Title Loan Interest Rates

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Title Loan Interest Rates from Loan Cheetah

Title Loan Interest Rates

The title loan industry is heavily regulated by consumer protection laws in each state. From Virginia to California, there are different laws that determine the amount of interest that can be charged to title loan customers. Applying for title loans online can be confusing for customers because of the complicated laws that govern fees, the duration of the contract and interest rates.

If you are in the market for title loans in your state, it is a good idea to learn about how title loan rates work. After all, the amount of money you will be required to repay is dependent on your loan's interest rates. Your goal must be to negotiate the best terms possible for your title loan.

All Car Title Loan Interest Rates Are Not Created Equal

When it comes to car title interest rates, what is acceptable in one state is outlawed in another state. Legislators in some states set a limit on the auto title loan rates that can be charged, while other states allow the title loan companies to determine their own rates.

It is legal for residents to apply for title loans within the borders of only 40 percent of the states within the U.S. These states are Alabama, Arizona, California, Delaware, Georgia, Idaho, Illinois, Louisiana, Mississippi, Missouri, Nevada, New Hampshire, New Mexico, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia and Wisconsin.

How Title Loans Are Calculated

It is no secret that title loans can be expensive if they are not repaid within a short period of time. To understand the expenses associated with title loan interest, you must have a general knowledge about the way in which title loans are calculated.

Luckily, we have done the key research, and provided you with the current information about interest rates for title loans. If you are in the midst of repaying an automobile title loan, this information will give you a sense of urgency to quickly repay your title loan before the end of the term.

Title loans consist of the principal, interest rate and the term of the loan. The principal is the amount of money that you originally borrowed from a lender. The interest is a percentage of the money that is charged by the lender as the cost of borrowing the money from them.

Car title loan interest rates are calculated in monthly and yearly terms. Yearly interest rates are called APR or Annual Percentage Rates. Most interest rates are computed as simple interest. In some title loans, the loans are computed as compounded interest.

Simple interest is when the interest is applied to the principal only. Compounded interest accrues on the principal and interest that has been accrued. In many states, it is illegal for title lenders to offer compounded loans for their title loans.

Let's take a look at how monthly and yearly interest rates in a typical title loan scenario. You have an emergency expense, and you need to borrow $2,000 quickly. The only lender that will provide cash within 24 hours is an online title lender.

The title loan representative informs you that the monthly interest rate for your title loan is 36 percent and the APR is 432 percent. To get the privilege of borrowing money quickly from a title loan company, you will pay $720 per month in addition to the principal amount.

At this rate, the total cost of this loan will be $8,861.40 for the year. You will pay an additional $6,861.40 to borrow $2,000. The expense of this fictitious loan provides you with a sense of urgency to repay your title loan as soon as possible. You must be aware that this amount does not include any fees for the title loan.

Title Loan Information by State

This article explores title loan interest rates and popular title lenders in each state in which title loans are legal. By reviewing this information, you will be able to make an informed decision about securing your next auto title loan in your state.

Alabama

According to the state's laws, the maximum amount of interest that a title lender can charge is 25 percent for each month of the loan. The top three most popular lenders in Alabama are:

  1. TitleMax Title Loans - With over 90 stores throughout the state, TitleMax Title Loans is the most popular title lender in Alabama. The most common interest rate is about 300 percent per year depending on the length of the loan.
  2. LoanMax Title Loans - This lender is another popular title loan lender that can charge up to 300 percent interest per year for title loans. The amount that customers are charged depends on the amount that is borrowed and the duration of the loan.
  3. Title Loan Express - This area title lender loans amounts from $100 to $3,500. When customers borrow any amount of money, they can expect to pay 50 percent interest for the two months.

What Alabama title loan customers should know - If you pawn your car's title in Alabama, you should understand that these loans were designed to be short term solutions to your cash flow problems. If your loan exceeds the maximum amount of interest that can be charged according to the law, the lender may not be able to enforce the contract. Click here for additional information about the Alabama title loan laws.


Arizona

Lawmakers in Arizona have enacted legislation that sets maximum title loan rates at various tiers. Here are examples of the maximum interest rates for title loans in this state.

  • $500 or less is 17 percent per month
  • $501 - $2,500 is 15 percent per month
  • $2,501 - $4,999 is 13 percent per month
  • $5,000 or above is 10 percent

The top title lenders in Arizona are:

  1. TitleMax Title Loans - With nearly 100 stores in the state of Arizona, TitleMax Title Loans is the top lender in the state. Although the website states that it offers competitive title loan interest rates, the website does not provide an exact amount of interest that is charged per loan. For loan amounts above $5,000, the maximum amount that can be charged in interest rates for the year is 120 percent. For amounts under $5,000, the loan interest rate can range from 130 percent per year to 150 percent per year.
  2. Phoenix Title Loans - This title loan company offer loans on commercial vehicles, boats and recreational vehicles. Phoenix title loan states that they can offer loans for as little as 5 percent depending on the amount and the duration of the loan.
  3. Southwest Title Loans - This title loan company provides title loans for recreational vehicles, boats, cars, trucks trailers and commercial vehicles for amounts up to %50,000. The interest amounts vary. They are not disclosed until customers apply for a title loan with Southwest Title Loans.

What Arizona customers should know - According to the Arizona State Legislature, Arizona title lenders must provide customers with a contract the provides the amount of the loan and the interest that will be repaid when the loan is repaid. Click here for additional information about Arizona title loans.


California

In California, interest rates for title loans are capped at 30 percent per month for amounts that are borrowed under $2,500. Loan amounts that exceed $2,500 are not bound by state maximums. For this reason, many title lenders that operate in California only provide loans for amounts that exceed $2,500.

Popular title lenders in California include:

  1. Check Into Cash - A common interest for title loans at Check Into Cash is 39 percent per month for amounts over $2,500.
  2. LoanMart - Title loans at LoanMart offer loans with interest rates between 60 and 180 per year. If you get a loan for $2,501, you can expect to have a 90 percent interest rate per year.
  3. TitleMax - TitleMax does not provide information about their California interest rates. According to the company's website, they provide competitive interests for title loans.

What you should know about title loan laws in California - Click here for additional information about California title loan laws.


Delaware

Delaware is a state that gives title loan companies the flexibility to charge any amount of interest. There is no maximum amount of interest that a lender can charge.

The top title lenders in Delaware are:

  1. TitleMax Title Loans - With 3 locations, TitleMax in Delaware offers competitive interest rates for title loans. The company's loan interest rates vary according to the length and amount of the loan.
  2. Capitol Title Loans - This company offers competitive title loan interest rates that are fixed throughout the term of the loan. In order to get an accurate estimate of the interest rates that will be charged, you must submit an application and speak with a representative.
  3. LoanMax Title Loans - The annual percentage rate for title loans in Delaware is 300 percent per year.

What customers should know about title loans in Delaware - Since interest rates are not capped on title loans in Delaware, it is a good idea for you to shop around. You might be able to find competitive rates with online title lenders. Click here for additional information about Delaware title loan laws.


Georgia

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:

  1. Atlanta Title Loans - The interest that Atlanta Title Loans charges is based on the amount and duration of the loan.
  2. TitleMax Title Loans - There are over 200 locations of TitleMax Loan stores in Georgia. This company offers rates that are competitive to the rates of other title lenders in the industry. You must apply for a loan in order to get the title loan rates.
  3. LoanMax Title Loans - Interest rates at LoanMax vary. You can expect to pay a triple-digit yearly interest rate for your loan.

What customers need to know about title loans in Georgia - Interest rates for title loans in Georgia can be as much as 187.5 percent. Click here for additional information about Georgia title loan laws.


Idaho

Lawmakers in Idaho have opted not to set maximum interest rates for title loans.

Top title loan companies include:

  1. LoanMax Title Loans - LoanMax title loans charge triple-digit interest rates for their loans. The actual amount that you will pay is dependent on your loan amount and the length of your loan.
  2. Idaho Title Loans - When you apply for a loan with Idaho Title Loans, you will be provided with the loan valuation including the interest rates. The company claims to offer interest rates that are competitive with similar title loan companies in Idaho.
  3. Northwest Title Loans - This company provides triple-digit title loan interest rates that are on par with title lenders in Idaho. To get an exact interest rate quote, you must apply for a title loan with Northwest Title Loans.

What title loan customers in Idaho should know - It is not unusual for title loans in Idaho to have triple-digit interest rates. Click here for additional information about Idaho title loan laws.


Illinois

In Illinois, title lenders may charge any amount of interest that fits their business model. There is no maximum interest rate that can be charged for title loans in this state.

Top title loan companies in Illinois include:

  1. Illinois Title Loans - Exact loan interest rate quotes can be obtained after you apply for a loan with Illinois Title Loans. You can expect to pay triple-digit annual interest rates for title loans with this company.
  2. TitleMax Title Loans - TitleMax has interest rates that are usually aligned with local standard interest rates. Since title loans in Illinois are not capped, you can expect to pay triple-digit annual interest.
  3. Midwest Title Loans - Midwest Title Loans provide interest rates according to the length and amount of the loan. In order to obtain additional information about this company's title loans, you will be required to apply for a title loan with them.

What Illinois title loan customers should know - It is quite common for Illinois title lenders to provide loans with a triple-digit annual interest rates. Click here for additional information about title loan laws in Illinois.


Louisiana

According to Louisiana law, the maximum interest rate that can be charged per month is 36 percent for loans under $350 and two months. For loans that exceed this amount and duration, there is no cap on the maximum amount of interest that can be charged for title loans in Louisiana.

Top title loan in Louisiana include:

  1. CashCow Title Loans - Title loan representatives at CashCow provide information about their title loan interest rates.
  2. ACE Cash Express - At this title loan company, you can apply for a title loan up to $1,000. ACE Cash Express does not provide title loans for amounts under $500. For a $500, you can expect to pay 131 percent APR. If you borrow $1,000, you can expect to pay 83 percent APR.
  3. American Title Loans - This title loan company does not publish information about their loan interest rates. You will have access to their interest rates after you apply for the title loan.

What Louisiana title loan customers should know - If you borrow title loan money in Louisiana, it is best to get a short term loan for an amount under $350. In Louisiana, many title lenders do not provide loans fall within the terms of the minimum amount of money that can be charged. Click here for additional information about title loan laws in Louisiana.


Mississippi

Mississippi laws state that title lenders can charge up to 25 percent for title loan interest rates for each month of the loan.

Top title loan companies in Mississippi include:

  1. LoanMax Title Loans - Detailed interest rates will be provided at the time of the application. If LoanMax charges the maximum amount for interest rates, you can expect to pay up to 300 percent in interest annually.
  2. Mississippi Title Loans - Mississippi Title Loans offers loan solutions that are competitive with other title loan companies in Mississippi.
  3. TitleMax Title Loans - To get additional information about the interest rates at TitleMax, you will have to contact the company. They do not publish information about their interest rates on their website.

What Mississippi title loan customers should know - The average interest in Mississippi is in the triple digits. Many lenders charge up to 300 percent in interest rates for the year. Click here for additional information about title loan laws in Mississippi.


Nevada

In Nevada, there is no cap on the amount of interest that can be charged for title loans.

Top title loan companies in Nevada include:

  1. Nevada Title and Payday Loans - Interest rates are determined based on the duration and amount of the title loan. This information is provided when you apply for a title loan.
  2. TitleMax Title Loans - The interest rates are available after you apply for a title loan with TitleMax Title Loans.
  3. US Auto Title Loans - This company offers title loans with interest rates from 8.9 percent to 28 percent per month.

What Nevada title loan customers should know - It is not uncommon for title loans in Nevada to have triple-digit annual interest rates. Click here for additional information about title loan laws in Nevada.


New Hampshire

Title loans in New Hampshire may be assessed a maximum interest rate of 25 percent per month.

  1. New England Auto Finance - Title loan interest rates at this company are available by speaking with a title loan representative.
  2. TitleMax Title Loans - You can get additional information about the interest rates at TitleMax in New Hampshire after you apply for a title loan with them.
  3. TitleCash - All title laws at TitleCash are subject to New Hampshire's laws. This means that you can expect to pay triple-digit annual interest rates.

Click here for additional information about title loans in New Hampshire.

What New Hampshire title loan customers should know - If a lender charges the maximum interest rate of 25 percent, you can expect to pay 300 percent per year interest. It is best to get a title loan in New Hampshire for a short period of time in order to pay the least amount of interest.

New Mexico

There are no interest rate caps in New Mexico. Lenders are free to charge any amount of interest.

Top title loan companies in New Mexico include:

  1. New Mexico Title Loans - Interest rates at this company are competitive with other title lenders in New Mexico. In order to get an actual interest rate company, you must apply for a title loan with them.
  2. LoanMax Title Loans - This lender charges annual interest rates in the triple digits annually. The actual interest rates are not published on their site.
  3. TitleMax Title Loans - This popular title loan company does not provide online interest rate estimates. You must contact a representative to get information about their interest rates.

What New Mexico title loan customers should know - It is not uncommon for title loans in New Mexico to have triple-digit annual interest rates. Click here for additional information about title loans in New Mexico.


South Carolina

In South Carolina, loans under $600 are subjected to a cap. There is no maximum amount of interest for loans that exceed $600.

  1. Carolina Title Loans - This company discloses rates after an application is submitted.
  2. Auto Money Title Loans - This title loan company provides interest rate quotes based on the value of the car and the duration of the loan.
  3. LoanMax Title Loans - Interest rates are not published by LoanMax.

What South Carolina title loan customers should know - Most title lenders only provide loans that exceed $600. When they operate in this manner, they do not have to adhere to the state-mandated cap. If you are allowed to borrow under $600, you may be charged additional fees that inflate the cost of the loan. Click here for additional information about title loans in South Carolina.


South Dakota

South Dakota title loans are not subject to maximum interest rates. Lenders may charge any amount of interest.

Top title loans in South Dakota include:

  1. Dakota Auto Title Loans - According to their website, a title loan from this company can be higher or lower than 240 percent depending on the terms of the loan.
  2. North American Title Loans - Title loans at this company are based on the valuation and length of the title loan.
  3. Dollar Loan Center - If you borrow $500, you can expect to pay an annual interest rate of 240 percent.

What South Dakota title loan customers should know - South Dakota does not have laws that prevent title lenders from giving loans with triple-digit annual interest rates. Since the interest rates are not capped, you may be able to get a competitive rate by speaking with representatives from different title loan companies. Click here for additional information about title loans in South Dakota.


Tennessee

Title loans in Tennessee are limited to interest rates of 2 percent each month in addition to one-fifth of the car's value.

Top title loans in Tennessee include:

  1. Tennessee Title Loans - Title loan rates are provided after a loan application has been submitted.
  2. TitleMax Title Loans - This company does not provide information about interest rates until an application has been completed.
  3. LoanMax Title Loans - Interest rates and fees are disclosed after an application has been submitted.

What Tennessee title loan customers should know - Tennessee allows title lenders to provide title loans to customers at triple-digit annual interest rates. Some title loan companies provide customers higher vehicle valuations in order to charge them more money for the loan. When you get a title loan in Tennessee, be certain that you have received an accurate estimate of your car's value. Click here for additional information about title loans in Tennessee.


Texas

In Texas, title loans are capped at 10 percent per month. However, interest rates may vary depending on the city of residence.

Top title loan companies in Texas include:

  1. Loan Star Title Loans - Depending on the amount of the title loan, monthly interest rates can range from 24.99 percent to 29.99 percent. Yearly interest rates range from 320.46 percent to 382.80 percent.
  2. Texas Title Loans - Loans up to $10,000 have an annual interest rate that ranges from 130 percent to 300 percent.
  3. TitleMax Title Loans - This company provides interest rate information after an application has been submitted.

What Texas title loan customers should know - Title lenders often exceed the state interest rates. Some lenders charge up to 500 percent in interest for title loans. Title lenders can do this because they register as Credit Access Businesses. When they register as these types of companies, they can conduct business as loan brokers and justify charging excess fees for the transaction because they are not operating as lenders in the transactions. Click here for additional information about title loans in Texas.


Utah

Title loan interest rates in Utah are not capped at a designated amount.

Top title loans in Utah include:

  1. Utah Title Loans - Title loan rates are not disclosed until you apply for a title loan.
  2. TitleMax Title Loans - This company does not provide interest rates until a title loan application has been submitted.
  3. Easy Title Loans Utah - This company claims their interest rates are 70 percent less than comparable title loan rates. In order to get an accurate interest rate quote, you must apply for a title loan with Easy Title Loans Utah.

What Utah title loan customers should know - Title loans in Utah have been known to have rates up to 500 percent. It is best to shop around and get your guaranteed interest rate in writing. Click here for additional information about title loans in Utah.


Virginia

Legislators in Virginia have opted for a tiered approach to regulating interest rates for title loans in Virginia. Here are the interest rate amounts for title loans.

  • Amounts up to $700 is 22 percent per month.
  • $701 - $1400 is 18 percent per month
  • $1,401 and above is 15 percent per month

Top title loan companies in Virginia include:

  1. Check Into Cash - The interest rates charged by this company vary according to the specifics of the loan. They guarantee that they can beat the interest rates charged by other title lenders.
  2. LoanMax Title Loans - The monthly and annual interest rates are not readily published on their site.
  3. TitleMax Title Loans - You have to apply for a loan with TitleMax to get information about their loan interest rates.

What Virginia title loan customers should know - Title lenders in Virginia title lenders have created various ways of getting around the maximum interest rates in the state. Some title lenders use third party companies to act as intermediaries to justify charging interest rates that exceed the state mandated interest rates. Click here for additional information about title loans in Virginia.


Wisconsin

In Wisconsin, there are no maximum limits for title loans that are provided to customers in the state.

Top title loan companies in Wisconsin include:

  1. Wisconsin Auto Title Loans - This company offers competitive title loan rates. Although they do not provide loan interest rate quotes online, they guarantee to beat competitors' interest rates.
  2. LoanMax Title Loans - In order to get interest rate from LoanMax, you must apply for a title loan.
  3. TitleMax Title Loans - This company only offers interest rate quotes once you apply for a title loan.

What Wisconsin title loan customers should know - Title lenders in Wisconsin must include the interest rate amount on your title loan contract. The loan contract must also include the full amount that you will pay at the end of the loan contract. Click here for additional information about title loans in Wisconsin.


Resources for Title Loan Information

As you can tell from the information in this article, there are several factors that determine your interest rates for title loans. There are many resources available to help you sort through the maze of information about interest rates for title loans. Here are a list of credible resources about interest rates for title loans.

Car title loans are serious contracts with expensive terms and major consequences. These loans are designed to be short term loan instruments. In some instances, loans that last for long periods of time can end up costing thousands of dollars in interest alone. It is best to use title loans wisely and repay them quickly.

The information provided in this article is not intended to deter you from or encourage you to get a title loan. It is our hopes that you have enough information to choose a title loan with care and consideration.

Title loan legislation in each state changes frequently. Every attempt was made to provide accurate information for you to make informed choices about title loans. It is a good idea for you to conduct further research on any topic that is covered in this article.

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