Eagle Title Loans
216 S 8th St #128
Opelika, AL 36801
(334) 319-8871
Eagle Title Loans
216 S 8th St #128
Opelika, AL 36801
(334) 319-8871
You get quick cash for your new car when you choose Eagle Title Loans.
To any title loan, it is important to know how interest works with the car title loans. Title loans can be quite useful when one wants to acquire cash fast, but the expenses can be rather steep if not controlled. Eagle Title Loans is a company that tries to be as open as possible and explain to the clients the potential consequences of their loan decisions. This article will provide you with a clear insight on the interest rates of title loans, how they are charged, and some factors you ought to look at when dealing with the title loans.
Title loans are usually short term loans that are offered with the help of vehicle title as security. They are well known for their fast approval time and little or no credit check hence available to anyone regardless of their credit status.
The rate that the lender levies on the amount borrowed as the cost of borrowing the money. It is usually stated on a monthly basis in regard to title loans.
The interest charged (on an annual basis) for the credit along with any other fees that may be incurred. The APR is more detailed than the nominal interest rate and gives the cost of the loan within a year.
Several factors can influence the interest rates on title loans:
It also means that the higher loan amounts may also feature different interest rates.
It might also be the case that different terms have different rates especially when one is shorter compared to the other.
Having said that, various states have developed legal frameworks that either set or guide the rates of title loan interest rates.
Some of the lenders may have different policies and rate charges from others.
Title loan interest rates can be significantly higher than traditional loans. It's not uncommon for monthly interest rates to range from 15% to 25%, which translates to an APR of 180% to 300%. It's important to carefully review these rates and understand the full cost of borrowing.
To calculate the monthly interest on a title loan, use the following formula:
Monthly Interest = Loan Amount x Monthly Interest Rate
For example, if you borrow $1,000 with a monthly interest rate of 20%, the monthly interest would be:
Monthly Interest = $1, 000 x 0.20 = $200
To determine the total cost of the loan, multiply the monthly interest by the number of months in the loan term and add the principal amount:
Total Cost = (Monthly Interest x Loan Term) + Principal Amount
If the loan term is 30 days (or 1 month), the total cost would be:
Total Cost = ($200 x 1) + $1, 000 = $1, 200
To convert the monthly interest rate to an APR, use the following formula:
APR = Monthly Interest Rate x 12
For a monthly interest rate of 20%, the APR would be:
APR = 0.20 x 12 = 2.40 or 240%
Title loans typically have higher interest rates compared to traditional loans like personal loans or credit cards. This is due to the higher risk for lenders and the convenience of fast approval and no credit checks.
| Loan Type | Interest Rate | APR |
| Title Loan | 15% - 25% monthly | 180% - 300% |
| Personal Loan | 5% - 36% annually | 5% - 36% |
| Credit Card | 12% - 25% annually | 12% - 25% |
While title loans can provide immediate financial relief, the high interest rates can lead to significant costs over time. It's important to consider the total repayment amount and compare it to other available options.
Borrowing more than you need can increase the total interest you pay. Calculate the exact amount required to meet your financial needs and avoid taking out a larger loan.
While shorter loan terms mean higher monthly payments, they also reduce the overall interest paid. Balance the loan term with your ability to repay comfortably.
If possible, make extra payments towards your principal balance. This can reduce the total interest paid over the life of the loan.
Familiarize yourself with state laws and regulations regarding title loans. Some states have caps on interest rates and fees, which can affect the total cost of your loan.
Select a lender with transparent terms and reasonable rates. Eagle Title Loans prioritizes transparency and customer satisfaction, providing clear information on loan costs and terms.
At Eagle Title Loans, we pride ourselves on transparency. We provide clear and straightforward information about our interest rates and loan terms, ensuring you understand the full cost before committing.
It is easier for you to meet your payment commitments because our loan repayment terms are structured in a way that you can afford without incurring more interest charges.
Let our wonderful customer service team handle all your inquiries as they are always willing to help. We will ensure that all our dealings with you are positive and that you get to make the right borrowing decisions.
What is the Normal Interest Rate of a Title Loan?
Interest charges of title loans vary between 15% to 25% of the principal sum, meaning the annual percentage rate ranges between 180% to 300%.
Title loan interest rates, for the most part, are unchangeable; nevertheless, selecting a shorter loan period, paying more than the amount required, and only borrowing what is necessary can assist in controlling the total cost.
If you are unable to make the payment on your title loan, please get in touch with our customer service department. You may be eligible for a change in your repayment schedule depending on your current situation. Inability to repay can attract other charges and this comes with the possibility of the car being repossessed.
At Eagle Title Loans, we do not have hidden charges, and our loan agreements are well explained with interest rates and fees well stated. We make certain that you are fully aware of the cost of borrowing before you proceed to take a loan.
For any questions or assistance with your title loan, feel free to contact us
It is significant to comprehend the interest rates charged on title loans to make the right borrowing decisions. Title loans are a fast way to get money in case of an emergency but one must pay attention to the rates and choose only if necessary. We here at Eagle Title Loans have a mission of ensuring that our clients get all the information they need and to assist them in managing their financial situations. Open this position today and let us help you with your financial requirements in a simple and uncomplicated way.
