Refinance Your Car Title Loan In Texas
If you're having trouble making monthly payments on a title loan, you should refinance or at least see if your lender is willing to lower your interest rate. By refinancing your loan, you should be able to reduce the monthly payments and get a more manageable APR. A title loan refinance can be a lifesaver for someone behind on payments and facing the risk of vehicle repossession.
At Texas Title Loans, we offer pre-approval for refinancing options for qualified customers in Texas. Not only can we help reduce your APR, but we can also get you a quicker payoff term by renegotiating your loan payments. Some customers come to us with title loans set to be paid off in over 4 years! With a refinance or title loan buyout, you can cut that payment term in half and possibly have a lower monthly payment! Call Texas Title Loans at 844-243-3195 to see how much faster you can pay off your loan by refinancing.
What To Know About A Title Loan Refinance
Refinancing a car title loan gives you a new payment term and a loan payoff amount for your existing title loan. The new lender pays off the current balance, and you get new monthly payments and hopefully a lower interest rate. Refinancing is possible for anyone in Texas who has an existing title loan. Your original lender may not be happy if you're looking to pay off the loan immediately. But there's not much they can do if you sign a contract with no pre-payment penalties and find a lender willing to buy out your existing loan.
Sometimes, you can keep your original loan servicing company by working with them to reduce the interest rate or stretch out the payment term. For example, let's say you originally had a 36 month payment term from a car title loan in Texas with an APR of nearly 100%. You may be able to work out a refinancing agreement with the same company that extends the payoff period to 4 years, bringing the APR down to a more manageable level.
Why Would I Refinance My Vehicle Title Loan?
You might want to consider refinancing your title loan for several reasons. The most common cause is to save money by lowering your interest rate or extending your payment term. This can help you free up some extra cash each month to better afford other expenses. We recommend that anyone considering a refi start with our car title loan calculator to see exactly how much they can save with a new lender when factoring in the updated lending terms. By looking at actual numbers, you can get a real-time estimate of the value of a refinance title loan.
Other Reasons To Apply For A Refinance Title Loan
- To avoid defaulting on your loan. This is the #1 reason people in Texas are looking for a title loan refi. Borrowers fall behind for various reasons, and it makes sense to get back on track with a new lending arrangement.
- To move on from high interest rates. Did you know the interest rates on a bad credit title loan can be very high? Once you've made on-time payments, you can work with a new finance lender and get an APR or payment term that fits your budget.
- To get a more favorable repayment term. Perhaps you want more time to repay the loan, or you're looking for a lower monthly payment. A refinance can extend your payment term to help your budget and get you out of debt sooner. It may make sense to extend the car title loan term by a few months to cover other emergency expenses.
In many cases, an online title loan refinance can save you money by lowering your interest rate or extending your repayment term. These two factors can significantly affect your monthly payment, so it's essential to understand how each works.
What Interest Rate To Expect With An Auto Title Loan Refinance In Texas
When refinancing an existing title loan, the APR can vary widely based on the lending terms, borrower qualifications, and the vehicle's current value. The interest rate for a title loan refinance should always be lower than what you have with your current lender. That means you must shop for the best financing rates and find a lender that won't hit you with high fees and other charges. When looking for a company to refinance a car title loan, you should look for the exact requirements and hope to save money in the long run. Yes, even after refinancing, these rates may look high compared to other loans that depend on your credit score. But remember, your new lender is still taking on risk as they're likely not checking your credit score and offering a loan that depends solely on the equity from your vehicle.
How Is Refinancing A Title Loan Different From A Title Loan Buyout
Refinancing a title loan differs from a title loan buyout in several ways. First, with a title loan refinance, you're simply taking out a new loan to pay off your old title loan. When you work with a Texas company that buys out your current loan, they will pay off your old title loan, and you will make payments on the new loan according to the buyout terms. Another difference is that refinancing can lead to only a lower interest rate or a faster payoff term. With a buyout, you can get all new terms and a brand new loan offer from a different lender.
How To Quickly Qualify For Title Loan Refinance In Texas
Even if you've missed any payments or been late, you can still pre-qualify with Texas Title Loans to lower the monthly payment or rate on your existing title loan.
You'll need equity in your vehicle to use as collateral for a title loan refi. That means your loan balance must be lower than your car's current resale value.
Like when you first applied for a title loan, you need proof of income to qualify for a title loan refinance. This could be from a job, savings account, bank statements, or pay stubs.
You should have no trouble qualifying for a refinance with Texas Title Loans if you meet these requirements. Apply online or call 844-243-3195 to see if you can reduce the interest rate on your auto title loan today!