How Can I Pay My Loan Off Faster?
Hello again. Here with another “Commonly Asked” for you today. How can I pay off my loan at a faster rate? There are two main ways that I will explain for you.
1) Shorter Terms.
2) Making Additional Payments.
1) Shorter Terms:
At Auto Equity Loans, we have different regulations for different states. However, our loans typically range from 6-24 Months. Why do we cap them at 24 Months? Well because the longer the loan is written for, the more interest you will end up paying. So yes, the minimum payment may be lower for a 24-month term, but you could reasonably sign for 12-month payments and pay off in ½ the time. The lower payment is nice but we want you to be in a loan you can feasibly pay off in two years or less with a reasonable minimum payment! This is why we have the best interest rates around! While in office, the loan officer will go over your repayment options with you. They will know the regulations of the state and work with you to get the best term/payment option for you.
2) Making Additional Payments:
You may decide that the long-term and lower payment is better for you based on your cash flow. The nice thing about this is that you can make additional payments on your account. This IS NOT a Partial payment. To clarify, WE DO NOT ACCEPT PARTIAL PAYMENTS. However, if you can make an additional amount on your loan in between payments, you can do that. Example: You make your payment of $250 but two weeks later you have a good paycheck and you can pay more towards your loan so you apply an additional $100. It will go to the interest that you have accrued in the 14 days and any extra will go to Principle. In two weeks, your full $250 payment will be due. How is this beneficial though? Well, instead of just making your $250 payment you will have paid an additional $100 on the loan knocking that principal balance down and lowering the amount of interest that will be accrued for the next month allowing you to pay off the loan faster. Do this whenever you can and you may just knock that 18-month term into a 12-month term!
Quick loans are possible, you just need to have the right Title Loan Lender. Remember, with Auto Equity Loans, we know that You Deserve Better So there are no early repayment fee’s. If you’re a current client give us a call to see the best option for your loan. If you’re not a client yet or have a title loan with another lender give us a call to see how we can help you.