You were in deep trouble and got an auto title loan to help you out until your finances stabilized. That was then. While you were immensely grateful for the loan, you now realize that the payments or terms have become unmanageable, or you have found that you need more money. So you’re wondering if you can refinance your title loan. Maybe you can – but keep reading for more information.
What are automatic securities loans?
These are loans that use car titles for security. In other words, the title of the vehicle serves as collateral. The loan amount available depends on the existing equity in the vehicle. Approval rates are high compared to other loan options since qualification requirements are generally flexible. For example, you don’t need good credit.
How do they work?
When your vehicle is pledged – which is essentially the case – the lender becomes the lien holder. Then you make payments until title loan is paid.
How do these loans compare to other options?
Well, if you can get a bank loan, go for it. You’ll need great credit, of course, as well as patience, as the approval process can be quite tedious. It may not work in an emergency.
Then there are payday loans, which are short-term loans meant to bail you out until you get your paycheck. However, this may not work for you if you need more than a few hundred dollars, or if you won’t be able to clear your balance within a few weeks. Plus, you might end up paying hefty interest charges that can hinder repayment.
What’s so great about title loans?
We’ve covered a few, but here are the main ones in a nutshell:
- Affordable payments. The last thing you need after an emergency are stressful payments. Generally, title loan payments are manageable. If you’re having trouble making them, keep reading for more information on possible refinancing.
- More time to repay. You may need more time than, say, a payday loan provides for repayment. In this case, a title loan may be the ticket. If you need more time, you may need a title loan refinance. Refinancing is the process of reviewing and replacing the terms of an existing credit agreement, usually for a loan or mortgage.
- Competitive interest rates. The rates for other loan options can be prohibitive. Interest rates for title loans are established based on up-to-date market analysis.
- quick money. If you’re considering an auto title loan, you need help right away. Lenders like LoanMart know this, and you can even have your funds within 24 hours of approval.
Do I have a chance of being refinanced?
If you find your payments or terms unmanageable, or want to borrow more money, or don’t care about your lender’s customer service, yes, a re-fi is possible.
If you’re hoping for a lower rate or payment, you can contact your lender to see if they’d be willing to change your terms. If your payment history is in sterling, your lender may simply lower your rate, which will lower your payment.
If your current lender can’t help you, you may be able to refinance your loan elsewhere. However, you must clear your existing loan first. State laws vary, but you can either get rid of the balance yourself or find out if another lender will take care of it for you.
You’ll likely have many refinance options, but ChoiceCash Auto Title Loan, which is operated by LoanMart, is the only lender that can potentially lower your monthly payment. A loan from ChoiceCash can erase your current loan and allow you to borrow a little more.
So, can you refinance your title loan? You probably can, but you should go through ChoiceCash for a lower payout – and more cash in your pocket.