Car Title Loan Rate Calculator
Estimate monthly payments, total interest, and break-even on fees for your car title-backed loan.
Additional Information and Definitions
Loan Amount
The principal borrowed against the value of your car. Higher amounts might lead to bigger monthly costs.
Annual Interest Rate (%)
The yearly cost of this loan, converted to a monthly rate in calculations. High rates are common for title loans.
Term (Months)
How many months until this loan is fully paid off. Longer terms lower monthly payments but add total interest.
Origination Fee
One-time fee for setting up the loan. Some lenders charge a fixed amount or a percentage of the loan.
Understand Auto-Backed Debt
Plan your payoff timeline to avoid rolling over your vehicle's title.
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Car Title Loan Terms
Important definitions you should know before borrowing against your car.
Loan Amount:
The portion of your car's value used as collateral. Missing payments can risk vehicle repossession.
Term Months:
How many months you have to repay. Some lenders allow extensions, but that might raise costs significantly.
Origination Fee:
A one-time charge for processing the loan. This is often added to what you owe if not paid upfront.
Break-Even Month:
The month your principal repaid exceeds the up-front fees, effectively offsetting the origination cost.
5 Surprising Realities About Car Title Loans
Car title loans come with specific perks and pitfalls—here’s what you might not expect.
1.Interest Rates Rival Credit Cards
Car title loans can reach interest rates of 15% or more annually, sometimes higher than standard credit card APRs if rolled over multiple times.
2.Risk of Losing Your Car
While it’s obvious from the name, many underestimate how quickly a repossession can occur if payments are missed even slightly.
3.Small Borrowing, Big Fees
Though these loans are often for modest amounts, added fees like origination or monthly surcharges pile up and inflate your overall cost.
4.Potential Negotiation Room
Some lenders might adjust terms if you show steady payment history or better credit. It never hurts to ask for a rate reduction or smaller fees.
5.Refinancing with Better Options
If your financial situation improves, consider switching from a title loan to a traditional one at a lower rate to protect your car and your wallet.