We all expect to pay high fees with a title loan. It comes with the territory when you’re looking for any type of loan that doesn’t require excellent credit. As an example, you can expect a high interest rate with a payday loan. That’s a given when you’re dealing with a title loan that’s designed for consumers with bad credit. With a mortgage loan, we’re going to see an APR that’s in the middle single digits. A finance rate around 4-5% doesn’t seem like much on paper. Especially when you compare it to a high-interest mortgage cash out or refinance. But it’s going to add up over the long run when a borrower pays off a home loan over 20-30 years.

Most online title loans will come with high fees as well. As is the case with a cash advance, there’s often going to be a large APR when a borrower uses their pink slip for collateral. Lenders don’t always do the traditional credit checks you see with normal bank financing and personal loans. Credit checks for good credit loans are common and you don’t see those with this form of financing. You can expect fees with a car title loan, but we know of a few ways you can avoid extreme charges.

Title Loan Fees To Expect

Search for a title loan lender that’s willing to work with you on lowering the rate and improving the payoff terms. You may think this is easier said than done when dealing with bad credit lenders. But consider most title loan companies will look to get your business. When you contact an online lender they’re going to qualify you and give a quote for their services. Most often a firm will say you can get a certain amount of money that’s payable over a few months or years. Don’t take these amounts and terms as the way it’s going to be! Much like you would with a licensed mortgage company or personal loan lender it always pays to negotiate and try to for better title loan fees.

Here in the South, we’re always going to see different financing amounts when you break it down on a state level. Online title loans laws in Florida will have different terms than what you see with title lending laws in Georgia or even Arkansas. Take that into consideration when you see a more favorable rate for an auto title loan in a neighboring state.

Get Manageable Fees With Your Title Loan

Borrow less money than what you need. Advice like this seems obvious, but we see examples where applicants take out a larger auto title loan than what they need. Just last week we saw a title loan application come across our desk from a person in Atlanta, Georgia. This borrower wanted to borrow $1,000 by using their vehicle’s title as collateral. One look at the online application and it was easy to see they would qualify for a much larger amount than what she first asked for.

Don’t let your lender give you more money than you need. It will look good upfront to have more cash in your pocket but you will end up paying back a lot more money over the life of the auto title loan. We recommend you fill out an application with our company for a title loan. That way you can compare a few different funding options and make a final decision. We know there are many financing choices available to consumers in cities like Miami and Atlanta. Don’t spend hours online looking for a car title loan company when you don’t have to!

Title Loan Refinance Fees Are High As Well

It’s probably best to decline the extra products and services that your lender may offer you and that includes insurance options and high fee title loan refinances. Most lenders in the Southeast are only allowed to provide certain products. But that’s not always the case when looking at the twelve states on their own. Some will attempt to add credit insurance to your vehicle equity loan. Others will add on services or products to the financing contract which you don’t need. We also know of some firms that try to sell borrowers on a credit card that’s designed for those with bad credit. The goal is to use a secured credit card to improve your credit score. Don’t get mixed up in these extra items. If you need a title loan then get one, but do whatever you can to get the best rates and terms with no added items.