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 rate to a more manageable level. That means you can repay your loan quicker and save substantial money with a lower interest rate.
Are you worried about how long it will take to get approved or even getting 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. Since you have an existing car title loan in California, there's a good chance your vehicle has enough equity to qualify, and you're more likely to be approved if you've been making payments on time each month. Read on to learn how a refinance works and how much money you can save.
Steps and Requirements To Refinance A Car Title Loan
- 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 what it was 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 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 confirm your identity and ensure you have no recent significant credit issues. We'll also check whether you're current on your title loan payments.
- Income Verification. Do you earn enough each month to cover 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 if you want to reduce the payment term. Your income will be confirmed with bank statements, W2's, or employment records.
- Vehicle Title. Your initial title loan was secured by the title to your vehicle, and it is listed as the lienholder. You must send in proof of this transaction, and most customers have no trouble obtaining an updated certificate of title from their DMV that shows the vehicle's ownership details.
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 uncommon vehicle equity loans can reduce their interest rate with a simple refinance. Call us today at 855-339-1001 to get a quick refinancing quote.
How To Find Competitive Rates And Lower Your Payment With A Title Loan 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 for you to keep making the high-interest payments each month. 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 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 the payments on time, but even a single missed payment can lead to your lender repossessing 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 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 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 let you know quickly whether you can get you pre-approved for a lower interest rate on your title loan and offer a better repayment option.