Title loans are easy to get, but eventually, you have to pay them off. The goal is to figure out how to pay them off as quickly as possible. Life happens, and we want to give you some examples of what you can do if you find yourself in this situation. Refinance is almost the same as when you initially got an auto title loan and is an option for some borrowers that qualify. The more information you have about it, the better your decisions will be if you consider taking the refinance route. Please continue reading our article for more information about refinancing a vehicle with a title loan.
So, Can I Refinance My Title Loan?
Can you refinance your title loan? Yes, refinancing your loan means replacing it with a different loan with new terms. A fixed-rate loan from a lender is often less expensive than rolling your title loan over month after month. It is all about saving money and paying back what you owe.
If I Want to Refinance My Title Loan, How Does That Work?
When an individual is interested in re-applying for an auto title loan due to the payment being too high or needing more cash, the amount and the type of loan depend on how much your vehicle is worth. Loan lenders also consider other things like the ability to pay back the loan and your credit score. But what happens to your car? Nothing! You get to keep driving your car like normal. Once the full payment of the loan is complete, the title returns to you.
When You Apply to Refinance Your Title Loan, We’ll Need to:
- Check your credit score
- Have access to your car title
- Estimate your car’s value
- Evaluate your ability to repay the loan
- Pay close attention to the old and new terms
- Sign only after you decide this is the best option for you
Don’t Be Afraid to Negotiate Your Auto Title Loan Terms
There is always the old fashion way, and that is to negotiate! Do not be afraid to call your lender and tell them the truth about your financial situation. Your existing lender might be willing to work with you! Be honest and tell them what kind of payment you can make monthly and express your willingness to pay them back. The lender will most likely appreciate that and will help you as much as possible. If your finances are spinning out of control, your lender might prefer to get something from you before you become completely insolvent. A spoken understanding between the borrower and the lender can help you get back on stable ground.
If I Refinance My Title Loan, Can I Get More Money?
Refinancing a loan means that the new lender will pay off your old loan and will give you a new rate on a new loan. You can refinance your loan even if your title is associated with the old lender. Depending on your situation, you may be able to get some extra cash when filing to refinance your auto title loan.
It can help decrease your monthly payments, high interest rate, improve your credit score and you can use the extra funds to pay off the principal on the loan to owe less. Of course, everyone’s situation is different and you should take that into consideration.
A major benefit of refinancing is potentially lowering your monthly payment. Your credit score influences the interest rate; higher credit scores typically qualify for lower rates, while less favorable scores may see higher rates.
Can I Refinance a Car with High Mileage?
The value of your car and your income both play a large role in the qualification process. To qualify for refinancing, the car must have significant value, and you must be able to repay the refinanced loan. Cars with high mileage may be just as valuable as a car with lower mileage. Call us to check if your vehicle qualifies for a refinance auto title loan today!5
What Documents Do I Need to Refinance?
For the pre-approval process, you may need to provide proof of income, proof of residency, a driver’s license as well as a couple of other things. For example:
- Three references not related to you
- Insurance (some states require this but not all)
- Social Security Card (or a Document on which your name and SSN both are listed)
- Pictures of your car (all 4 sides, including VIN and Odometer)
Each lender’s process will be slightly different, but there are some basic requirements all lenders must follow. Max Cash® Title Loans can help you get through the process as easy as 1.2.3.
If you are ready to begin the application process, simply head to our website and fill out a title loan application, or give us a call/send us a text to get things rolling. Once approved for a refinance loan, the funds could be sent to your bank account or picked up at a Moneygram location as soon as the next business day.1,2,5
Benefits of Refinancing Your Current Loan
Refinancing can make a big difference in your financial situation. Consider the refinance options if you would like to:
- Lower your monthly car payments
- Prevent default on your current car title loan
- Borrow additional cash
- Lower interest rates
Can I Refinance My Title Loan to Avoid Repossession?
When you refinance the loan, you establish a new loan, and the new lender pays off the old (original) car title loan. When the lender pays the loan completely, the current lien should be removed from the vehicle. However, in most cases, you will not be able to refinance your loan if it is currently in default.
You should always be in contact with the lender. Discuss your intention to refinance. Communication is key.
Are there fees associated with refinancing a title loan?
Refinancing a title loan can include loan fees. These are included in your paperwork, and it’s important that you review all terms, including loan fees, before accepting the new loan. It’s important to always pay on time to avoid any additional costs associated with the new auto title loan.
What If I Am Having Trouble Getting Approved for Title Loan Refinancing?
Max Cash Title Loans is here to serve you! Our experienced customer service representatives will assist you every step of the way. You have a better chance of qualifying when you work with individuals that understand the process and can guide you in the right direction.145
If, for some reason, you don’t qualify for the refinance, somebody close to you might be willing to co-sign and help you get approved. It can be a friend, family member, or even your spouse. This is common but make sure they are willing and able to take on the risk of paying off the loan in the event you can’t.
How Can I Refinance My Existing Loan With Max Cash Title Loan?
At Max Cash Title Loans, we want to do everything we can to help you save money.³⁴ Through Max Cash Title Loans, you can consider the options of refinancing your existing title loan with another lender, and finding a better option for your financial situation. Applying for refinancing is similar to applying for a car title loan! Here’s what you can expect:
- Apply to refinance your loan directly online through our website. Or, contact one of our loan representatives at 855-561-5626!
- After applying, a loan representative will ask you to submit a few documents to help you get qualified for refinancing. This can take just minutes to do!5
- Once you have submitted those documents, the last step is to sign your new loan agreement. You might even be able to obtain more funds!
Find Out If You Qualify Today
Refinancing a loan could mean lowering the interest rate as well as saving money in the long run. Many borrowers will refinance their loans to combat high-interest rates, or lower their monthly payments to something more affordable. That’s where Max Cash Title Loans can come in and make your life easier. Through Max Cash Title Loans, you have the option to refinance your existing car title loan through us! Give us a Call Today!