Since a title loan is meant to be a short-term option, the cost of repayment is ultimately dependent upon the borrower and how long they have an outstanding balance with Lake Title. Title loans are meant to be 30 day transactions, but can be extended for however long is needed or renewed at any time, as long as the borrower is paying the accrued interest for the transaction in order to extend the transaction for an additional 30 days. At Lake Title, we encourage our customers to pay over their minimum payment in order to lower their principle balance as well as their additional 30-day finance charge and total payback amount.
The standard finance fee with a title loan for a 30-day period is typically $25 to every $100 that is borrowed. If you borrow $500, you will have a finance fee of $125 every 30 days. When your 30-day period is up, you have the option to pay the full $625 back to pay off your account or you are able to pay the $125 interest charge to extend the transaction for another 30 days. If you choose to pay over your $125 interest charge, anything over that $125 will go towards your principle and work down your next finance charge and full pay off balance. For example, if you choose to pay $325 instead of $125, you will put $200 towards your principle balance. That will bring your principle balance to $300 and your next finance charge at the end of 30 days will go down to $75, with your payoff only being $375.
Here at Lake Title, we also offer an awesome 30-Day Interest Free* program which could be an awesome thing for our first-time customers! The awesome thing about our 30 day interest free program is that we offer the promotion for the entire life of the loan, not just your first 30 days like some companies! If you are unable to pay it all back within the first 30 days, you can make your minimum finance charge and at the end of your next 30 days, you can still pay off without paying your interest charge for that month!
*30-Day Interest Free: Not all customers will qualify for the 30 Days Interest Free Promotion. In order to qualify for the 30-Day Interest Free Promotion, you must meet the following criteria: 1) Have a lien free title to your vehicle that is valued at least $1,000; 2) Have verified, documented income of at least $1,000 a month after taxes; 3) Provide an acceptable proof of residency such as a service bill or bank statement in your name. You must open an account with Lake Title in order to receive the promotion. Promotion must be requested to a Lake Title representative prior to the completion of your Motor Vehicle Pawn Transaction in order to qualify. Promotion only valid (1) time per customer.
If you still have any questions, we are here to help! Please reach out to one of our friendly representatives in the office at (352) 692-2274 with any questions you may have, and we will be happy to get you the answers you need!