English 
Spanish Are you interested in getting a title loan but unsure how much it costs or how long it will take to pay off? If so, you're in the right place! At Hyperlend, we feel it's best to disclose all applicable rates and fees for a title loan before you sign off on a lending term!
Interest rates for car title loans depend on your vehicle's value and where you live, as each state has different restrictions and caps on secured loans. Still, the average annual percentage rate for a title loan can range from 20% to 175% for a vehicle valued at $5,000 or more.
Remember that the APR listed here reflects a percentage on a yearly scale, and the rates can be even higher in some extreme circumstances or if you fall behind on the payments. Therefore, paying back your title loan as quickly as possible is best to avoid excessive rates. There's no getting around the fact that title loan interest rates are high and, in some cases, can be double or triple what you'll see for a bank loan. While there's collateral backing up your title loan, these loans often don't come with a credit check and there's a fair amount of risk of default.
Interest Rates For A Hyperlend Title Loan
Hyperlend works with lenders that offer some of the lowest interest rates available. That means interest rates that start at 20% and go all the way up to 175%. Each state has different restrictions regarding secured loans, and most have interest restrictions that limit the amount of money you can borrow. In California, for example, the APR is capped at 36% for title loan amounts between $2,501 and $10,000. In other states, such as Georgia or South Carolina, there's no limit on interest rates and loan amounts, and you can generally borrow up to 60% of your vehicle's value.
While the APR for a car title loan may seem higher than that for other personal loans, you can be confident that we check these terms often and only work with state-licensed lenders. We'll work to get you matched with a lender that has the best rates currently available in your state!
Some states cap interest rates for auto title loans. With that in mind, we recommend using title loans only when necessary and seeking different forms of financial assistance like credit unions or short term installment lenders. Consider online title loans if you have no choice, as these loans have some of the highest interest rates and finance charges. Check the lending disclosures with any finance company you work with.
What Percentage Of Borrowers Will Pay Back A Title Loan
There's no denying that some title loans default, which ultimately means the lender repossesses your vehicle. However, over 70% of title loan customers will repay their loans, which shows that most customers use these loans for financial emergencies and pay off their loans quicker than the initial payment terms. A big reason customers pay back their loans is that they prioritize title loan payments over other unsecured loans, as they don't want to lose their vehicle. Still, most borrowers eventually pay back the amount borrowed and face little to no risk of a title loan default.
For those who default on their payment, that doesn't mean their vehicle will be repossessed! Even in this scenario, you can contact your lender and work out a payment plan to get back on track! Most states have title loan laws that limit what a lender can do if you fall behind on the monthly payments. For instance, in Texas and Oklahoma, a title loan company needs to wait at least 30 days to sell your vehicle after it's been repossessed to
Make Extra or Early Payments To Avoid Excessive Finance Charges
Yes, you can always repay your loan early, and that's always recommended if you can afford the extra payments. You can save thousands in interest by repaying your lender early by shaving a few months off the lending term.
If you're dealing with a high-interest loan, contact Hyperlend. We'll work with you to find a more manageable repayment term and help you find other lenders in your state offering low-rate secured loans.
What Else Know About Title Lending Interest Rates
Before you agree to take out a car title loan, it's essential to understand all the terms and conditions associated with the loan, including the interest rate and fee structure. What may be a high interest rate in one state may not be possible in another, as all states have different restrictions that regulate your rates and terms.
Another thing to remember about interest rates is whether or not there are any prepayment penalties. Most lenders should offer you a loan without charging fees for an early payoff! Seek out the nearest title loan companies licensed in your state and willing to disclose all the costs of your initial application.
Contact Hyperlend at 800-971-3022 to learn more about the interest rates associated with a title loan. We can also help you refinance your current title loan with a lower interest rate and potentially faster repayment term! Apply online or call us today!