Quick Relief With A Title Loan Buyout
Did you take out a title loan at some point to pay for a financial emergency? Title loans can be helpful, but we often see borrowers who get in over their heads with payments or interest rates they can't afford. The last thing you want to do is take out a loan to pay an urgent bill, only to be stuck with more debt from that title loan. Not only that, but title pawning your vehicle means you're authorizing your lender to take your vehicle if you fall behind on the payments. Sometimes, a title loan is your last resort to borrow money, but it helps to know your options if you're ever in danger of defaulting on your loan.
A title loan buyout may be an option for someone who's overextended their monthly payments, or worse, for those who have already defaulted on the payments. You won't want to deal with a vehicle repossession, but that's the next step after a default, and a buyout can save you from losing the vehicle. With a title loan buyout, you find another lender to buy out or pay off the original loan.
Qualify For A Title Loan Buyout - What's Required
To qualify for a title loan buyout, you must have an existing car title loan from another lender that is open to being bought out or taken over. Even if you're behind on payments, you're unlikely to be approved for a buyout if the vehicle has already been repossessed. Your title loan must have originated in Texas, and you can't be in bankruptcy or dealing with any other serious credit issues.
While we won't focus primarily on your credit score when pre-approving you for a title loan buyout in Texas, many cities, such as Laredo and San Antonio, have local lending ordinances that require lenders to verify your income. These regulations ensure your new buyout loan does not exceed 3% of your gross annual income as required by law.
In many Texas cities, a buyout or new title loan that originates within 7 days of paying off a previous loan is considered a "renewal". This would then count towards your city-mandated limit of 3 renewals. Our lending partners in Texas will ensure that any prospective title loan buyout complies with these local "cooling off" periods.
How Is A Title Loan Buyout Different From A Refinance
While both of these terms are often used to describe the same thing, they serve different purposes depending on your financial situation. In many Texas cities, both are subject to the same consumer protection laws.
The first difference is that when you refinance, you start a new agreement that replaces your old one. A car title loan buyout is much the same, but it involves a new lender stepping in that pays off your debt with the existing lender and that ensures you have only one loan moving forward.
When you refinance, you should get a lower monthly payment or better repayment terms for a title loan with no credit check. A buyout may offer less favorable terms than a refinance, but it can be huge for someone already behind on their payments.
Title Loan Relief Assistance With A Buyout
A buyout of an existing loan offers a chance to get real-time relief on your monthly payment and APR. People turn to a new lender when they need assistance, and the title loan relief they are receiving isn't enough to get back on track with the monthly payments.
Title loan buyouts can provide real-time relief on your monthly payment and APR, so people turn to this type of assistance. When you are current on payments, a buyout can be the best way to lower costs and secure a shorter repayment term.
The fact is, true relief with a title loan buyout comes from more than just a lower rate. In cities with local lending ordinances, all payments on your "bought-out loan must reduce your principal by at least 25%. This prevents you from being stuck in a situation where you make interest-only payments.
Car Title Loan Buyouts & Transferring My Lien
When you took out the initial car title loan, you likely signed over the car title to your lender. That means they have a lien on the vehicle you're currently driving and are the legal owner. Your lender is the sole lienholder on the vehicle, and they call the shots on what happens to your car. If you stop making payments on the title loan, your lender may eventually repossess the vehicle after providing notice and required waiting periods.
When you turn to a car title loan buyout, the new lender will want to transfer their lien to the new title. This means that your old lender's lien will be released, and they will no longer have any claim to the car. A title transfer can take time; this process depends entirely on the Texas DMV. Most customers can expect a title transfer to be completed within 1 to 2 business days, but it can take longer over weekends or if your current lender is not receptive to a buyout.
I'm Ready To See If I Qualify For A Title Loan Buyout Online
Most states allow loan buyouts and refinances, and it pays to see the available terms for a title loan buyout in Texas. You may be surprised at how much relief a title loan buyout can provide! Contact Texas Title Loans to see how much you'll save with a loan buyout! We won't be the ones buying out your loan. Instead, we work with multiple lenders across Texas and find you the best repayment terms among companies looking to buy out your loan. Call us at 844-243-3195 to start the buyout process today!