Many customers ask how to refinance an auto title loan in Phoenix, AZ, either because they need more money or more time to pay. There is no doubt that many of us are facing hard times right now, and a bit of grace (or extra cash) can go a long way. Refinancing may be the solution you seek. Here are five reasons you should consider it:
- Reduce the interest rate: Different lenders offer different interest rates, and that is true with auto title loans as with any other kind of loan. Also, interest rates change regularly, and it may be possible that they dropped since you originally took out the loan. Check current loan rates, and if you see an advantage, apply for refinancing. An approval can save you plenty of money in the long run, and often works best for larger loans requiring a longer payment period.
- Change your monthly payment: Most people refinance to reduce their monthly payment, but those who wish to pay less interest or wrap up their loan earlier actually seek a higher payment. Reducing your payment makes your finances more manageable, but will create a longer loan term. A larger payment offers lower interest and pays off the loan sooner. Depending on your goals and needs, refinancing can help you meet them. When you make a loan appointment, state your goals to your representative so they can design a loan program that works for you.
- Better loan policies: Loan policies like gap insurance may add extra expenses that you did not anticipate at the time you financed the loan. You can often get out of policies that add fees by refinancing. However, be sure to read the fine print so you do not enter into a new set of policies that only seek to burden you. Sometimes, these policies are buried deep and not always discussed at your initial loan appointment. Read through everything, and never sign a loan document blindly.
- Extend time: A tough month can easily place a loan in default. Sometimes, when you refinance, that allows you to skip a loan payment because the new loan pays off the old loan and payments do not resume until the following month. This can buy you time when you need it, especially if you are waiting on an unemployment claim or your first paycheck from a new job. It works much better than incurring a blemish on your credit report!
- Change financers: Sometimes, you simply need to change who is financing your loan. Perhaps their customer service is lacking, or you feel they are not upfront with you on the loan terms. You may also face oppressive policies like excessive fees and a failure to work with you when you face hardship. Refinancing may be about changing from one financer to another who will work better for you.
Cash-N-Go Auto Title Loans of Phoenix can tell you how to refinance an auto title loan in Phoenix, AZ for any reason necessary. Call, visit or apply online to learn more.