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Is there any prepayment penalty for title loan?
#11
From what I have read about title loans and having prepayment plans, its not always feasible anymore in the sense that you could get to pay both the interest and the loan amount no matter whether you decide to pay early or plan paying as planned. I always see that as a good way for the company and banks lending not to lose at the end.
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#12
Nop, title loans do not except that you provide the document for the vehicle, proof of ownership and you should show that you are capable of paying back the loan.
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#13
I think there is none. Availing title loans require documents that prove you can pay for your loaned money.
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#14
(01-20-2018, 09:30 PM)AmieBotella Wrote: From where I live, for title loans, the title is already your collateral. Most companies do not charge pre-payment anymore. But there are some, it really depends on the company you're applying a loan. But I am curious to know that in the U.S., it depends on which state you live in an Id there are rules regarding this. This is not the case in my country and I don't know if it's a good thing or bad. But when I think about the general idea of loans here, it's a little bit difficult to get approved compared to other countries, I think.

Which country are you staying that getting a title loan is quite difficult? I still look as the title loan as one of the easiest way to get loans from banks that offer it. When it comes to the penalty for repayment, it is said that most governments doesn't bother about that since they now understood the need to protect the borrowers. 
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#15
It depends on the loan in question, there are some you pay bit by bit and also some you pay installments for, if the loans are installments then you can't do pre-payment on it(which is the best). I just asked a friend of mone here, he said that there were no pre-payment penalties he collected back then, the interests is same with title loans.
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#16
Im in with LoanMart recently, there are absolutely NO pre-payment penalties for those customers who would like to repay their car title loan before the contract final payoff date.


LoanMart does not penalize pre-payments because it is a win-win situation for everyone: the client is able to get the whole business of paying off the loan out of their head and LoanMart is able to secure its money back while being able to be of assistance to its clients, who can now enjoy a clean slate for when they make another car title loan application.



There is a difference between overpayment and pre-payment. Both have no penalties but let’s look at both so you understand what we are talking about.



PRE-PAYMENT


When you took out the loan you had a set date for the final payment of the loan. The reason for this is that OUR loans do have an ending point. If we set the loan duration to 2 years for example and you made each monthly payment on or before the due date over the two years, then you would be done!



Some customers want to pay the loan off earlier and that is GREAT because interest still is being charged while you have the loan out but once you stop, the interest stops as well. This is extremely helpful because you could literally save thousands of dollars.



Of course, there would NOT be a penalty for doing this.
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