Car title loans Austin, TX provide the means to purchase a car at an extremely low interest rate. The reason for this is that they are considered as a second loan and therefore are handled on the basis of credit. It is a fact that almost every car loan in the market charges you high interest rate.
Need to pay an extra amount as cash down
Some of the lenders have the facility of lowering the interest rate when the car title loans are repaid in time. To get this benefit, you need to pay an extra amount as cash down.
The repayment schedule is short for the car title loans. It is shorter than a long term car loan but the time span is almost equal. This means that you have the benefit of paying less monthly installments with long repayment time period.
The benefit is that you are not required to repay the money within a specified period of time after you acquire the car. You can also opt for a car within the three years period.
Car title loans are different from a bad credit auto loan. When you buy a car through bad credit, you get a bad credit loan from the bank or lender. The problem arises when you fail to repay the loan in time.
You are not required to spend lots of money
The payment of car title loans Austin, TX is made through installments. With this installment arrangement, you are not required to spend lots of money in the form of a down payment. The repayment plan is relatively better as the interest rates are reduced.
The rate of interest is based on your credit score. The lenders use your credit history to estimate the interest rate of your credit card. The short term car loan is ideal for those who need a car fast.
Usually, it takes several weeks for the payment of this loan. The lenders do not prefer them, unless you will be able to repay the loan within that period. Most of the borrowers will require a few months to pay the loan as per the agreement.
These loans are good for people who do not have easy credit. They can be used by borrowers who find it difficult to pay the entire loan amount within the specified time. The lenders offer easy credit loans so that they can compensate for the problem of bad credit.
Available in secured and unsecured format
Car title loans Austin, TX are available in secured and unsecured format. If you are looking for an unsecured loan, then the monthly installment might be higher. If you choose the secured option, then the interest rate might be lower as there is a risk involved.
While choosing a secured option, the interest rate is fixed. The monthly installment depends on the credit rating of the borrower. In order to avail the secured option, you will need to provide the lenders the collateral against the loan amount.
The interest rate for this type of loan is much lower than the traditional loans. A person having a bad credit history can easily get the car title loans in Austin, TX by simply filling up the online application form.