Ultimately, the cost of borrowing on your title pawn with Panhandle Title will be dependent upon how long you take to pay back the title pawn. Title pawns are meant to be short-term, 30-day transactions in which you pay a finance fee depending upon the amount of money that you borrow. If you find you are unable to pay back the title pawn within the first 30-days, you can pay the minimum payment, which is the interest accrued on the title pawn to extend your title pawn for an additional 30-day period. You can keep paying at least the minimum payment every 30-days, as long as you need, to keep the account active but just keep in mind that the longer you take to pay off your title pawn, the more that the total cost of borrowing on your title pawn will be since the interest is accrued for each 30-day period.
The finance fee of title pawns is based upon a 25% finance fee that compounds every 30-day period that your account is open, so you are essentially paying $25 for every $100 borrowed or outstanding every 30-day period. Whatever you are able to pay over the minimum payment will reduce the outstanding principal balance on your title pawn and in return, will reduce the amount of interest that you owe for the consecutive 30-day periods.
At Panhandle Title, we do have an exclusive promotion available to first-time customers that allows your title pawn to potentially qualify for a 30-day interest free promotion. This promotion, if you qualify, is valid for the life of your title pawn so you do not have to pay the title pawn back in full within the first 30-days in order to take advantage of the promotion! To learn more about Panhandle Title’s exclusive 30-day interest free promotion and the qualifications you would need to meet to be eligible, learn more here!
We look forward to assisting you at Panhandle Title! Please call our staff directly at (850) 785-2274 for any additional questions that you may have!