How to Compare Title Loan Costs
The following calculator allows users to enter any monthly interest rate and loan term to fully compare the monthly payments to the same loan from Fast Title Lenders. It goes a step further than our other car title loan calculator by showing the full amortization of not only our loan but the comparison loan. We hope this help with your research on the cost of a title loan to determine if one is right for you.
Step 1: Enter the loan amount you plan on borrowing
Step 2: Enter the interest rate for the loan you want to compare to
Step 3: Click "calculate" and view the results.
The results will show you each month's payment and how it breaks down into Principal and Interest. The totals for each are also shown at the bottom of the table. This information allows you to see how a loan with us compares to a competitor with a different interest rate.
How does Interest work for a Title Loan?
For car Title Loans in Virginia the Interest is charged as simple interest just like many other monthly term loans. Title lenders in Virginia are not permitted to charge interest in advance and are not permitted to charge a pre-payment penalty. Title Loan interest is usually quoted in Monthly terms vs APR which can be confusing. To estimate the APR you can multiply the monthly rate times 12 (12 months in a year). For example a loan with us at 8% monthly rate is 96% APR.
A common mistake when calculating interest is multiplying the APR times the amount borrowed. This would be correct if one single payment was made at the end of exactly one year. Since monthly payments of both principal and interest a paid each month, the loan is amortized. You only pay interest on the principal amount you owe. As you make payments each month, the principal is reduced and the interest charged for the following month goes down. If you calculate a loan below you can see each month how much goes towards interest and how much goes towards principal.