Companies That Pay Off Title Loans
To get out of paying a title loan with a very high interest rate, or at least to reduce the amount that is owed to the lender, you’ll want to partner with a company that pays off title loans like 5 Star Car Title Loans, who buys title loans or refinances them.
Pay Off a Title Loan - Refinance or Loan Buyout?
One of the major differences between a title loan buyout and refinancing is that refinancing can give you a better interest rate and reduce the amount that you owe your lender. Unlike refinancing a buyout is a type of business deal between lending companies – it is not the borrower’s decision.
Therefore, refinance your title loans payment with a different company might be the right answer for your needs in case you’re having trouble making your current loan payment.
Refinance a Title Loan with a Buyout Firm
One thing to remember when shopping for title lenders is that not all creditors will feature buy-out services. That’s a strong reason to shop around and find a lender that offers title loan buy-out options. These options are more frequently referred to as title loan refinancing. After all, that’s how it works. The new lender will purchase your old loan and refinance it under new and ostensibly more favorable terms.
Title loan refinancing is a smart move if you can get a lower interest rate or a reduced repayment under the new terms. You can also refinance your title loan to avert repossession. However, it will be difficult as other lenders are liable to catch on when you apply and become understandably concerned about your ability to repay the loan.
Get a Fair Deal: Refinance Your Title Loan Under a More Flexible Lender
By renegotiating your title loan through a refinance with another lender, you’ll be taking loads of stress off your shoulders. You can negotiate for lower payments and a better interest rate, and even for better customer service. Here are a few other points on refinancing your title loan.
How to Apply for a Title Loan Refinance
To apply for a title loan refinance you’ll need a few documents to show your new lender in order to qualify. Collecting these documents is an easy task. However, here’s what’s typically required.
How Does the Process Work in Companies that Pay Off Title Loans?
A title loan buyout can be tricky business, but it can also do wonders for you in a monetary sense if you’re looking for better or more manageable terms. When a buyout occurs, the new company isn’t purchasing your car or vehicle. Rather, they’re paying off the rest of your current title loan.
They will then transfer this amount into a new loan that potentially offers you better interest rates. You then pay this loan off with the new company
Look for Better Rates, Payment Plan or Service
There can be more than one reason to refinance a title loan. It can either be the high interest rates you’re paying plus the unfriendly service you’ve been getting from the minute you signed the contract. Here are some points to look for when searching for companies that buy out title loans:
• Interest Rates:
That’s the most obvious reason. High interest rates mean paying more money to the loan company and keeping less money to yourself. Argue for lower rates and keep in mind that every reduction matters, even if it seems negligible! At the end of road, even a fraction of percent can be hundreds of dollars.
• Payment Plan:
While it might seem less crucial than the interest rate, the payment plan you agree upon with the title loan lender can have a major impact on your ability to make ends meet at the end of the month. A good lender will be more flexible and make sure the payment plan fits your income and ability to repay. Otherwise, you will quickly find yourself skipping payments, which may result in a fee or even a repossession of your vehicle.
Nobody likes getting bad or crude service. If your current lender keeps avoiding your questions and just wants to see you paying back the loan, you should really consider switching over to a nicer lender. Sometimes getting a smile from a representative or feeling you are being taken care of can make a huge difference in your wellbeing.
Examples of 36 Month Loans*:
|Examples||Example A||Example B|
|Title Loan Amount||$2,600.00||$2,600.00|
|Interest Rate (monthly)||10.01%||9.21%|
|Term Length||36 Mo.||36 Mo.|
|DMV Lien Transfer Fee||$15.00||$15.00|
|Monthly Payment Amount||$269.00||$250.00|
*Our repayment schedules don’t have prepayment penalties or hidden fees.
Disclosure: Not very application is approved. Approval depends on certain underwriting criteria as well as the borrower’s ability to repay. There can be additional loan restrictions.
What the Refinancing Option Is Based on
While refinancing may be an easier option than a full buyout of your loan, your credit is still likely to affect what terms and conditions you’ll face.
For example, if you’ve made your payments consistently and on time in the past, you’ll likely be exposed to lesser interest rates. It will also apply if you have regularly made more than the minimum payment each time. The lender needs proof that you will be able to keep up a solid track record, and solid payment history can show this for you.
However, if you’ve defaulted or missed payments in the past, refinancing is likely to present a few challenges. You may not receive the top interest rates. While there may be small differences, they won’t be terribly noticeable or aren’t as likely to help you in your financial plight.
The good news is that with most refinancing situations, the companies that pay off title loans will try to work with you as best they can to renegotiate your payments and instill a new plan that best meets your current financial circumstances. At the end of the day, lenders are as eager for your business as you are for cash and many may attempt to work with you, regardless of your past credit history.
If You Have a Car That Isn’t Fully Paid Off Yet
A title loan can be taken out on a vehicle that hasn’t been fully paid off yet. If you’re still making payments on the vehicle, it’s possible to still put the title up as collateral with a lending company if there is enough equity in the car.
However, it’s important to consider that most title loan companies will buy out both your title loan and the remaining balance on your vehicle. In turn, this leads to a larger loan and bigger payments for you. While they’ll be consolidated (you’ll be paying off both your auto loan and your title loan through single payments each month), the payment is going to be considerably larger as it now covers two distinct loans.
Keep this in mind if you’re strapped for cash. How fast can you pay off such a large loan, and how big can your payments be? These questions, along with others, are things you should be asking yourself before considering a title loan or a loan buyout on a vehicle that you’re still paying off. If your monetary situation isn’t as strong as it should be, it may be in your best interest to pay off the vehicle completely before stepping into the “title loan territory.”
Are You Considering Any Title Loan Options? Find Companies that Buy Out Title Loans
If you’re thinking about getting a title loan or need more information about companies that pay off title loans, we are here to help. We pay off title loans at 5 Star Car Title Loans and we have been working for a very long time throughout California helping individuals like yourself put up their vehicle titles for collateral.
Contact us today, our qualified representatives are waiting by the phone to help you out and answer any questions you might have. Nobody should have to make decisions like this alone, so please let us help you. We look forward to receiving your call and improving your financial situation.