With a refinance, you can dramatically lower the interest rate on your title loan while also reducing the amount of time it takes to repay the lender. Anyone with a title loan outstanding can apply to refinance their current lending terms and you should get an approval decision in less than an hour. Car Title Loans 123 offers access to refinancing all across the country, and we’re confident we can reduce the APR for anyone who’s still current on their loan.
When refinancing a title loan, the existing loan is paid off and replaced with a new one, which typically has more beneficial terms over the long run. Refinancing an existing loan aims to either lower the monthly payment or APR and pay off the loan quicker. After all, requirements are met, the lender will pay off the existing loan in full and then credit these funds towards the new loan. The refinance may also include an appraisal to assess any changes in value associated with the loan.
Title loans are secured loans, which are backed by collateral – usually the vehicle’s pink slip. In the case of a refinance, your current lender is likely holding the vehicle’s title as collateral. So the new lender will buy out the loan together or negotiate to get improved payment terms. The bottom line, you can save a lot of money with a vehicle title loan refinance, but you need to understand that your original financing terms will change, and you will likely get a new lender.
You need to show details about your current loan that show who the loan is with and what the current lending terms and payments are. Even though the original lender has your car’s title that will eventually need to be transferred to the new lender when the first loan is paid off. The new loan should offer more favorable terms than those associated with the previous lender, allowing you to save money throughout your loan repayment.
Always read the documents associated with a secured lending refi carefully and ask an expert if you have any questions. The last thing you want to do is take out a 2nd loan only to find out that the APR or additional fees make this loan worse than your current lending terms!
The rates and terms you get when refinancing an online title loan depend on several factors including your credit history, the equity in your vehicle, and the current status of your title loan. Most companies that offer to refinance a title loan can offer a lower interest rate that may approach 30% if you’re making the current loan payments on time.
Generally speaking, you should save money with a refinance by reducing the interest rate or cutting out a few payments from the repayment term. The bottom line, anyone with an interest rate over 50% on their current title loan should consider refinancing down to a lower interest rate, and Car Title Loans 123 can get your application started today!
A refinance can get you back on track with your payments and lower the APR for your existing title loan. Apply now online with Car Title Loans 123, or call us at 844-567-5011 to lower your rate!