Have a car title loan that you need to refinance? While car title loans are easy to get, you inevitably need to break free from them to move forward with your financial future. Read on to learn more about the steps you can take to refinance a title loan.
What does refinancing mean?
When you refinance car title loans, you replace the loan with a different one. While this doesn’t exactly solve any financial problems (like being short on cash) right away, it can alleviate some of the pressure. Usually, a fixed-rate loan from a local lender is much less expensive than continuing to roll over your title loan month after month. Refinancing a title loan usually results in a monthly savings for those who can secure a new loan, and you’ll also keep possession of your car’s title.
What’s the process for refinancing a title loan?
When you visit your local lending professionals to inquire about refinancing title loans, they’ll perform a check of your credit score. They’ll also take a look at your car title and provide an estimate of your car’s value. Once that’s established, they’ll evaluate your ability to repay the title loan. It’s usually best to shop around for a lending institution that offers the best rates. Keep in mind that there’s often some room for negotiation, so you should offer to pay what you can afford and see if the lender accepts it.
What are the benefits of refinancing a title loan?
Why should you refinance a title loan? Depending on your unique situation, it can give you leverage that allows you to borrow additional money if you need it. When you refinance a loan, the lender you’re working with essentially pays off the loan from the old lender.
In some cases, especially if your credit score has improved from the time you secured your original loan, you could end up with extra cash if your new lender finds you a favorable rate. There’s only one way to find out, and that’s by visiting your preferred lender to crunch the numbers. Key benefits include:
- Lowering monthly payments: Refinancing is an especially attractive option for those who are at risk of having their car repossessed. It can reduce your monthly payments and make them more manageable.
- Lowering interest rates: While refinancing doesn’t make a loan disappear, it can lower a massive interest rate. You’ll save money in the long run, and you can use that savings to pay down the loan principal rather than the principal plus interest.
It’s easy to refinance a title loan when you have a reputable lender on your side. Always take your time to shop around for a great deal, and maintain open communication throughout the duration of your loan to ensure best results for every involved party. The professionals at Cash-N-Go Auto Title Loans of Phoenix are ready to help you secure a favorable loan that not only frees up your title, but your finances, too. Reach out today to protect your financial future.