Check Out The 4 Astonishing Facts About Title Loans
If you are getting a title loan, you must know everything about a title loan before availing it. If you are getting a title loan, there could be a little risk of losing your car. Therefore, it is essential to pay all the installments of the title loan on time to avoid risk to your vehicle. If you are thinking of getting a title loan, consider checking Florida Car Title Loans for reliability and assurity.
- The Average APR Of Title Loans
If we talk about the average annual percentage rate of a title loan, it is 300%. It is maximum compared to any other loan; this means you have to pay three times your original loan. If a person borrows this loan for a year, then the annual percentage rate would be three times the loan amount that people have to pay 25% interest on their monthly installment. Not everybody could afford this huge amount of interest and end up losing their cars.
- Average Ratio Of People Who Lose Their Car In Title Loans
It has been seen that around one customer in every five customers losses their car due to not proper payment of the loan. In such a situation, the person has to give the car away in turn of the loan they could not pay completely. As one out of every five people a losing their car, it is a huge ratio. This is because the interest rate of the title loans is too high, and people do not consider checking it in the beginning.
- States Where Title Loan Is Banned
There are many states where the government banned title loans due to its very high annual percentage rate. There are 25 States where the loan is banned by the government, as it was not beneficial for people at all. Most people have lost their vehicles due to the high-interest rates. Sooner or later, many states understood that title loan is not as beneficial as it seems to be.
- Short Term Title Loans
If we talk about short-term title loans, these loans do not come with an easy repayment scheme. These are usually considered 30 days loans that need to be paid back in a month. Many people cannot afford this huge amount at all and require small installments to easily repay the loan. In such a situation, many customers have to refinance the loan to save their car. But refinancing is not a solution at all, as it increases the burden on the loan taker.
These were some of the less known facts about title loans and the terms and conditions. Consider going through the article before you decide to go for a title loan. Remember, if you require the instant help of money for a small period, then only the title loan is beneficial. Otherwise, it is considered good to go for personal loans or other bank loans.