When we think of different ways to add value to our vehicle, the car title loans become a viable and positive option to achieve a better budget and financial growth, simply by using assets that increase in value annually. This is what this initiative is about, and we’re about to know some important aspects of this business that over time has sold growing and increasing its functionality exponentially in the industry by helping and bringing fast solutions to all users and costumers.
CAR TITLE LOANS: PRICES AND BUDGET
On average, lenders usually apply 25 percent monthly to finance the loan. This means an annual percentage rate of at least 300 percent. And depending on the additional charges that the lender may require, the rate could be even higher. For example, if you take out a loan for $ 500 over a period of 30 days, on average you may have to pay $ 125 plus $ 500 of the original loan amount – $ 625 plus additional charges – within 30 days of receiving the loan. This is a simple way to recognize that car title loans are an expensive tool that requires a lot of work to make this process a safer and productive.
CAR TITLE LOANS: PAYMENT OPTIONS
Generally, you have three payment options: in person, through an online system or through an automatic reimbursement system. If you opt for an automatic reimbursement plan, you must authorize the lender to debit the regular payments directly from your bank account or debit card on the due date of each payment. In summary, car little loans have a variety of payment options that can work in different scenarios and build the base of a better understatement of the costumer economic situation
Lenders can’t make recurring automatic debits unless you agree in advance to make these transfers from your bank account – and they can do so only after giving you a clear informative statement about the terms of the transaction. The lender must give you a copy of your authorization for recurring automatic debits. In addition, it is illegal for a company to require the credit to be reimbursed through preauthorized automatic transfers.
CAR TITLE LOANS: CONVERSION
If you can’t repay the loan within 30 days, the lender can offer to “convert” the loan into a new one. They say “roll over” in English. The roll over process always adds charges and interest to the amount you originally borrowed. For example, you take a loan of $ 500 for a period of 30 days. But at the end of the 30 days you can’t pay the total of $ 625 plus the other charges. You can only pay $ 125. If you refinance the remaining amount to a new loan, more charges and interest will be added to the amount you already owed.
This could result in a dangerous loan cycle and refinancing of the original loan amount. You may end up paying charges for an amount greater than the amount you originally borrowed, and in reality, you may find it impossible to pay your total debt. If you do not pay what you owe, the lender can proceed to the seizure of your vehicle.