Are title loans high interest?
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Car title loans often carry high-interest rates. In some cases, these rates are significantly higher than credit card rates, and may even exceed 100 percentā¦ Car title loans are also short-term loans, which means that they must be repaid quickly.
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However, there are exorbitant costs associated with title loans, especially car title loans, that should give borrowers pause. The annual percentage rate (APR) on an average car title loan can be...
Itās typical for interest on a title loan to top 100%. But with title loans and other types of short-term loans, the rate you get typically depends more on your loan amount, your term and where you live, rather than solely on your personal credit rating. All three can influence your rate.
The highest interest rate that can be assessed on a loan in North Carolina is 30 percent annually. The title loans sold in South Carolina don't come anywhere close to that.
The high interest rates on title loans are justified by defenders of the industry, stating that the higher interest rates are necessary for the lending companies to turn profit. The borrowers are considered "high risk" and may default on their debt.
Title loans in Georgia have interest rates that vary according to the length of the loan. For the first three months of the loan, the interest rate cannot exceed 25 percent per month. After three months, the maximum amount that can be charged is 12.5 percent per month. Top title loan companies in Georgia:
In addition to high interest, these car title loans usually include a number of fees that add up quickly. Anytime some guy is telling you he owns the bank, run. Even though these lenders have been...
Interest rates are also notoriously high on title loans, often in the triple digits. This means you can end up paying far more than the original value of your loan. More than half of car title loans become long-term debt burdens to borrowers.
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