A title loan refinance allows you to get a better deal with new terms and payoff amounts on for your loan. A lending company will check your credit and pull a new report to make sure you aren’t getting another title loan. New title companies have popped up throughout the country, so many people who have taken out title loans are now being offered lower interest rates through refinancing options.
How Does A Car Title Loan Refinance Work And What Are The Benefits?
The benefits that come with refinancing vehicle title loans are clear, as you’re going to save a lot of money in both the short and long run. When refinancing a loan, you might be able to save money on interest rates or have an earlier payoff date. It’s not unusual for title loans to have double-digit interest rates, so lowering that number can save thousands of dollars in just a year or two. You could also cut out years off of your estimated payoff time.
How Much Money Can I Save By Refinancing A Title Loan?
You can save a lot of money by refinancing down to lower terms with a new auto title loan. You might be able to lower the interest rates and save thousands on payments and the overall principal balance. With many companies, you also make one monthly payment instead of making weekly or biweekly payments. These loans often require shorter payoff times as secured loans typically last for six months before they’re paid off.
What Is Required To Get My Car Title Loan Refinance Started?
With most lenders there is no credit check and that’s the same with a refinance. You will likely need to be current on existing monthly payments and have a clear pink slip. There is no checking your current credit score when refinancing and requirements are minimal. This can makes it easier for people who have had title loans in the past to get re-approved.
How Much Will My New Monthly Payments Be?
One of the benefits of refinancing a title loan comes down to the fact that you can eventually make one monthly payment instead of making weekly or biweekly payments as the current contract require. You can also gain an earlier payoff time by refinancing. It’s not unusual for title loans to last for six months before they’re paid off, but with a refi this time period could be reduced down to 30% or more in some circumstances. It all depends on what your current rates and payoffs are and how much you can save with the new financing terms.
Is There Ever A Time When I Should Not Refinance My Current Title Loan
Yes, much like when you consider a refi on a house or car payments you may already have the lowest rate and payoff possible. In title loans, the payout sometimes does not go as far as you might think so you have to consider your options. As lenders have been popping up all over the country, many people who have taken out title loans are being offered lower interest rates through different options. You should also consider a new company if your lender has violated any terms of the agreement or if it feels wrong for you to pay weekly or bi-weekly installments when other title loan companies offer monthly repayments.
Another benefit of refinancing is you don’t need to have good credit. We all know that bad credit is not necessarily a reason to get turned down for a title loan refinance. Contact us today to get started on your application to improve your current terms. You’re going to save a lot of money in both the short and long run. When refinancing a title loan, you might be able to save money on interest rates or have an earlier payoff and that’s the most important factor when it comes to your finances!