What Is A Car Title Loan Refinance
With a car title loan refinance your able to improve the terms on your existing vehicle equity loan. Most consumers that we speak with don’t even know this is an option. In most cases they took a title loan months or even years ago and have been steadily making monthly payments. What they don’t know however is that there are other options available to them. They can have their initial note paid off in full and get a better interest rate and more favorable payoff terms. Applicants can qualify for a refinance on most types of title loans as long as nothing has changed with their vehicle or pink slip. Most lenders will assume the same finance amount but you’ll see the benefit when it comes to the payoff time and amount of finance charges over the life of the loan.
Why It Makes Sense To Refinance
It almost always makes sense to refinance your car title loan. There are few situations where a refinance is not necessary. This would be a situation where you already have a decent rate with favorable payoff terms. Or you’re just 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 a refinance you’re going to see an improvement when it comes to the lending terms. You will also benefit from either a quicker payoff or lower monthly payment as a refinance 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 an online title loan company or someone that provides funding in your neighborhood. Also, most companies aren’t in the business of providing a refinance option. 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 that may make your refi counter productive. Only work with a company that provides a disclosure and check their customer service records and complaint history online.