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 open to having the loan bought out or taken over. Even though you can be behind on the payments, you won’t likely 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.
Your new lender will have similar requirements to what you’d expect when applying for a title loan the first time. That means you need equity in the vehicle, and you can’t be “upside down” on the payments. A standard credit check won’t be required, but we need to look for current bankruptcies and ensure you have enough income coming in monthly.
One last requirement for a title loan buyout is that this can’t be a new loan originated within the last 3 months. Each lender has different restrictions on this, but generally, you’ll need to have made a few on-time payments to your original lender to qualify for a buyout.
How Is A Title Loan Buyout Different From A Refinance
Both options allow you to replace the contractual terms of your original financing agreement. However, a title loan buyout does much more than lower your interest rate by refinancing.
The first difference is that when you refinance, you take out a new loan to repay your old one. Even though you only have one pink slip, you will have two outstanding loans simultaneously. A car title loan buyout, on the other hand, is when the company buys out your existing lending obligation. You will only have one loan outstanding after the buyout.
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. The new lender will want to see that you have maintained a decent credit score and have no more than two loans outstanding to approve your request.
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 the payments, a buyout can be the best way to lower the costs and quickly get a quicker repayment term.
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 title’s 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 will start 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. 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 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 refinance, 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 same day buyout! We won’t be the ones buying out your loan. Instead, we work with different lenders throughout Texas, and we’ll find you the best repayment terms among multiple companies looking to buy out your loan. Call us at 844-243-3195 to start the buyout process today!