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How to Refinance a Car Title Loan

Refinance Title Loan

Car title loans can be expensive forms of credit. The fact that interest rates and total loan costs for car title loans can vary widely from lender to lender means that some borrowers end up with very expensive loans.

Many times these loans 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. Getting stuck in one of these loans can cause financial difficulties, so finding a way to reduce the cost is important.

The good news is there is an option to lower your payment if you rushed into a title loan with a very high rate. Car title loans offer a way to borrow money with your vehicle. If you still own your vehicle, there is a way to reduce your loan costs.

Refinancing a High Interest Title Loan

Getting stuck in a high interest title loan is not ideal. 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. It is important to note that not all states allow car title loans to be refinanced. Each state has different rules and regulations about how title loans can be refinanced.

Title Loan Refinance Requirements

Title Loan Refinance requirements
Refinancing a Car Title loan can result in a significant savings.

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.

The refinancing requirements for a car title loan are similar to the requirements when you initiated the loan. Depending on the state, there may be a requirement to have paid some portion of the loan back.

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 may need to close out the current loan before getting another title loan. Find out how to get a title loan while still making payments.

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.

Payment Dates when Refinancing

Some title loans have payment dates that do not necessary coincide with paychecks. One advantage of refinancing your title loan is you can do so with a date that is more convenient.

Payment due date for a title loan refinance
If you refinance your title loan align the payment due date so it is convenient for you.

Sometimes it can be easier to pick a date to complete the process that lines up with your typical pay period. This can make it more convenient to make your payments on time.

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.

If the reason you need to refinance is because you rushed into a title loan with the nearest lender, then don’t make the same mistake. Find one of the best title loan places and contact them about refinancing your loan.

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. Finding a title loan with better rates and terms is possible.

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. 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. There are several types of online title loans including same day and 24 hour title loans.


Rushing in to a title loan can often lead to a very high interest loan with terms that are not optimal for the borrower. It may be possible to refinance your title loan at a lower rate.

This is certainly worth looking into if you feel like you are overpaying for your current title loan.