A title loan is not like a traditional loan with a strict repayment schedule; a title loan is actually a title pawn in the state of Alabama, which is where our Panhandle Title branch is located. The cost of borrowing on a title pawn completely depends on how long your account remains active and how much you pay towards the pawn every 30-days when the payments are due.
Title pawns are meant to be short-term transactions that grant you easy access to cash you need for any reason. There are no upfront fees that are due at the time of your application. Your payment will be due 30-days after you receive your check. Customers have three options upon their first due date. The least expensive option is to pay your account back in full within the first 30-days. At Panhandle Title, we do have an exclusive option for first time borrowers that could allow your title pawn to qualify for our 30-days interest free promotion! If you received a 30-day interest free promotion at the time of opening your account with Panhandle Title and pay your account in full within the first 30-days, you will not pay any interest if you pay your account out in full! This promotion does extend through the life of your pawn, as long as the conditions for this promotion are met, we will waive the last 30-days’ worth of interest when you are able to pay your account out in full! To learn more about the qualifications of this special promotion, visit our disclaimer page here or call our friendly staff at (850) 785-2274!
The second option you have on your due date is to pay your minimum payment to extend your title pawn for an additional 30-days. Paying the minimum payment will just cover the accrued interest on your account for the additional 30-days. Choosing this option will likely be the most expensive option, depending up the following payments that you make on your title pawn as you are only covering the accrued interest and not actually reducing the balance of your account. We always recommend that customers pay more then just their minimum payment when they can to reduce the principal balance and additional interest that the account is charged for the consecutive 30-day periods that your account remains active.
The third option that you have on your due date is to pay more then the minimum payment on your account. Any amount that you pay over the interest will be applied to the principal balance and in return, reduce the amount of interest that you owe on your consecutive payments. When you open your account with Panhandle Title, our staff can help you with a suggested payment schedule for your title pawn that would show you an amortization of your suggested repayment on your title pawn with your requested payment amounts and time frame to come up with a repayment on your title pawn that allows you to fit your title pawn repayment into your budget and schedule! Although any amortization repayment plan, we offer is not required, at Panhandle Title, we want to help you understand the repayment options that you have on your title pawn if you are worried about not being able to pay it back within the first 30-days or falling into the only paying the interest payments.
Essentially, unless you receive our 30-day interest free promotion, the cost of borrowing with a title pawn has a 25% monthly compounding interest rate, which is essentially a $25 finance fee for every $100 borrowed, every 30-days. Below is a table of what you can expect to pay with a title pawn with or without our 30-day interest free promotion.
| Without 30-days Interest Free Promotion | With 30-days Interest Free Promotion | |||
| Principal | Interest | 30-day Payoff | Interest | 30-day Payoff |
| $200.00 | $50.00 | $250.00 | $0.00 | $200.00 |
| $300.00 | $75.00 | $375.00 | $0.00 | $300.00 |
| $400.00 | $100.00 | $500.00 | $0.00 | $400.00 |
| $500.00 | $125.00 | $625.00 | $0.00 | $500.00 |
| $600.00 | $150.00 | $750.00 | $0.00 | $600.00 |
| $700.00 | $175.00 | $875.00 | $0.00 | $700.00 |
| $800.00 | $200.00 | $1,000.00 | $0.00 | $800.00 |
| $900.00 | $225.00 | $1,125.00 | $0.00 | $900.00 |
| $1,000.00 | $250.00 | $1,250.00 | $0.00 | $1,000.00 |
| $1,250.00 | $312.50 | $1,562.50 | $0.00 | $1,250.00 |
| $1,500.00 | $375.00 | $1,875.00 | $0.00 | $1,500.00 |
| $1,750.00 | $437.50 | $2,187.50 | $0.00 | $1,750.00 |
| $2,000.00 | $500.00 | $2,500.00 | $0.00 | $2,000.00 |
Still have questions? We have answers! Call our friendly staff at (850) 785-2274! We look forward to assisting you!