Why You Should Refinance An Existing Car Title Loan

Why It Makes Sense To Refinance Your Title Loan

It almost always makes sense to refinance your existing vehicle equity loan. There are few situations where a refi or even an update on payoff terms is not necessary. This would be a situation where you already have a decent rate with favorable payoff terms. Another time would be if you’re close to paying off the full amount due. Most companies will give out a loan with rates that are comparable to what you see across the board. Finance charges are always going to be high as many car title loan companies won’t check your credit. But as time goes on you should be making your payments on time each month. Most direct lenders will report on time payments to the different credit bureaus. Be sure to check with your finance company before you sign a contract or lending agreement to see who they report payments to. It makes sense to expect a lower rate after time, much as you would with a car loan or home equity loan. Another scenario is if you are about to payoff the loan in full because of an early payment or you’re near the end of the payoff terms. Most of the time though, a refi is going to be a good move to make. With refinancing you will see an improvement when it comes to the lending terms. You can benefit from a quick payoff or lower monthly payment as  refinancing will often lead to a lower interest rate.

What To Look For

When You Want To Refinance

Once you’ve made the decision to refinance your car title loan there are a few things to consider. Much like if you were applying for a simple vehicle equity loan, you first need to start by choosing a lender. Do you go with company or someone that provides funding because they’re in your neighborhood? Some direct loan companies in your area will tell you the process will be easier if you meet with them in person. But it may be quicker online as most companies that offer online title loans will have their process streamlined. Also, most companies aren’t in the business of providing an option to better the loan terms. In our experience only the largest lenders offer this service. It pays to shop around when looking for the best terms. Even an interest rate improvement of one or two percent can save you a considerable amount of money in the long term. Lastly, be sure to have the finance terms spelled out in language that you can easily read. Check the contract for hidden terms or fees for an early payoff.

Here at Premier Title Loans we’ll work with you to get the best rates and terms when you first apply for an online loan. Go ahead and check out our application to get start the paperwork and application process.  It often takes less than 15 minutes to submit your info. You can often expect a lending decision within a few hours. Only work with a company that provides a disclosure and fee breakdown. Check their customer service records and complaint history online. Do your best to avoid a company without a complaint history or those with multiple negative reports.