Title Loans in SC & Title Loans in NC
By Faithe Andrews • 19 Feb, 2016 •
When speaking with customers about refinancing their existing title loan, we often find that there is a lot of misunderstanding as to what a title loan refinance is and most people do not fully understand how they work.
Title Loan Refinance refers to replacing your existing loan with a new loan under different terms or conditions before the existing loan term has expired. Some factors that may change when a title loan refinance takes place may include: loan amount, interest rate, payment amount, or the term of the loan.
There are many reasons why someone may want to refinance their existing title loan and doing so may be convenient and provide benefit to the borrower.
Advantages of Refinancing My Title Loan
As mention before, there are many benefits associated with a title loan refinance. Let’s look at them more in depth…
· Access available money without having to pay off your loan completely
§Let’s say your original title loan was in the amount of $5,000. Over time you have made payments and your current balance is now $2500. At this point your loan is halfway paid off and you would have the same amount of time before it was completely paid off. Even though your loan is not completely paid off you actually have $2500 of equity (available money) in your loan. Should you have a situation where you need some extra money now, you could tap into the equity in your vehicle and get that $2500 back out before your entire loan term expires.
· Lower your payments
§Using the same example as before let’s look at how a title loan refinance could actually lower your monthly payments. When you first obtained your initial car title loan the amount was $5,000. Therefore, your monthly payment was based on owing this amount. Now you have brought your balance down to $2,500, half of your original loan amount. You could refinance your account without pulling out the equity and your new loan amount (and payment) would be cut in half. This would allow you to free up that money that you were making on the previous payment and allow you to add this money back into you monthly budget!
· Lower you interest rate
§At American Auto Title Loan we can often perform a refinance and lower you interest rate at the same time. If you have proven to have a positive, on-time payment history we can often get you a lower rate when you refinance your car title loan. We stress communication and a positive pay history to our valued customers. Having a solid payment history may allow you to borrow money at lower rates in the future. This means it costs you less!!!
How Do I Know If Am Eligible To Refinance My Title Loan?
All companies and loans are different and each one will have its own set of requirements that determine when an account is eligible for refinancing. If you are considering an auto title loan refinance planning for it a few months in advance is a good idea. Here are some things that we at American Auto Title Loan look for when evaluating an account for refinancing.
1) A Consistent, On-Time Payment History
2) Equity is Present in the Vehicle (in other words the loan has been paid down for considerably from the initial loan amount)
3) Good Communication with Customer
4) Vehicle is Being Maintained to Hold Value
How To Take Advantage of a Car Title Loan Refinance
1) Pay on time! (see a trend here?)
2) Pay down your loan sooner than your term
3) Pay more than you minimum payment
4) Come prepared with all required documents and updated personal information when attempting to refinance your loan
5) Establish a positive, open line of communication with your lender
Did You Know?
Did you know that we can refinance your existing loan with a different company? That’s right! American Auto Title Loan can buyout your existing title loan . We are one of the few companies that buy out/pay off existing title loans. All every single time we can get you a lower rate, lower payment, increase your loan amount, and maybe even all three! Give us a call or apply online in just 60 seconds to see if we can help you refinance your car title loan today! Bring us your existing contract and we can almost guarantee we will buyout your title loan or title pawn and get you the best rates on a car title loan today!