One thing that you seriously need to consider when applying for a Phoenix car title loan is the interest rates a lender charges. Being a short-term title loan, the amount of interest auto title loan lenders charge is extremely high and it is appropriate that you identify a lender that charges reasonable interest rate. You need to note that a reasonable amount of interest rate does not necessarily mean an affordable title loan. Other factors such as loan duration can also increase the amount of interest rate you are bound to pay on a vehicle title loan.
One of the methods to ascertain the amount of interest rate a lender charges is to make use of the free Phoenix auto title loan interest calculators available online. Most car title loan services provide visitors to their sites with a loan interest rate calculator as a tool to help them in calculating interest rates that they are bound to pay with their title loans.
To effectively make use of any Phoenix car title loan interest calculator online, you seriously need to understand all the variables that relate to your loan payment schedule. Of the variables, the rate of interest is the most important. Usually expressed in percentage form, the interest rate informs the extra money you will have to pay over your principle Phoenix car title loan. The extra amount is usually calculated in a way that it is spread equally throughout a loan period, expressed in months.
The principle car title loan amount is the other essential variable. This is the amount of loan advanced to you, of which you are obligated to pay part of it monthly. Because you are bound to pay the title loan monthly, the amount of principle car title loan is bound to reduce as months go.
The other important aspect that is useful in using a Phoenix auto title loan interest calculator is the loan payment period. This is usually indicated in a loan payment schedule. You are aware when the first and last loan payments are due. While a staggered loan payment period means higher amount of extra money, you are bound to pay as interest, a short car title loan payment period lowers the interest rate, in effect reducing the extra money you are bound to pay over the initial loan principle amount.
With knowledge of the above three variables, you can easily use a Phoenix car title loan interest calculator online. With your focus on the loan payment part, enter the initial principle loan amount that a lender is willing to advance to you. You also find a section (box) to enter the interest rate (it is usually annual interest rate). You also need to enter the payment period (usually in months) in a separate box. Entering these variables in this manner should automatically give you the amount that you are bound to pay on a monthly basis for the loan period. In order to obtain the correct monthly figure, it is important that you subtract any upfront costs you may have paid as such go toward reducing the initial principle loan amount.