Paying Off Your Auto Title Loan Early Saves You Money
Whether you needed to borrow money to afford your college tuition, make a rent payment, or start a business. There are few things more liberating than the feeling of paying off a loan. Auto title loans, also known as auto equity loans, are one of the many options available to vehicle owners. Vehicle owners who need to borrow some quick cash. And, if you know how to pay off a title loan fast. You will surely benefit from taking out a loan of this kind.
What Is An Auto Title Loan?
Auto title loans are sometimes referred to as auto equity loans, pink slip loans, or car collateral loans. This is a loan where the borrower’s car, truck, SUV, RV, or motorcycle is used to secure a cash loan. The maximum loan amount is based on the value of the vehicle. The borrower gets to keep driving their vehicle. The lender becomes a lien-holder on the car until the loan and interest are paid off.
Are you unable to get approved for a bank loan due to bad credit, bankruptcy, or unemployment? Taking out a loan on your vehicle is an easy and fast way to borrow the cash you need. CFS always goes the extra mile when providing you with excellent customer service via our car title loan representatives.
Why Should I Pay Off A Title Loan Early?
The number one reason to pay off any loan early is that you will end up saving money on interest. Interest is the extra money you have to pay the lender for giving you the loan. It is usually charged as a rate, or percentage of the amount owed. Interest rates vary widely depending on the lender and the type of loan. Be sure to find a lender who will charge you the lowest possible interest rate on your auto title loan.
Additionally, many reputable loan providers, like Champion Financial Services, will not charge any prepayment penalties. This is good for those who pay off their auto title loans before the end of the loan term. On top of the financial savings, there is a huge sense of satisfaction. This comes from knowing that your loan has been paid off and that you own your vehicle free and clear. Here are a few of the top tips for those who would like to save money on interest. Read below how to pay off your auto title loan early:
Round-Up Your Scheduled Payment Amounts
Rounding up your scheduled payments to the nearest $10, $20, $50, or even $100-dollar increment. This can be a great way to pay down your loan amount. Therefore, you can save on interest and pay off your loan sooner. Remember, the sooner you pay off a title loan, the less you will pay on interest. People who fail to pay off their auto title loan often end up paying more interest fees!
Make One Big Lump Sum Payment Each Year
It can help you pay off your loan quicker and save you money on interest. Whether it be unemployment insurance, court earnings, the lottery, etc. It would be prudent of you to use that cash to pay down your loan …
Don’t Miss Any Loan Payments
Missing payments on a loan should be avoided at all costs. It will cause you to fall behind on your scheduled payments. It will possibly subject you to penalties and will result in you eventually paying more money in interest. If you aren’t able to pay off your loan, your car could be taken away from you. CFS never wants to repossess a car. We always do our best to work with you to pay off your title loan.
Make More Frequent Loan Payments
Try making payments of half the monthly amount once every two weeks if your lender allows. For example, if you are paying $400 a month, try splitting that payment into $200 payments every two weeks. On the months that have five weeks, you will end up paying one-and-a-half times your monthly payment. This will help you pay off your loan in a shorter amount of time and save you money on interest. For more finance tips, click here!