to provide our clients with affordable rates and reasonable terms. So contact us today!
Call Us To Run Through Your Options!
We are not your lender. We are not going to get you in trouble. What we can do is go over options to get that loan paid off by another lender or even call your current lender and get the one you have right now redone so it works. Don’t be afraid. We help people in this situation effortlessly. 855-561-5626 and ask the loan processor about refinancing your loan and be honest. If you’re not sure where to begin, or how to find a lender, the customer service representatives at Max Cash Title Loans are standing by to help you get started.