If you’re struggling to make ends meet and are considering a title loan to get some extra cash, you may be wondering if there’s a way to refinance your title loan. A title loan refinance can help you lower your interest rate, monthly payments, or both. It can also give you some much-needed breathing room if you’re in danger of defaulting on your loan or simply don’t want to pay the current sky high APR on the existing loan.
There are a few things to consider before you refinance your title loan, such as whether you actually qualify and how much money you could save. Keep reading to learn everything you need to know about refinancing your title loan in Texas.
A title loan refinance is simply a new payment term and loan payoff amount for your existing title loan. The new lender pays off your old title loan, and you make payments on the new loan according to the terms of the refinance.
In some situations, you can keep your original loan servicing company by working with them to bring down the interest rate or stretch out the payment term. As an 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 will bringing the APR to a more manageable amount.
There are several reasons why you might want to consider refinancing your title loan. The most common reason is to save money, either by lowering your interest rate or extending your payment term. This can help you free up some extra cash each month so you can better afford other expenses. We recommend to anyone considering a refinance that they 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 real numbers you can get a real time estimate of the value from a refinance title loan.
– To avoid defaulting on your loan. This is absolutely the #1 reason why we see people looking for a refinance title loan. 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 extend the amount of time you have to pay off the loan. Let’s say you need more time to pay off the loan and are having no trouble making the monthly payment. 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 important to understand how each one works.
Refinancing your secured title loan can also be a great move if you’re worried the lender will repossess the car. A title loan repossession is a worrisome outcome if someone defaults on their loan payments and you want to avoid it at all costs. Try to find a finance company that will satisfy the original loan obligation and locks in new rates and payment amounts.
The interest rate on your auto title loan is the percentage of the loan balance that you’re charged for borrowing the money. The higher your interest rate, the more you’ll pay in total over the life of the loan. In Texas, title loan lenders can charge an interest rate that’s in line with what you qualify for. That means you need to shop around 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 same requirements and hope to save money in the long run.
A title loan refinance is different from a title loan buyout in a few key 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 payoff your old title loan and you make payments on the new loan according to the terms of the buyout.
Second, with a title loan refinance, you may be able to keep your original loan servicing company by working with them to bring down the interest rate or stretch out the payment term. With a buyout, you’ll likely have to switch to a new servicing company.
There are a few things you’ll need in order to qualify for car title loan refinancing in Texas.
First, you must have made all of your payments on time and in full up to this point. If you’ve missed any payments or been late on any payments, you likely won’t be able to qualify for refinancing.
Second, you’ll need equity in your vehicle. That means your loan balance must be less than the value of your car. Most lenders will require at least 10% equity, but some may require more.
Third, you’ll need to have a steady source of income. This could be from a job, disability benefits, alimony, child support, or any other reliable source of cash.
Assuming you meet these requirements you should have no problem getting a title loan refinance near me in Texas. The amount of time it takes to be approved is much quicker than when you applied with your original lender and you may see the first title loan paid off in less than a day!