Do you have a title loan from another lender that you simply can't pay down because of high interest rates and unmanageable monthly payments? California Title Loans now offers refinancing options to anyone looking to improve the rate on an existing title loan. A refinance can be great for those with interest rates above 40%, as we should be able to get you approved for an APR of 30% or lower. That means you can repay your loan quicker and save substantial money with a lower interest rate!
It's much easier to get underwritten and funded for a title loan refinance versus when you first applied, and most customers can get new terms and payment options for their loan in less than an hour. Read on to learn how a refinance works and how much money you can save!
Steps and Requirements To Refinance A Title Loan
- Assess and review your current lending terms. Before we can lower your rate or improve the payment terms, we need to know the current details of the existing title loan. That includes the outstanding balance, APR, repayment terms, and payoff fees.
- Vehicle evaluation. We need to assess your vehicle's value and see how it compares to when you first got the title loan. Is it worth more or less than when it was initially inspected, and how many miles have you added? Most customers will see a lower assessed value when refinancing, as the resale value has likely decreased because of increased mileage and wear and tear.
- Credit Check. Like when you first applied for a title loan, we'll need to confirm your identity and ensure you have no recent significant credit issues. We'll also look to see if you're current on the payments for your title loan.
- Income Verification. Do you make enough money monthly to afford the expected payments on your title loan? While you're likely making the payments on time for your existing title loan, a refinance will mean a quicker payoff time and higher monthly payments are possible. We'll confirm your income with bank statements or employment records.
- Vehicle Title. Your initial title loan was secured by the title to your vehicle, and they are listed as the lienholders. We require proof of this transaction, and most customers have no trouble getting an updated pink slip from their DMV showing the vehicle's ownership details.
While these steps may initially appear daunting, rest assured that you can apply and be underwritten for a title loan refinance in hours. Most customers who are current on their payments have no trouble qualifying, and your new lender can often pay the original title loan and provide you with new terms and payment options that same day!
Get the Best Rates And Lower Your Payment With A Title Loan Refinance
Are you looking to lower your monthly payments or the APR to a more manageable amount? Many finance companies don't offer you these reductions unless you ask. Here are a few tips to help you get the best rates and terms when refinancing your title loan:
- Negotiate with your existing lender: Why apply for a title loan refinance if your current lender offers new rates and terms? See if they're open to a refinance and save yourself a lot of time and money without having to apply with a new company!
Consider unsecured lending options: Refinancing a title loan can be great if you want to lower your interest rate, but you're using a vehicle as collateral! Look into a personal loan if you have decent credit, as some unsecured lenders will pay off your title loan. That means you can get a lower interest loan that's not attached to your vehicle!
- Wait for the best deal: Don't go with the first lender who offers to lower your interest or provide a better payoff amount. Get quotes from licensed title loan companies in CA to compare the best refinancing options.
- Read the fine print on your contract: Review your repayment terms and make sure you can afford the monthly payment —that way, you know what to expect with the payment amounts and APR.
Other Options Besides A Title Loan Refinance
If you're stuck with a lender who won't negotiate on a refi because you're too far behind or owe more than the vehicle is worth, there are a few other ways to improve the lending terms.
Have you considered a title loan buyout or asking for any loan forgiveness? In these scenarios, you'd take on a new title loan with new terms to replace the old one. Your lender won't say yes to every offer, but there's not much to lose if you ask them if they're open to a buyout.
Other lending offers can include a personal loan with smaller payments or even a short term loan with set payoff amounts. If you're lucky enough to get a reduced rate, moving forward with that refinance is best to get a quicker payoff!
Contact California Title Loans to see what we can save you with a refinance! Please apply online or call us at 855-339-1001, and we'll let you know within 30 minutes what your new terms will be!