When researching title loans, you may have come across the term âballoon paymentsâ and thought to yourself: what are title loan balloon payments? Because it can put the borrower at risk, LoanMart does not do balloon payments. Read more on balloon payments and why they can put the borrower at risk.
How Title Loan Balloon Payments Work
Balloon loans or payments are loans that only require borrowers to pay interest for the first couple months or years of payments. You pay the interest thatâs accruing as you have the loan, which overall creates a smaller loan payment.
The problem with balloon payments is that lenders will want you to pay off the principal amount eventually. This could take effect a couple months or years after taking the loan out, and many lenders require you to pay off the loan all in one sitting. That payment could be thousands of dollars all at once, which is hard to accomplish in one sitting. Balloon payments are generally riskier than traditional title loan payments.
Lenders will typically promote title loan balloon payments by saying you can just refinance your loan before the one-time payment is due. But, what if you canât manage that? After spending months to years paying interest for the loan, youâll have to refinance and potentially pay a higher payment to include interest and the principal amount for another couple of months or years. Then, youâre stuck with the loan for longer than you should be.
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How Traditional Title Loan Payments Work
Traditional loan payments for title loans work like any other loan that you may take out. You pay the interest and the principal amount every month over the course of a couple months or years. With this set up, you are scheduled to pay off your title loan over the amount of time that your loan terms specify. Unlike balloon payments, you donât have to pay the entire balance all at once.
Did you know LoanMart does traditional title loan payments? We understand how risky balloon payments can be, and they could potentially put you in more financial danger than you might have been at before! We do tradition title loan payments because we know how much easier it is to just make a monthly payment that goes towards your interest and your principal balance. That way, youâre not stuck with the title loan for longer than necessary.
LoanMart Title Loan Payments
Just like a traditional loan, youâll receive billing statements once a month for your title loan from us. It will contain important information about your title loan like:
- Payment history
- Account information
- Billing information
- Payment methods
- Any important messages
We make sure you stay up-to-date and informed on your title loan.
Multiple Payment Options
Once youâve submitted your loan information and youâve been approved, we work with you to create a payment plan that fits with your lifestyle and budget. We do our best to ensure that everyone involved gets a good deal! To pay back the loan, we offer many payment options:
- Pay by phone with a credit or debit card
- Set up automatic payments from your checking account
- Pay online with the My Account tab
- Pay on your phone using the LoanMart app
- Visit a participating location in-person to pay
Refinancing with LoanMart for Better Payments
If youâve fallen victim to a title loan that had balloon payments, itâs not too late to refinance your title loan with LoanMart1! Donât get trapped in the interest payment window, and then find yourself scrambling for money when itâs time to pay all of it up front. We may be able to give you the time you need and the strategy to help you succeed in paying off your title loan1. Applying to refinance is similar to applying for a new title loan!
How to Apply
Our application process is easy both for brand new title loan customers and those looking to refinance from another title loan lender. You just have to follow these three quick steps:
- Apply online, over the phone, or at a participating store.
- Submit your documents.
- Collect your funds, or if youâre refinancing, your funds will go to your current lender to pay off the balance1.
