Car Title Loans can be expensive forms of credit. Additionally, costs can vary widely from lender to lender. Many times they are used for emergency expenses and, at the time of the loan, borrowers sometimes rush into the loan without fully examining the repayment terms. This can lead to a very expensive loan with excessive interest charges. There is, however, an option to lower your payment if you rushed into a title loan with a very high rate.
One way to reduce your monthly payment, and total interest charges, is to refinance your title loan. If you do so with a lower rate, and a better title loan company, the savings can be significant. Refinancing a car title loan can save hundreds of dollars a month.
Car Title Loan Refinance Requirements
To refinance a car title loan, you will usually need to meet some general requirements. It is important to note that not all states allow title loans to be refinanced. You will need to still own the vehicle, provide proof of insurance, proof of income, and a valid drivers license. To see if refinancing your title loan is an option, simply find a lender with a lower rate and contact them.
What if my State doesn’t allow Refinancing?
If you live in a state that does not allow you to refinance your title loan you will need to close out the current loan before getting another title loan. If you are stuck in a very high interest loan and want to lower your payments, first get a few quotes from other lenders. Use these quotes to determine how much you can save with another title loan with a lower rate.
If the amount you can save is significant, consider asking a friend or family member to lend you the money to close out the current loan so you can open a new loan at a lower interest rate.
Finding the Best Title Loan Company
Just like with getting a car title loan, the lender is an important part of refinancing your title loan. Take some time, do you research, and choose a lender that meets your needs. Car title loans often have a bad reputation. Unfortunately, the actions of some lenders have gained title loans this reputation and is not representative of the entire industry. There are plenty of good lenders.
Online Car Title Loan Refinancing
Car title loans online are becoming more available to many consumers. Refinancing a car title loan can also be done online; similar to online car title loans. Before applying, figure out how much your current balance is, and the amount you want to refinance for. Then, simply apply online with the lender to start the process.