Did you take out a title loan at some point to pay for a financial emergency? Secured loans are helpful but only with the right lender, especially with the best financing terms for your situation.
When it comes to title loans, there may come a time when you can’t make your payments anymore. For example, you may be struggling to keep up with the monthly installments, or you may have lost your job and don’t know how you’re going to pay back the loan. If this sounds like your current situation, you may be considering a title loan buyout.
A title loan buyout is when another company buys out your current title loan. The main reason someone considers a buyout is that they may be struggling on the initial loan and want to move on to a new lender. This can be a great way to get relief from your debt and avoid being taken to court or having your car repossessed.
To qualify for a title loan buyout, you will need to meet specific requirements. The most critical requirement to buy out an existing loan is that you must have a secured loan with another lender. You must also be current on your payments and have no more than two outstanding loans. In some cases, you can get relief on the existing loan if you’re behind or if it’s been repossessed, but this is not common as it will be challenging to find a new lender if the existing loan is in default.
The company that buys out your loan will need to do a title search of the vehicle to ensure that you are the car’s legal owner. They will also need to check your credit history to confirm you are a good candidate for a buyout.
If you meet these requirements, the title loan buyout company may be able to offer you a lump sum payment that will pay off your original title loan. This can be a great way to get relief from your debt and avoid being taken to court or having your car repossessed.
Both of these options allow you to replace the contractual terms of your original financing agreement. But, there are several key differences between a title loan buyout and a title loan refinance.
The first difference is that when you refinance, you are taking out a new loan to pay off your old one. This means that you will have two loans outstanding at the same time. A car title loan buyout, on the other hand, is when the company buys out your existing lending obligation. This means that you will only have one loan outstanding after the buyout.
When you refinance, you may be able to get a lower monthly payment or longer repayment terms for a title loan with no credit check. A buyout usually offers less favorable terms than a refinance, so it’s important to compare all of your options before deciding if a buyout is the best choice to get relief with your existing finance company.
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. The new lender will want to see that you have maintained a decent credit score and have no more than 2 loans outstanding to approve your request.
When you are current on all of your payments, this is the best time to approach a title loan buyout company. You may be able to get a lump sum payment that will pay off your original title loan. This can be a great way to get relief from your debt and avoid being taken to court or having your car repossessed.
Title loan buyouts can provide real-time relief on your monthly payment and APR, which is why people turn to this type of assistance. When you are current on all of your payments and have a plan in place to get new lending terms, a buyout may be the best choice to get relief with your existing finance company. Comparing a title loan refinance with the option to replace an existing loan can help you decide if this type of assistance is the right choice for you.
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 they are the legal owner of the title. If you stop making payments on the title loan, your lender will start the process of repossessing the car.
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. This is an important part of the buyout process, as it ensures that the new lender is now the legal owner of the title and the car.
If you’re ready to see if you qualify for a buyout on a bad credit title loan, we can help. Simply enter your information into our online form and we will connect you with a company in Texas that can help. We can help those who reside outside of Texas as well. Most states allow loan buyouts and refinances and it pays to see what terms are available. You may be surprised at how much relief a title loan buyout can provide!
Submit an online application to see how much money you can get for your car title!