If you’re having trouble making monthly payments on a title loan, you should refinance. 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 the payments and facing a scenario where the vehicle may be repossessed.
Keep reading to learn everything you need about refinancing your title loan in Texas.
Refinancing a car title loan gives you a new payment term 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.
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 3-year title loan with an APR of nearly 100%. You may be able to work out a refinancing agreement with the same company that would increase the payoff time to 4 years, bringing the APR to a more manageable amount.
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 afford other expenses better. 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.
– To avoid defaulting on your loan. This is the #1 reason people 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 arraignment.
– To get rid of a high interest rate. Did you know the interest rates on a bad credit title loan can be very high? Once you’ve made on time payments there may exist an option to work with a new finance lender and get an APR or payment term that fits your budget.
– To get a long repayment term. Perhaps you want more time to repay the loan, or you’re looking for a lower monthly payment. A refinance can stretch out your payment term to help out your budget. It may make sense to stretch out the car title loan term by a few months to handle 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 have a big impact on your monthly payment amount, so it’s essential to understand how each one works.
A title loan repossession is problematic if someone defaults on their loan payments and you want to avoid it at all costs. Find a finance company to satisfy the original loan obligation and lock in new rates and payment amounts.
Expect an APR between 25% and 125%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.
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 make payments on the new loan according to the buyout terms.
You must have made timely payments with your current title loan lender. If you’ve missed any payments or been late, you likely won’t be able to qualify with Texas Title Loans to lower the monthly cost or rate on your existing loan.
You’ll need equity in your vehicle to use as collateral for a title loan refi. That means your loan balance needs to be lower than the current resale value of your car.
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.
If you meet these requirements, you should have no trouble qualifying for a refinance with Texas Title Loans. Apply online or call 844-243-3195!