Your car is your lifeline - it helps you get to work, pick up groceries, ferry the kids to soccer practice and get around on weekends. A car is a significant asset to put on the line, and if you, for any reason, fail to make the required payments according to the loan agreement, it can result in car title repossession.
Losing your car is not something you want to consider, so when you choose a car title loan, read the terms of the agreement and understand them to avoid losing this precious asset. When taking out a car title loan, it's important to understand how your loan is structured and what you will be expected to pay and when.
The interest rate charged by the lender and the length of the loan term are the most important parts of the agreement. The interest rate is the amount a lender charges you for lending you cash. It is expressed as a percentage of the amount you borrow.
Some lenders only communicate their interest rate in monthly terms, and this can mislead you into thinking that you're paying less. But you can calculate an annual interest rate by multiplying the monthly rate by 12.
The term of the agreement denotes how long you have to pay back the total cash owed. This can vary from 30 days to more than 24 months depending on the agreement, the terms you want, and your financial situation.
What happens at the end of the term of a title loan is another important part of the agreement. Some agreements are structured so that the bulk of the monthly payments go towards interest only, and a balloon payment, which can equal the total borrowed amount, is due at the end of the term.
If you're unable to pay the balloon payment, your loan may be rolled over into another agreement. If you don't read the fine print carefully, you could end up owing the same amount you owed in the beginning even after making all the interest payments.
By choosing a reputable lender, you can prevent the heartache of losing one of your most valuable assets - your car. Wilshire Consumer Credit offers higher-limit car title loans with flexible terms and competitive interest rates in California and four other states. In California, the minimum borrowed amount is $2,510 for this lender.
You can find out whether you qualify for your car title loan and get approval in just a few minutes when you contact them online or by phone here. Benefit from a car title loan lender that puts your interests first. Apply now!