Do you have a title loan from another lender that you can't pay down because of high interest rates and unmanageable monthly payments? California Title Loans now offers pre-approval for refinancing options to anyone looking to improve their interest rate on an existing title loan in California. Refinancing can be a practical solution for those dealing with high interest rates, as it can lower your monthly payment and help you pay off the balance faster.
Are you worried about how long it will take to get approved, or even to get a lending decision? Don't be. It can be easier to get underwritten and funded for a title loan refinance than when you first applied, and most customers can get new terms and payment options for their loan in as little as one business day. There's a good chance your vehicle has enough equity to qualify, and customers who've been making payments on time each month are more likely to be approved.
The Refinancing Process: Steps And Requirements
- Assess and review the current terms of your loan. Before a lender can lower your rate or improve your payment terms, they need to know the details of your existing title loan. That includes the outstanding balance, interest rate, repayment terms, and payoff fees.
- Vehicle evaluation. Your lender must assess your vehicle's value and compare it to its value when you first took out the title loan. Is it worth more or less than when it was initially inspected, and how many miles have you driven since then? Most customers will see a lower assessed value when refinancing because the resale value has likely decreased due to increased mileage and wear and tear.
- Credit Check. As with your initial title loan application, we'll need to verify your identity and confirm that you have no recent significant credit issues. We'll also check whether you're current on your monthly payments.
- Income Verification. While you're likely current on your existing loan, a refinance with a shorter term will mean higher monthly payments. That's why your income is important here.
- Vehicle Title. Your initial title loan was secured by the title to your vehicle, and they are listed as the lienholder. You'll need to provide proof that the lender is listed as the lienholder, and most applicants can get an updated certificate of title from the DMV.
While these steps may initially appear daunting, you can apply with California Title Loans 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 off the original title loan and offer new terms and payment options. Best of all, you should be able to lower the interest rate on your existing loan considerably. Some customers with classic car title loans and other less common auto equity loans can reduce their interest rates with a simple refinance. Call us today at 855-339-1001 to get a quick quote.
Tips For Getting The Best Rates When You Refinance
Are you looking to lower your monthly payments or the interest rate to a more manageable amount? Some lenders in California won't offer you these reductions unless you ask, as they're more than happy to have you keep making the high-interest payments each month. Here are a few tips to help you get the best rates and terms when refinancing:
- Negotiate with your existing lender: Why refinance if your current lender offers new rates and terms? See if they're open to refinancing to 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 a great way to lower your interest rate, but remember that these loans require a vehicle as collateral. You'll have no problems if you make your payments on time, but even a single missed payment can lead your lender to repossess your vehicle. If you have decent credit, consider a personal loan, as some unsecured lenders can pay off your title loan and offer new repayment terms. That means you can get a lower-interest loan that isn't tied 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: Ensure you can afford the monthly payments and check your loan contract for hidden fees. That way, you know what to expect with the payment amounts and interest rate.
Other Ways To Improve Your Loan Terms
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 requesting loan forgiveness? In these scenarios, you'd take on a new title loan with new terms to replace the old one.
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, it's best to proceed with the refinance to achieve a quicker payoff.
Contact California Title Loans to see how much you can save by refinancing. Apply online or call us at 855-339-1001. We'll quickly let you know whether you qualify for a lower rate and better repayment terms.