Are you having trouble with an existing title loan lender? We’ve all been there before when a loan offer sounded good, only to cost a lot more money and be more of a hassle than it’s worth. So what do you do now? You can’t take out a new title loan; the odds are that you can’t be approved for a debt consolidation loan or bank loan because of your poor credit score.
It turns out that there are companies that will pay off your car title loan for you. This can be a good option if you are struggling to make payments, if you want to get a lower interest rate or want a quicker payoff term to get out of your secured debt. Some companies that pay off car title loans include:
-Title Loan Refinance companies: As we’ve discussed, nearly every large licensed title loan provider will offer to refinance existing title loans with new terms and more competitive interest rates. This is similar to what happens if you want to refi a car loan or home mortgage with a new lender and get a more favorable rate.
-Payoff companies: Finding a company that wants to pay off your title loan may prove difficult simply because there’s a lack of finance lenders that want to take on the risk of paying off an existing loan that may be in default or nearing default.
-Companies that buy out title loans: When a lender offers a title loan buyout, you should consider this option as they will buy out your current loan and give you new terms and rates that are hopefully more favorable. Someone behind on their payments or considering a loan default should actively seek a buyout because you will start fresh and have new terms with a new lender.
People looking for a title loan buyout commonly ask us why any lender would want to take on the risk of buying out an existing loan. The reasons are simple:
-The original lender may have already written the loan off as a bad debt. When the debt is written off, the lender has taken the loan off their books and is moving on. When a loan is marked as bad debt, it’s sent to a 3rd party bill collector, and that company may have more incentive to settle the debt or accept a buyout.
-The original lender may want to unload the loan risk and get their money back as soon as possible so they can lend it out again. In cases like this, an aggressive finance company can step in and negotiate a lower buyout amount and turn a quick profit once you get back on track with the payments. Anyone looking to get title loans near me should first see if any companies are willing to pay off or buy out car title loans with already too high rates!
-A new lender knows may assume you’re a good customer who just got caught in a bad situation and wants to give you a second chance by buying out your old loan and giving you more favorable terms. Companies will do their due diligence and assess the risk and benefits of paying off an existing loan. They must see some financial help if they’re willing to move forward.
Of course, some companies don’t want to take on the risk of an existing title loan. In this case, you’ll likely have to find another option for getting out of your secured debt.
The best option for you will likely depend on your current financial situation and your existing title loan state.
-If you’re up to date on your payments but looking for a better interest rate or payment terms, then companies that offer to refinance title loans may be the best route. You’ll simply be paying off your old loan with a new one with more favorable terms. In some cases, you may also be able to negotiate a lower payoff amount if you’ve been making timely monthly payments.
-If you’re behind on payments or considering defaulting, companies that buy out online title loans or payoff companies may be open to giving you more favorable terms on your loan. As we said, these companies are often willing to take on more risk because the original lender has already written the loan off or wants to unload it quickly.
-If your car is about to be repossessed, then a title loan buyout may be the best option as it will allow you to keep your car and get new financing terms. If you’re close to facing a car title loan repossession, finding a company that will pay off your loan obligation may not be feasible. There’s too much risk for most companies to consider a buyout or pay off if there’s even a slight chance that the original lender would repossess the vehicle.
When you’re considering companies that pay off or buyout car title loans, there are a few key factors you should compare:
-The total payoff amount. This is the most critical factor because it will determine how much money you’ll need to come up with to complete the buyout. The best companies will work with you to get a lower payoff; in some cases, they may even be able to negotiate with your original lender.
-The interest rate and payment terms on the new online title loan. Even if a company offers a low payoff amount, you still need to ensure the new loan terms are more favorable than your current one. If not, you’re not gaining anything by doing a title loan buyout.
Besides these two main components of the new lending terms, you also need to find a lender that’s on your side and flexible when moving payment dates or excusing late payments. Any firm willing to take out a title loan buyout should understand that borrowers face daily financial issues, and it may be better for them to miss a payment and pay for more serious expenses.
Check and see the online reviews for companies before working with them. There are a lot of companies that are just trying to take advantage of desperate borrowers, so be cautious. Also, contact your state attorney general and other consumer advocacy groups to see any current complaints or legal issues involving any finance lender you’re considering working with. If you’re considering a title loan buyout, compare multiple companies and always look out for your best interests! There are companies out there that will gladly pay off your existing online title loan, but you need to take some time and methodically choose the best one!