Title loans Fort Worth have quite a few perks they hold over other types of loans. Getting one is a very fast, simple process that only requires you to have a car, and you never need to go through any sort of credit check to get one. One of the most common questions among borrowers is how much title loan interest rates are.
This handy guide will cover everything you need to know about title loan interest rates, ensuring that you have an accurate idea of how much a title loan will cost you.
To understand how the interest rates on title loans work, it's important to understand how the title lending industry is regulated. The federal government can set regulations on the title lending industry throughout the country, and each state can set regulations on title loan companies operating within the state.
The federal government has only regulated the age you must be to get a title loan, which is 18 years old and up. Other than that, there are also certain characteristics of title loans that don't change no matter the state. They're always secured loans with the car being the collateral and the title loan company getting the title to the borrower's car to hold onto during that loan's repayment period.
States set their own regulations and limits for certain aspects of title loans, including interest rates. Therefore, the maximum interest rate that the lender can charge you will be determined by what state you're in.
If you're getting a title loan in Fort Worth, it's going to follow the Texas title loan regulations. For the most part, Texas doesn't put many restrictions on the title lending industry, but it does set the interest rate limit at 10 percent. However, it's important to keep in mind that there can be fees for title loans in Texas besides the interest.
As far as the other key title loan regulations in Texas, here is a quick rundown:
There are essentially three types of states when it comes to title loan interest rates:
Delaware is one example of the first type of state, as it doesn't put any limit on the interest rate title loan companies can charge.
Texas is an example of the second type of state, since it has that interest rate limit of 10-percent on title loans.
Arizona is an example of the third type of state. Its interest rate limits on title loans are as follows:
If you aren't in Texas, you can see how much you'd need to pay in interest on a title loan by looking up the title loan laws in your state. Another option is to go through the title loan application process, which goes as follows:
Title loan companies need to provide you with a full breakdown of any interest and fees on your title loan. If this isn't clear to you, all you need to do is ask.
It's easy to extend title loans if you need more time to pay. When you extend a title loan, the interest rate remains the same.
It's always smart to know what the interest rate will be before you finish applying for a loan. This can help you determine if a title loan is the right choice for you. To minimize the amount of interest you pay, try to get your title loan paid off on the due date so that you don't need to extend it and pay extra for that convenience.